DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE INDIVIDUAL INCOME TAX LAW

Decision of the Standing Committee of the National People’s Congress on Amending the Individual Income Tax Law of the People’s Republic of China



	Order of the President of the People’s Republic of China No. 44 The Decision of the Standing Committee of the National People’s Congress on Amending the Individual Income Tax Law of the People’s Republic of China, adopted at the 18th Meeting of the Standing Committee of the Tenth National People’s Congress of the People’s Republic of China on October 27, 2005, is hereby promulgated and shall go into effect as of January 1, 2006. Hu Jintao President of the People’s Republic of China October 27, 2005 (Adopted at the 18th Meeting of the Standing Committee of the Tenth National People’s Congress on October 27, 2005) At its 18th Meeting, the Standing Committee of the Tenth National People’s Congress decides to amend the Individual Income Tax Law of the People’s Republic of China as follows: 1.Subparagraph (1) in the first paragraph of Article 6 is revised to read, “For income from wages and salaries, the amount of taxable income shall be the part remaining after deduction of 1,600 yuan for expenses from a monthly income.” At the same time, the Note attached to Schedule 1 on Individual Income Tax Rates shall be revised accordingly. 2.Article 8 is revised to read, “For individual income tax, the income earner shall be the taxpayer, and the paying unit or individual shall be the withholding agent. If a taxpayer’s individual income exceeds the amount specified by the State Council, or a taxpayer receives wages or salaries from two or more sources, or there is no withholding agent, or under other circumstances specified by the State Council, the taxpayer shall file returns and pay tax in accordance with State regulations. The withholding agent shall, in accordance with State regulations, file the returns of all the taxpayers and the full amount of the tax withheld.” This Decision shall go into effect as of January 1, 2006. The Individual Income Tax Law of the People’s Republic of China shall be amended correspondingly in accordance with this Decision and promulgated anew.

THE INTERIM MEASURES FOR THE PENALTIES RELATING TO THE ACT OF UNDER-ISSUING EXPORT INVOICES

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

Order of the Ministry of Commerce, General Administration of Customs and State Administration of Taxation

No. 26

The Interim Measures for the Penalties Relating to the Act of Under-issuing Export Invoices which were deliberated and adopted at
the 15th executive meeting of the Ministry of Commerce, on October 19,2005, and with the consent of the General Administration of
Customs and the State Administration of Taxation, are hereby promulgated, and shall come into force after 3 months as of the date
of promulgation.

Ministrer of Ministry of Commerce, Bo Xilai

Director General of General Administration of Customs, Mou Xinsheng

Director General of State Administration of Taxation, Xie Xuren

January 10, 2006

The Interim Measures for the Penalties Relating to the Act of Under-issuing Export Invoices

Article 1

These Measures are formulated in accordance with the Foreign Trade Law of the People’s Republic of Chin, the Law on Administrative
Penalty and other relevant laws and regulations for the purpose of regulating the foreign trade order and maintaining the interests
of the foreign trade of the state

Article 2

The export invoices can be divided into the export invoices printed under supervision and the self-produced export invoices. The former
refers to the export invoices uniformly printed, produced and supervised by all the local taxation bureaus; and the latter refers
to the export invoices printed by foreign trade operators themselves.

Article 3

The “under-issuance of export invoices” as mentioned in the present Measures refers to the action whereby foreign trade operators
provide importers with the self-produced export invoices whose face value is lower than that of the invoices as provided at the time
of export declaration in the foreign trade.

Article 4

If any of the following circumstances occurs, the Ministry of Commerce shall conduct investigation together with the State Administration
of Taxation, and the General Administration of Customs shall offer the cooperation:

(1)

A tip-off that a domestic enterprise or the relevant trade organization is suspected of being involved in the action of the under-issuance
of export invoices;

(2)

The relevant governmental department of an import country officially circulates a notice that the under-issuance of export invoices
is suspected of being involved;

(3)

A foreign trade operator is suspected of being involved in the under-issuance of export invoices through the customs mutual assistance
and cooperation; or

(4)

Any other tip-off that the under-issuance of export invoices is suspected of being involved.

Article 5

The Ministry of Commerce shall, within 10 days upon receipt of a request for investigation, conduct elementary examination and verification
for it and according to the examination and verification conclusion, to the case of damaging the foreign trade order and interests
of the state, transfer the relevant materials to the General Administration of Customs. The General Administration of Customs shall,
within 50 days upon receipt of the materials transferred by the Ministry of Commerce, verify the fact of the suspected under-issuance
of export invoices, and transfer the verification conclusion to the Ministry of Commerce.

The Ministry of Commerce shall, within 10 days upon receipt of the verification conclusion of the General Administration of Customs,
transfer the relevant materials to the State Administration of Taxation where the fact of suspected under-issuance of export invoices
is affirmed preliminarily. The State Administration of Taxation shall, within 50 days upon receipt of the materials transferred
by the Ministry of Commerce, conduct the investigation whether the foreign trader operator is being involved in the action of under-issuance
of export invoices and transfer the investigation conclusion to the Ministry of Commerce, and it is no need to do so for the tax
evasion or fraud is suspected and needs to be transferred to the inspection department for placing the case on file and investigation.
The Ministry of Commerce shall terminate the investigation where the action of suspected under-issuance of export invoices is not
existed upon the preliminary verification.

Where the Ministry of Commerce affirms the action of under-issuance of export invoices in light of the above-mentioned investigation
conclusion, it shall, within 15 days upon receipt of the investigation conclusion of the State Administration of Taxation conduct
preliminary ruling to the action of under-issuance of export invoices in accordance with laws, and serve the ruling to the relevant
foreign trade operator in written form within 10 days, and shall terminate the investigation where there is no fact to be confirmed
of under-issuance of export invoices upon verification.

Article 6

Within 7 days after the relevant foreign trade operator received the preliminary ruling , If the relevant foreign trade operator had
any demurral, he/it may submit the written defence materials to the Ministry of Commerce and file an application for holding the
hearing.

Article 7

Where the Ministry of Commerce holds the hearing for the act of under-issuing export invoices of the relevant foreign trade operator,
the Law on Administrative Penalty shall be abided by.

Article 8

Within 50 days after the day when the preliminary ruling is given, the Ministry of Commerce shall give the final ruling for the fact
that the relevant foreign trade operator is suspected of being involved in the under-issuance of export invoices.

Article 9

As to those foreign trade operators that the action of under-issue export invoices existed, the Ministry of Commerce shall, in accordance
with the relevant provisions in the Law on Administrative Penalty, give a warning to the enterprise that violates the provisions
for the first time; and shall give a warning to and may impose a fine of RMB 30,000 Yuan upon the enterprise that violates the provisions
for the second time within two years after the first warning; where any of the above-mentioned illegal acts seriously affects the
foreign trade business order, the enterprise that violates the provisions may be prohibited from engaging in the relevant foreign
trade business operations for a term of one up to three years in light of its circumstances. The main responsible legal representative
of the enterprise may be prohibited from acting as the legal representative of foreign trade enterprises for a term of one up to
three years in light of his circumstances.

The above-mentioned penalties shall be announced in accordance with the Foreign Trade Law and other relevant provisions.

An administrative penalty decision shall be served to the relevant foreign trade operator within 7days after the administrative penalty
is made.

Article 10

Any party has any objection to the administrative penalty mentioned in Article 9 , it may apply for an administrative reconsideration
or file a lawsuit to the people’s court in accordance with the law.

Article 11

The relevant entities and individuals shall offer cooperation and assistance to the Ministry of Commerce, the General Administration
of Customs, and the State Administration of Taxation for their investigation. The Ministry of Commerce, the General Administration
of Customs, and the State Administration of Taxation shall have the obligation to keep the state secrets and business secrets in
their investigations. The investigation functionaries of the Ministry of Commerce, the General Administration of Customs and the
State Administration of Taxation shall abide by the relevant state laws, regulations and rules during the course of investigation.

Article 12

During the course of investigation, if any foreign trader operator is found to be suspected of being involved in the under-issuance
of the export invoices printed under supervision, the State Administration of Taxation shall conduct the investigation and punishment
according to the relevant provisions in the Measures of the People’s Republic of China for the Administration of Invoices. Any person
or entity involved in smuggling or violation of customs supervisory provisions, shall be punished by customs according to the Customs
Law of the People’s Republic of China and the Regulation of the Customs of the People’s Republic of China on the Implementation of
Administrative Punishment.

Article 13

All the dates for investigation procedures as mentioned in the present Measures refer to the working days.

Article 14

The power to interpret the present Measures shall remain with the Ministry of Commerce, the General Administration of Customs and
the State Administration of Taxation.

Article 15

The present Measures shall come into force as of three months after the date of promulgation.

Ministry of Commerce, General Administration of Customs, State Administration of Taxation
2006-01-10

CIRCULAR OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA, ON RELEGATING THE EXAMINING AND APPROVING OF FOREIGN-FUNDED PRINTING ENTERPRISES TO PROVINCIAL DEPARTMENT OF COMMERCIAL ADMINISTRATION

the Ministry of Commerce

Circular of the Ministry of Commerce of the People’s Republic of China, on Relegating the Examining and Approving of Foreign-funded
Printing Enterprises to Provincial Department of Commercial Administration

Shang Zi Han [2005] No. 91

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

In accordance with State Council’s requirement on simplifying administrative examination and approval system, here announces the related
matters on relegating the examining and approving of foreign-funded printing enterprises to departments of commercial administration
of all provinces, autonomous regions, municipalities, separately listed cities and Xinjiang Production and Construction Corps (hereinafter
referred to as “provincial departments of commercial administration”) and state economic and technological development zones for
purposes of simplifying examination and approval procedures of contracts and regulations of foreign-funded enterprises, promoting
efficiency and stepping up the foreign capital absorption in service and trade industries.

Relegating the examining and approving of foreign-funded printing enterprises to “provincial departments of commercial administration
and state economic and technological development zones.

In accordance with Provisional Regulations on Establishment of Foreign-funded Printing Enterprises (Decree No. 16, 2002 of Press and
Publication Administration and Ministry of Foreign Trade and Economic Cooperation), all relegated departments and institutions should
strictly hold the pass, earnestly carry out examination and approval of the establishment and alteration of foreign-funded construction
enterprises, and go through formalities after soliciting comments from departments of press and publication administration in line
with procedures and conditions of above regulations. In case of any problems, relegated departments and institutions should report
to Ministry of Commerce timely. In case of any examination and approval of breach of regulations, Ministry of Commerce may circulate
notices or even take back authorization.

All relegated departments and institutions must be qualified to release approval certificate of foreign-funded enterprises and carry
out annual examination on line jointly with Ministry of Commerce. They are also required to use networking certificate releasing
system of foreign-funded enterprises to undertake work of examination and approval, registration and statistics. For convenience
of Ministry of Commerce’s supervision, related statistics must comply to requirements. Ministry of Commerce will hold a training
course for local departments of commercial administration and administrative committees of state economic and technological development
zones, clarifying specifics of examining and approving procedures.

Administrative committees of all relegated state economic and technological development zones should put the simplified and efficient
administrative system into practice in line with Circular of the General Office of the State Council of the People’s Republic of
China, on Forwarding Several Opinions of Ministry of Commerce and Other Departments on Going Further to Promote Developing Level
of State Economic and Technological Development Zones (No.15, 2005). Ministry of Commerce will go through formalities of relegating
separately after managing system registration, staff training and eligible connection of the networks of the state economic and technological
development zones.

The authorization takes effect as from Mar 31, 2006.

Ministry of Commerce

Jan 22, 2006

the Ministry of Commerce
2006-01-22

MEASURES FOR ADMINISTRATIVE PUNISHMENT HEARINGS OF THE CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA

General Administration of Customs

Order of the General Administration of Customs

No.145

The Measures for Administrative Punishment Hearings of the Customs of People’s Republic of China , which were adopted through discussion
at the executive meeting of the General Administration of Customs on December 27, 2005, are hereby promulgated, and shall come into
force as of March 1, 2006.

Director General of General Administration of Customs, Mu Xinsheng

January 26, 2006

Measures for Administrative Punishment Hearings of the Customs of People’s Republic of China

Chapter I General Provisions

Article 1

The present Measures are formulated according to the Administrative Punishment Law of the People’s Republic of China, Regulation
of the People’s Republic of China on the Implementation of Customs Administrative Punishment and the provisions of other relevant
laws and administrative regulations with the view of regulating the procedures of hearings on customs administrative punishment,
and protecting the lawful rights and interests of citizens, legal persons and other organizations.

Article 2

The present Measures shall be applicable to the hearings upon the application of the parties before the custom making a decision on
administrative punishment.

Article 3

The customs shall, before making any decision of administrative punishments such as suspension of relevant businesses, suspension
of practice in customs declaration, revocation of customs registration, cancellation of qualification on the practice of customs
declaration, and imposing a fine of more than RMB 10,000 Yuan upon a citizen, or imposing a fine of more than RMB 100,000 Yuan upon
any legal person or other organization, confiscation of the relevant goods, articles, smuggling means of transport, and etc., notify
the parties of their rights to request for holding hearings; if the parties request for a hearing, the customs shall organize it.

Article 4

The principle of openness, fairness, justness, and convenience for the people shall be followed for the hearings of customs administrative
punishment. The hearings of customs administrative punishment shall be held openly, unless any state secret, business secret or
personal privacy is involved.

Chapter II Organs and Personnel to Organize Hearings

Article 5

The hearings on the cases of customs administrative punishment shall be organized by the department for the trial of customs administrative
punishment cases. The hearings involving punishment on intellectual property rights cases shall be organized by the department of
legal affairs of the customs; the hearings involving punishment on qualifications cases shall be organized by the department of the
customs that makes the decision on qualification punishment.

Article 6

A presider and a clerk shall be designated to organize the hearing, and if necessary, another one up to four hearing members may
be designated to assist the presider to organize the hearing.

In case of the hearing involves any professional customs knowledge, the hearing organization organ may invite the relevant experts
of the customs business to act as a hearing member..

Article 7

A hearing presider shall perform the following functions:

Determining to postpone or suspend the hearing;

Asking questions on the facts of the case, the basis to make the administrative punishment, and the reasons thereof;

Requiring the participants in the hearing to provide or supplement evidence;

Presiding over the hearing procedures and maintaining the hearing order, and stopping acts in violation of the hearing disciplines;
and

Determining whether the relevant witnesses or authenticators may take part in the hearing.

Article 8

In case any presider, hearing members or clerk has any of the following circumstances, he shall withdraw by himself, and the parties
and their agents also have the right to apply for their withdrawal:

He is the investigator of the case;

He is a close relative of any of the parties concerned or the investigators of the case;

He has acted as a witness or authenticator of the case; or

He has an interest relationship with the handling result of the case.

The preceding provisions shall be applicable to interpreters and authenticators.

The withdrawal of any hearing member, clerk, interpreter, or authenticator shall be determined by the presider; the withdrawal of
the hearing presider shall be determined by the person-in-charge of the hearing organization organ, if the hearing presider is the
person-in-charge of the hearing organization organ, his withdrawal shall be determined by the person-in-charge of the customs that
holds the hearing.

Chapter III Rights and Obligations of the Participants and Other Personnel in the Hearing

Article 9

The participants in the hearing include the parties and their agents, the third party and its/his agent, and the case investigators;
other personnel shall include witnesses, interpreters, and authenticators.

Article 10

The parties shall enjoy the following rights:

Taking part in the hearing by using the languages of their own nationalities;

Applying for or giving up the hearing;

Applying for not holding the hearing in public;

Entrusting an attorney or other personnel to act as the agent for the hearing;

Making statements, arguments, presenting proof, and making cross-examination; and

Referring to and making modifications on the hearing records, and confirming them through signature.

Article 11

Any citizen, legal person, or other organization that has direct interests relationship with the handling result of a case may attend
the hearing as a third party if he/it requests.

Article 12

The parties and the third party may entrust one or two agents to attend the hearing. The agents shall enjoy the equal rights with
the principal within the delegated power, and perform equal obligations.

Article 13

In case any party or third party entrusts any agent to attend the hearing, he/it shall submit the power of attorney to the customs
before the hearing is held. The following matters shall be specified in the power of attorney:

The brief information of the principal and its/his agent;

The power of agency of the agent;

The starting and ending time for the power of agency; and

The date of entrustment and the seal of the principal.

In case any principal cancels the entrustment in advance, it/he shall notify the hearing organization organ in written form.

Article 14

The case investigators shall refer to the staff members of the customs who undertake investigations and gather evidence for administrative
punishment cases and attend the hearings thereof.

During the course of hearings, the case investigators shall state the illegal facts of the parties, and show the evidence thereof,
describe the decision on administrative punishment to be made, and the legal basis thereof, and make cross-examination and argument
with the parties.

Article 15

Upon the approval of the hearing presider, the case investigators, the parties, and the third party may request the witnesses to attend
the hearing, and provide the witnesses’ basic information one day before the hearing is held.

Article 16

The customs shall retain the interpreters for participants and other personnel in the hearings who are not familiar with the local
language.

Where there is necessity to make an authentication concerning the professional technical issues, the customs shall hand them over
to the customs laboratory test authentication organ or entrust other organs recognized by the state to make an authentication. Upon
the approval of the hearing presider, the parties and their agents, the third party and his/its agents, and case investigators may
request the authenticators to attend the hearing.

Article 17

The parties and their agents, the third party and its/his agent, case investigators, witnesses, interpreters, and authenticators shall
attend the hearing on schedule, observe the hearing disciplines, and answer the questions of the hearing presider truthfully.

Chapter IV Application for Hearings and the Decisions Thereof

Article 18

The parties concerned shall, within 3 days from the day when the customs house informs them of their rights to apply hearing, file
an application for hearings to the customs in written form. If the application is filed by mail, the application date shall be the
date shown in the postmark.

In case any party fails to file an application for the hearing within the prescribed time limit due to force majeure or other special
circumstances, it/he may file an application for hearing within 3 days after the obstacle is eliminated upon the approval of the
customs.

Article 19

If the customs determines to organize a hearing, it shall hold the hearing within 30 days from the day when it receives the application
for hearing, and serve the Notice of Hearing on Customs Administrative Punishment (See Annex I) to the parties seven days before
the hearing is held.

The Notice of Hearing on Customs Administrative Punishment shall specify the name of the parties, the post_title of the case to be heard,
the time and place for holding the hearing, affix the special seal of the customs administrative case , and may also specify the
following matters:

Whether the hearing shall be held openly. If the hearing is not to be held openly, the reasons shall be explained ;

The name of the hearing presider, hearing members, and the clerk;

The requirement to the parties to submit the name list and identity certificates of the personnel participating in the hearing, ,
to prepare the relevant evidence materials, , and to notify the witnesses and other matters;

Rights and obligations of the parties and their agents; and

Other relevant matters concerned.

Article 20

Under any of the following circumstances, the customs house shall make a decision on not holding a hearing:

The applicant is not a party or its agent of the case in question;

The applicant fails to file an application for hearing within the time limit as prescribed in Article 18 of the present Measures;
or

It does not fall within the scope as prescribed in Article 3 of the present Measures.

If the customs house determines not to hold a hearing, it shall make a Notice of Not Holding Hearing on the Customs Administrative
Punishment (See Annex II) within 5 days from the day when it receives the application for hearing, and serve the applicant in a timely
manner.

Article 21

In case two or more parties file an application for hearing respectively on a same administrative case, the hearing may hold jointly.

If there are two or more parties in a case, and only some of the parties concerned file an application for hearing, the customs house
may notify other parties to attend the hearing.

If only part of the parties concerned take part in the hearing, the hearing may be hold only on the facts, evidence, and law application
concerning these parties, but the custom shall make a decision on punishment in a joint way after the hearing finished .

Chapter V Holding of the Hearing

Article 22

During the hearing process, the participants and other personnel in the hearing shall abide by the following hearing disciplines:

The hearing participants and other personnel shall observe the hearing order, and can not make statements and arguments until after
the hearing presider agrees;

The auditors shall not affect the normal going of the hearing; and

Anyone who wishes to make audio recording, video recording, photographing, and interview shall report to the hearing presider for
approval beforehand.

Article 23

The following procedures shall be followed for the hearing:

The shall verify the identity of the parties and their agents, the third party and its/his agent, and the case investigators;

The hearing presider shall announce the name list of the hearing participants, interpreters, and authenticators, and inquire the parties
and their agents, the third party and its/his agent, and case investigators whether they want to apply for withdrawal;

The announcement of the hearing disciplines;

The hearing presider shall announce that the hearing begins and introduce the causes for the case;

The case investigators shall state the illegal facts of the parties, show relevant evidences, and bring forward the decisions and
basis for making administrative punishment;

The parties and their agents make statements and arguments, and bring forward opinions and allegations;

The third party and its/his agent make statements, and bring forward opinions and allegations;

The hearing presider asks questions on the facts of the case, the evidence thereof, and the basis for punishment;

The parties and their agents, the third party and its/his agent, and case investigators make cross-examination and arguments;

10.

The parties and their agents, the third party and its/his agent, and case investigators make final statements; and

11.

The announcement of the ending of the hearing.

Article 24

The parties and their agents, the third party and its/his agent, and the case investigators shall make cross examination on the truthfulness,
authenticity and connection of the evidences, aiming at whether the evidence has any effectiveness of proof and the extent of the
effectiveness of proof .

Upon the approval of the hearing presider, the parties and their agents, the third party and its/his agent, and the case investigators
may ask questions mutually in respect of the evidence, or may ask questions to the witnesses or authenticators. No one may ask any
question by such language or ways as inducing, threatening or insulting, and etc., the content of questions shall have connection
with the facts of the case.

Article 25

When making cross examination on documentary evidence, material evidence and audio-visual reference materials, the parties and their
agents, the third party and its/his agent, and the case investigators shall show the originals or the original things of the evidence;
they may not show the originals or the original things under one of the following circumstances:

If it is really difficult to show the originals or the original things, they may show the duplicates or the reproduced products upon
the approval of the hearing presider; or

If the originals or the original things do not exist any longer, but it can prove that the duplicates or the reproduced products
are consistent with the originals or the original things.

The audio-visual reference materials shall be broadcast or demonstrated at the conference of hearing, and shall be recognized after
being cross-examined.

Article 26

The hearing shall be postponed under any of the following circumstances:

The parties or their agents are unable to attend the hearing due to force majeure or other justifiable reasons;

The hearing presider, hearing personnel or the clerk shall withdraw upon temporary decision, and it is unable to determine the substituting
person on site;

There are circumstances of merger, division or other circumstances of reorganization of assets by any legal person or other organization
that acts as the party, and there is necessity to wait for the successor of the rights and obligations; or

Other circumstances under which the hearing shall be postponed according to law.

After the reasons for postponing the hearing are eliminated, the hearing presider shall determine the time for holding the hearing
once again, and notify the participants and other personnel in the hearing in written form.

Article 27

Under any of the following circumstances, the hearing shall be suspended:

There is necessity to notify new witnesses to attend the hearing or to make an authentication once again or supplement any evidence;

The parties are unable to attend the hearing for the time being due to force majeure or other justifiable reasons;

The participants and other personnel in the hearing do not observe the hearing disciplines, which results in the chaos of the hearing
order; or

Other circumstances under which the hearing shall be suspended according to law.

After the reasons for suspension of the hearing are eliminated, the hearing presider shall determine the time for resuming the hearing,
and notify the participants and other personnel in the hearing in written form.

Article 28

Under any of the following circumstances, the hearing shall be terminated:

The parties withdraw the application for hearing;

The parties fail to attend the hearing on schedule without justifiable reasons;

The parties exit the hearing during the holding of the hearing without justifiable reasons;

The parties die or the legal person or other organization that acts as one party is terminated without any successor of the rights
and obligations; or

Other circumstances under which the hearing shall be terminated according to law.

Article 29

Written transcripts shall be made for the hearings. The written transcripts for the hearings shall specify the following matters:

Causes of the case;

Name or post_title of the participants and other personnel in the hearing;

Name of the hearing presider, hearing members or clerk;

Time, place and ways for holding the hearing;

The facts and evidence of this case brought forward by the case investigators and the decision and basis for the administrative punishment
to be made;

The contents of statements, arguments and cross-examination;

Testimony of the witnesses; and

Other matters that shall be listed as required.

Article 30

The written transcripts for the hearing shall be signed or sealed by the participants and other personnel in the hearing page by page
after they have confirmed that there is no error in it. If anyone demurs about the contents of the transcripts, he may make corrections
on site and confirm it with signature or seal.

If any participant or other personnel in the hearing refuses to sign his name or seal, the clerk shall indicate this on the written
transcripts of the hearing.

Chapter VI Supplementary Provisions

Article 31

In case any hearing presider, hearing member or clerk violates the relevant provisions of the present Measures, and the circumstance
is serious, his entity shall give him an administrative punishment according to law in accordance with the relevant provisions.

Article 32

Serving of legal documents as prescribed in the present Measures shall be done in accordance with the provisions of the Civil Procedure
Law of the People’s Republic of China .

Article 33

The “day” as mentioned in the present Measures shall refer to the workday, the terms “above”, “within” and “before” shall all include
the said number itself.

Article 34

The fees for organizing the hearings on customs administrative punishment shall be borne by the customs house.

Article 35

The power to interpret the present Measures shall remain with the General Administration of Customs.

Article 36

The present Measures shall be implemented as of March 1, 2006. The Interim Measures of the People’s Republic of China for Hearings
on Customs Administrative Punishments, which were promulgated on November 12, 1996 by the General Administration of Customs, shall
be abolished simultaneously. Annex I:The__________ ___Custom of People’s Republic of China

Notice of Hearing on Customs Administrative Punishment

Custom No:[___]

_____________________:

Through the examination, the hearing applied by you (your enterprise) were accorded with the provision of Article 42 of Administrative
Punishment Law of the People’s Republic of China, and Article 49 of Regulation of the People’s Republic of China on the Implementation
of Customs Administrative Punishment. The Custom decided to hold the hearing on____________case. Please you (your enterprise) attend
the hearing at___________on____________.

(seal of the Custom)

______(year/month/day) Annex II:The___________________Custom of People’s Republic of China

Notice of Not Holding Hearing on the Customs Administrative Punishment

Custom No:[___]

_______________:

Through examination, the hearing applied by you (your enterprise) were belonged to the circumstance of iterm________thereinafter:

The applicant is not a party or its agent of the case in question;

The applicant fails to file an application for hearing within the time limit as prescribed;

It does not fall within the scope of the hearing according to law.; or

______________________________________________.

The Custom decided not to hold the hearing in accordance with the provision of Article 42 of Administrative Punishment Law of the
People’s Republic of China, and Article 49 of Regulation of the People’s Republic of China on the Implementation of Customs Administrative
Punishment.

(seal of the Custom)

_________(year/month/day)

General Administration of Customs
2006-01-26

ANNOUNCEMENT NO.7, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS CONCERNING PROMULGATION AND IMPLEMENTATION OF CATALOGUE FOR GUIDANCE OF INDUSTRIAL STRUCTURE ADJUSTMENT

General Administration of Customs

Announcement No.7, 2006 of the General Administration of Customs Concerning Promulgation and Implementation of Catalogue for Guidance
of Industrial Structure Adjustment (2005)

No.7, [2006]

Upon the approval of the state council, the National Development and Reform Commission delivered the Catalogue for Guidance of Industrial
Structure Adjustment (2005), (hereinafter referred as Catalogue for the Guidance of Industries and the detail of which attached),
through Decree No.40 of the National Development and Reform Commission of the People’s Republic of China. The decree provides that
the catalogue shall be put into effect from December 2, 2005. Some issues related to the execution in the customs are promulgated
as follows:

From December 2, 2005, the formalities to exempt the obligations of paying Import Tariffs and Tax on value added in the process of
importing could be conducted complying with the Circular of the State Council on Adjustment of Imported Equipment Taxation Policies
(Guo Fa [1997] No.37) based on project confirming documents given by the competent departments in charge of investment, if the imported
appliances self-serviced don’t fall into the scope of goods provided in the Catalogue of Non-duty-Free Commodities to be Imported
for domestic-funded Projects, and the imported cost of which is not beyond the total invested money and the domestic invested project
belongs to the encouraged classification in Catalogue for the Guidance of Industries.

After implementation of Catalogue for the Guidance of Industries, the coding of the “Items of the Project Industrial Policy under
Examination and Approval” shall be “I” in the project confirmation documents. For example, the first item in the first group of the
encouraged classification in Catalogue for the Guidance of Industries shall be filled in as follows: the Upgrade low- and Medium-yield
Farmland Synthetical Transformation and Stable- and High-yields Fundamental Farmland Construction (I0101); the second item in the
sixth group shall be filled in as follow: Natural Gas Hydrate exploratory development (I0602).

In order to keep the consistency of policy, the domestic invested project which is examined and approved or checked or filed before
December 2, 2005 (December 2, 2005 is not included) may, in case that the project conforms to the Catalogue of Industries, Products
and Technology Currently Particularly Encouraged by the State for Development (revised in 2000), continue to conduct the formalities
to exempt the obligations of paying import tariffs and tax on value added in the process of importing complying with the original
concerned regulations. And the date of the project’s examination and approval or check or filing will be set as the standard with
respect to the time consideration. The related project unit shall hold relevant materials to the customs for applying to conduct
the filing formalities of tax deduction and exemption before December 12, 2006, and out of such date the customs will not accept
and deal with the application hereinbefore. The materials include the project confirmation documents delivered by the competent departments
of investment and the “Items of the Project Industrial Policy under Examination and Approval” shall be filled in the same as the
original examined and approved items and coding.

If the project confirmation documents delivered by the competent departments in charge of investment need to be modified, the modification
shall only be made by the delivered department by the way of “correspondence”; the way of making modification directly in the copy
of the confirmation document shall be forbidden and such modification will be rejected by the customs.The announcement is hereby
specially issued.

Annex: the Catalogue for Guidance of Industrial Structure Adjustment (2005) (omitted).

General Administration of Customs

February 9, 2006

General Administration of Customs
2006-02-09

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 7 – EXCHANGE OF NON-MONETARY ASSETS

Ministry of Finance

Accounting Standard for Business Enterprises No. 7 – Exchange of Non-monetary Assets

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

To standardize the confirmation and measurement of non-monetary assets transaction, and disclosure of relevant information, these
standards are formulated according to the Accounting Standard for Business Enterprises – Basic Standards.

Article 2

The non-monetary assets transaction is an exchange of non-monetary assets between transacting parties, mainly including the transactions
of inventories, fixed assets, intangible assets and long-term equity investments. This kind of exchange involves little or no monetary
assets (namely, monetary assets are referred to as a “boot”).

The term “monetary assets” refers to the monetary capital held by enterprises, the assets to be received in fixed or determined amounts
of currency, including cash, bank deposits, accounts and notes receivable, and bond investments to be held to maturity.

The term “non-monetary assets” refers to the assets other than monetary assets.

Article 3

Where a non-monetary assets transaction satisfies the following conditions at the same time, the fair value of the assets and relevant
payable taxes shall be regarded as the transaction cost, and the difference between the fair value and the carrying value of the
asset surrendered shall be recorded into the profit or loss of the current period:

(1)

The transaction is commercial in nature; and

(2)

The fair value of the assets received or surrendered can be measured reliably.

If the fair values of both the assets received and surrendered can be reliably measured, the fair value of the assets surrendered
shall be the basis for the determination of the cost of the assets received, unless there is any exact evidence showing that the
fair value of the assets received is more reliable.

Chapter II Confirmation and Measurement

Article 4

A non-monetary assets transaction, meeting any of the following conditions, is commercial in nature:

(1)

The future cash flow of the assets received is different from that of the surrendered assets in the aspects of risk, time and amount
notably; and

(2)

The current values of the expected future cash flow of the assets received and surrendered is different, and the difference between
them is more significant than the fair values of the assets received and surrendered.

Article 5

When determining whether or not a non-monetary assets transaction is commercial in nature, an enterprise shall pay attention to whether
or not the transacting parties are connected ones. The existence of the relationship between connected parties is likely to cause
the loss of commercial nature of non-monetary assets transaction.

Article 6

Where any non-monetary assets transaction does not meet the conditions as prescribed in Article 3 of these Standards at the same
time, the carrying value and relevant payable taxes of the assets surrendered shall be the cost of the assets received and no profit
or loss is recognized.

Article 7

Where a boot is caused when an enterprise treats the fair value and relevant payable taxes as the cost of the assets received, the
boot shall be accounted for according to the following circumstances, respectively:

(1)

The enterprise, which pays the boot, shall record the difference between the cost of the assets received and the sum of the carrying
value of the assets surrendered plus the paid boot and relevant payable taxes into the profit or loss of the current period;

(2)

The enterprise, which receives the boot, shall record the difference between the costs of the assets received plus the received boot
and the carrying value of the assets surrendered plus relevant payable taxes into the profit or loss of the current period.

Article 8

Where a boot is caused when an enterprise treat the carrying value of the surrendered assets and the relevant payable taxes as the
cost of the received assets, the boot shall be accounted for according to the following circumstances, respectively:

(1)

The enterprise, which pays the boot, shall treat the result of the carrying value of the assets surrendered plus the paid boot and
relevant payable taxes as the cost of the assets received, and no profit or loss may be recognized; or

(2)

The business enterprise, which receives the boot, shall treat the result of the carrying value of the assets surrendered minus the
received boot and plus relevant payable taxes as the cost of the assets received, and no profit or loss may be recognized.

Article 9

Where several assets received in a non-monetary assets transaction simultaneously, the cost of each received assets shall be determined
according to the following circumstances, respectively:

(1)

If the non-monetary assets transaction is commercial in nature and the fair value of the assets received can be reliably measured,
the cost of each received asset shall be determined by applying the proportion of the fair value of each asset received to the total
fair value of the assets received to allocate the total cost of the assets received; or

(2)

If the non-monetary assets transaction is not commercial in nature, or it is commercial in nature, but the fair value of the assets
received can not be reliably measured, the cost of each received assets shall be determined by applying the proportion of the original
carrying value of each asset received to the total original carrying value of the assets received to allocate the total cost of the
assets received.

Chapter III Disclosure

Article 10

An enterprise shall disclose the following information relating to non-monetary transactions in the annotation:

(1)

Types of the assets received and surrendered;

(2)

Determination method for the assets received;

(3)

Fair values of the assets received and surrendered, as well as the carrying value of the surrendered assets; and

(4)

Profit or loss of a non-monetary assets transaction.

Ministry of Finance
2006-02-15

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 22 – RECOGNITION AND MEASUREMENT OF FINANCIAL INSTRUMENTS

the Ministry of Finance

Accounting Standards for Enterprises No. 22 – Recognition and Measurement of Financial Instruments

No. 3 [2006] of the Ministry of Finance

February 25, 2006

Chapter I General Principles

Article 1

With a view to regulating the recognition and measurement of financial instruments, the present Standards are formulated according
to the Accounting Standards for Enterprises – Basic Principles .

Article 2

The term “financial instruments” refers to the contracts under which the financial assets of an enterprise are formed and the financial
liability or right instruments of any other entity are formed.

Article 3

The term “derivative instruments” refers to the financial instruments or other contracts which are involved in the present Standards
and are characterized by the following:

(1)

The values thereof varies with particular interest rates, prices of financial instruments, prices of commodities, foreign exchange
rates, price indexes, premium rate indexes, credit ratings, credit indexes and other similar variables; if the variable is a non-financial
variable, there shall not exist any special relationship between such variable and any party to the contract;

(2)

No initial net investment is required, or, as compared to contracts of other types that have similar responses to the market changes,
very little initial net investment is required;

(3)

It is settled on a certain future date.

Derivative instruments shall include forward contracts, futures contracts, exchanges and options, as well as the instruments that
contain one or more of the characters of a forward contract, futures contract, exchange or option.

Article 4

The following items shall be subject to other relevant accounting standards:

(1)

The long-term equity investments as regulated by the Accounting Standards for Enterprises No. 2 – Long-term Equity Investment shall
be subject to the Accounting Standards for Enterprises No. 2 – Long-term Equity Investments;

(2)

The share-based payments as regulated by the Accounting Standards for Enterprises No. 11 – Share-based Payments shall be subject to
the Accounting Standards for Enterprises No. 11 – Share-based Payments;

(3)

The recombination of debts shall be subject to the Accounting Standards for Enterprises No. 12 – Debt Recombination;

(4)

The rights available from the settlement of anticipated debts shall be subject to the Accounting Standards for Enterprises No. 13
– Contingencies;

(5)

The contingent consideration contracts of the combining parties in business combinations shall be subject to the Accounting Standards
for Enterprises No. 2 – Business Combination;

(6)

The rights and obligations involved in a lease shall be subject to the Accounting Standards for Enterprises No. 21 – Leases;

(7)

The transfer of financial assets shall be subject to the Accounting Standards for Enterprises No. 23 – Transfer of Financial Assets;

(8)

Hedges shall be subject to the Accounting Standards for Enterprises No. 24 – Hedging;

(9)

The rights and obligations involved in the original insurance contracts shall be subject to the Accounting Standards for Enterprises
No. 25 – Original Insurance Contracts;

(10)

The rights and obligations involved in a re-insurance contract shall be subject to the Accounting Standards for Enterprises No. 26
– Re-insurance Contracts;

(11)

The equity instruments as issued by an enterprise shall be subject to the Accounting Standards for Enterprises No. 37 – Presentation
of Financial Instruments.

Article 5

The present Standards does not regulate the irrevocable credit commitments as made by enterprises (i.e., commitments to grant loans),
with the exception of the following:

(1)

the designated commitments to grant loans made to the financial liabilities which are measured at their fair values, of which the
variation is recorded into the profits and losses of the current period;

(2)

the commitments to grant loans which can be settled with the net amount of cash or by way of exchange or by issuing any other financial
instruments; and

(3)

the commitments to grant loans at an interest rate which is lower than the market interest rate.

For the commitments to grant loans not regulated by the present Standards, the Accounting Standards for Enterprises No. 13 – Contingencies
shall apply.

Article 6

The present Standards does not regulate the contracts, which are concluded for the stipulated purchase, sale or use, and, when the
time becomes mature, non-financial items are bought or sold as a performance of the contract. However, the contracts which can be
settled with cash or the net amount of other financial instruments or can be bought or sold and settled by exchanging financial instruments
shall be subject to the present Standards.

Chapter II Classification of Financial Assets and Financial Liabilities

Article 7

Financial assets shall be classified into the following four categories when they are initially recognized:

(1)

the financial assets which are measured at their fair values and the variation of which is recorded into the profits and losses of
the current period, including transactional financial assets and the financial assets which are measured at their fair values and
of which the variation is included in the current profits and losses;

(2)

the investments which will be held to their maturity;

(3)

loans and the account receivables; and

(4)

financial assets available for sale.

Article 8

Financial liabilities shall be classified into the following two categories when they are initially recognized:

(1)

the financial liabilities which are measured at their fair values and of which the variation is included in the current profits and
losses, including transactional financial liabilities and the designated financial liabilities which are measured at their fair values
and of which the variation is included in the current profits and losses; and

(2)

other financial liabilities.

Article 9

The financial assets or liabilities meeting any of the following requirements shall be classified as transactional financial assets
or financial liabilities:

(1)

The purpose to acquire the said financial assets or undertake the financial liabilities is mainly for selling or repurchase of them
in the near future;

(2)

Forming a part of the identifiable combination of financial instruments which are managed in a centralized way and for which there
are objective evidences proving that the enterprise may manage the combination by way of short-term profit making in the near future;

(3)

Being a derivative instrument, excluding the designated derivative instruments which are effective hedging instruments, or derivative
instruments to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments
for which there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shall be settled
by delivering the said equity instruments.

Article 10

Besides the provisions of Article 21 and 22 of the present Standards, only the financial assets or financial liabilities meeting
any of the following requirements can be designated, when they are initially recognized, as financial assets or financial liabilities
as measured at its fair value and of which the variation is included in the current profits and losses:

(1)

The designation is able to eliminate or obviously reduce the discrepancies in the recognition or measurement of relevant gains or
losses arisen from the different basis of measurement of the financial assets or financial liabilities;

(2)

The official written documents on risk management or investment strategies of the enterprise concerned have recorded that the combination
of said financial assets, the combination of said financial liabilities, or the combination of said financial assets and financial
liabilities will be managed and evaluated on the basis of their fair values and be reported to the key management personnel.

The equity investment instruments, for which there is no quoted price in the active market and whose fair value cannot be reliably
measured, shall not be designated as a financial asset which is measured at its fair value and of which the variation is recorded
into the profits and losses of the current period.

The active market refers to the markets which are concurrently featured by the following:

(1)

The objects of transaction in the market are homogeneous;

(2)

Buyers and sellers are available at any time to undertake the transaction at their own free will; and

(3)

The pricing information of the market is open.

Article 11

The term “held-to-maturity investment” refers to a non-derivative financial asset with a fixed date of maturity, a fixed or determinable
amount of repo price and which the enterprise holds for a definite purpose or the enterprise is able to hold until its maturity.
The following non-derivative financial assets shall not be classified as investments held to their maturity:

(1)

the designated non-derivative financial assets which, at their initial recognition, are measured at their fair values and of which
the variation is included in the current profits and losses;

(2)

the non-derivative financial assets which are designated as sellable at their initial recognition; and

(3)

loans and account receivables.

An enterprise shall, on the balance sheet date, make an appraisal on its purpose of holding and ability to hold. Where there is any
change, it shall be dealt with according to the present Standards.

Article 12

Under any of the following circumstances, it shows that the enterprise concerned does not have a clear intention to hold the financial
asset investment until its maturity:

(1)

The term for holding the financial assets is not definite;

(2)

It will sell the financial assets when any of the following changes: the market interest rate, the fluid demand, the substitutive
investment opportunity or the investment returns ratio, the source and condition of financing, or foreign exchange risk and etc.,
with the exception of the sale of the financial assets which is caused by any uncontrollable and independent event which is anticipated
not to repeat and is difficult to be reasonably predicted;

(3)

The issuer of the financial assets can settle it with a sum which is obviously lower than the post-amortization cost;

(4)

Any other circumstance which shows that the enterprise concerned does not have the clear intention to hold the financial assets until
its maturity.

Article 13

The post-amortization cost of a financial asset or financial liability refers to the following result after adjustment of the initially
recognized amount of the financial asset or financial liability:

(1)

after deducting the already paid principal;

(2)

after plus or minus the accumulative amount of amortization incurred from amortizing the balance between the initially recognized
amount and the amount of the maturity date by adopting the actual interest rate method; and

(3)

after deducting the impairment losses that have actually incurred (only applicable to financial assets).

Article 14

The actual interest rate method refers to the method by which the post-amortization costs and the interest incomes of different installments
or interest expenses are calculated in light of the actual interest rates of the financial assets or financial liabilities (including
a set of financial assets or financial liabilities).

The actual interest rate refers to the interest rate adopted to cash the future cash flow of a financial asset or financial liability
within the predicted term of existence or within a shorter applicable term into the current carrying amount of the financial asset
or financial liability.

When the actual interest rate is determined, the future cash flow shall be predicted on the basis of taking into account all the contractual
provisions concerning the financial asset or financial liability (including the right to repay the loan ahead of schedule, call options,
similar options and etc.), and the future credit losses shall not be taken into account.

The various fee charges, trading expenses, premiums or reduced values, etc., which are paid or collected by the parties to a financial
asset or financial liability contract and which form a part of the actual interest rate, shall be taken into account in the determination
of the actual interest rate. Where the future cash flow or term of existence of a financial asset or financial liability cannot be
predicted reliably, the contractual cash flow of the financial asset or financial liability for the whole term of the contract shall
be taken into account.

Article 15

Under any of the following circumstances, it shows that the enterprise concerned is not able to hold the fixed term financial asset
investment until its maturity:

(1)

Having no available financial resources to continuously provide funds to the financial asset investment so as to hold the financial
asset investment until its maturity;

(2)

Being subject to the restriction of any law or administrative regulation so that it is hard for the enterprise concerned to hold the
financial asset investment until its maturity;

(3)

Any other circumstance showing that the enterprise concerned is not able to hold the fixed term financial asset investment until its
maturity.

Article 16

Where an enterprise sells its outstanding held-to-maturity investment within the current accounting year or re-classifies it as the
amount of sellable financial asset, and the such amount is considerably large as compared with the amount before such investment
is sold or re-classified, the surplus of such investment shall be re-classified as a sellable financial asset which shall not be
classified as a held-to-maturity investment within the current accounting year and the following two complete accounting years. However,
the following circumstances shall be excluded:

(1)

The date of sale or re-classification is quite near to the maturity date or the repo date of the said investment (e.g., within 3 months
prior to maturity) that any change of the market interest rate will produce little impact upon the fair value of the said investment;

(2)

After almost all the initial principal of the investment has been drawn back by way of repayment at fixed intervals or repayment ahead
of schedule according to the provisions of the contract, the remaining part of the investment will be sold or re-classified;

(3)

The sale or re-classification is caused by any independent event that the enterprise cannot control, is predicted not to occur again
and is hard to be reasonably predicted. Such events mainly include:

The held-to-maturity investment is sold due to the serious worsening of the credit situation of the investee;

ii.

The held-to-maturity investment is sold due to the fact that the relevant tax provisions have canceled the relevant policies on the
pre-tax credit of interest taxes against the held-to-maturity investment or have remarkably reduced the pre-tax creditable amount;

iii.

The held-to-maturity investment is sold due to any important business enterprise combination or serious disposal so as to maintain
the prevailing interest risk position or maintain the prevailing credit risk policies;

iv.

The held-to-maturity investment is sold due to any significant readjustment of laws or administrative regulations on the scope of
permitted investment or the amount of investment of any particular investment product;

The held-to-maturity investment is sold due to the regulatory departments demands for significantly enhancing the fluidity of assets
or significantly enhancing the risk weight of the held-to-maturity investment in the calculation of capital adequacy ratio;

Article 17

“Loans and accounts receivable” refers to the non-derivative financial assets for which there is no quoted price in the active market
and of which the repo amount is fixed or determinable. An enterprise shall not classify any of the following non-derivative financial
assets as a loan or account receivable:

(1)

the non-derivative financial assets which are to be sold immediately or in the near future;

(2)

the non-derivative financial assets which are designated to be measured at their fair value when they are initially recognized and
of which the variation is recorded into the profits and losses of the current period;

(3)

the non-derivative financial assets which are designated as sellable when they are initially recognized;

(4)

the non-derivative financial assets whose holder finds it hard to take back almost all of the initial investment due to any reason
other than the worsening of the credit of the debtor.

The funds for securities investment and other similar funds as held by an enterprise shall not be classified as a loan or account
receivable.

Article 18

The “sellable financial assets” refers to the non-derivative financial assets which are designated as sellable when they are initially
recognized as well as the financial assets other than those as described below:

(1)

loans and accounts receivables;

(2)

investments held until their maturity; and

(3)

financial assets measured at their fair values and of which the variation is recorded into the profits and losses of the current period.

Article 19

An enterprise shall not, after classifying a financial asset or financial liability as a financial asset or financial liability measured
at its fair value and of which the variation is recorded into the profits and losses of the current period when it is initially recognized,
re-classify it as any other type of financial assets or financial liabilities, nor may it re-classify any other type of financial
assets or financial liabilities as a financial asset or financial liability measured at its fair value and of which the variation
is recorded into the profits and losses of the current period.

Chapter III Embedded Derivative Instruments

Article 20

An embedded derivative instrument shall refer to a derivative instrument which is embedded into a non-derivative instrument (namely,
the principal contract) so that some or all of the cash flow of the mixed instrument changes with the change of particular interest
rates, prices of the financial instrument, prices of commodities, foreign exchange rates, pricing indexes, premium rate indexes,
credit ratings, credit indexes or other similar variables. The embedded derivative instruments and the principal contract jointly
form into a mixed instrument, e.g., the convertible company bonds, etc.

Article 21

An enterprise may designate a mixed instrument as a financial asset or financial liability measured at its fair value and of which
the variation is recorded into the profits and losses of the current period, excepting those under the following circumstances:

(1)

Where the embedded derivative instrument does not significantly change the cash flow of the mixed instrument;

(2)

Where the derivative instruments embedded in similar mixed instruments shall obviously not be separated from the relevant mixed instruments.

Article 22

Where a mixed instrument related to an embedded derivative instrument fails to be designated as a financial asset or financial liability
measured at its fair value and of which the variation is included in the current profits and losses, and it can simultaneously meet
the following conditions, the embedded derivative instrument shall be separated from the mixed instrument and treated as an independent
derivative instrument:

(1)

Where there is no close relationship between it and the principal contract in terms of economic features and risks; and

(2)

Where it shares the same conditions with that of the embedded derivative instrument, and the independent instrument meets the requirements
of the definition of derivative instrument.

Where it is impossible to make an independent measurement when it is obtained or subsequently on the balance sheet date, the mixed
instrument shall be designated entirely as a financial asset or financial liability measured at its fair value and of which the variation
is included in the current profits and losses.

Article 23

Where the principal contract is a financial instrument after the embedded derivative instrument is separated from the mixed instrument
according to the present Standard, it shall be dealt with according to the present Standard; if the principal contract is a non-financial
instrument, it shall be dealt with according to other accounting standards.

Chapter IV Recognition of Financial Instruments

Article 24

When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.

Article 25

Where a financial asset satisfies any of the following requirements, the recognition of it shall be terminated:

(1)

Where the contractual rights for collecting the cash flow of the said financial asset are terminated; or

(2)

Where the said financial asset has been transferred and meets the conditions for recognizing the termination of financial assets as
provided for in Accounting Standards for Enterprises No. 23 – Transfer of Financial Assets.

The “termination of recognition” shall refer to the writing off the financial asset or financial liability from the account or balance
sheet of the enterprise concerned.

Article 26

Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial
liability be terminated in all or partly.

Where an enterprise transfers any of its assets used for repaying its financial liabilities into any institution or to establish a
trust, and the prevailing obligations to repay the liabilities remain to exist, it shall not terminate the recognition of the said
financial liability and the transferred asset.

Article 27

Where an enterprise (debtor) enters into an agreement with a creditor so as to substitute the existing financial liabilities by way
of any new financial liability, and if the contractual stipulations regarding the new financial liability is substantially different
from that regarding the existing financial liability, it shall terminate the recognition of the existing financial liability, and
shall at the same time recognize the new financial liability.

Where an enterprise makes substantial revisions to some or all of the contractual stipulations of the existing financial liability,
it shall terminated the recognition of the existing financial liability or part of it, and at the same time recognize the financial
liability after revising the contractual stipulations as a new financial liability.

Article 28

Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall include into the
profits and losses of the current period the gap between the carrying amount which has been terminated from recognition and the considerations
it has paid (including the non-cash assets it has transferred out and the new financial liabilities it has assumed).

Article 29

Where an enterprise buys back part of its financial liabilities, it shall distribute, on the repo day, the carrying amount of the
whole financial liabilities in light of the comparatively fair value of the part that continues to be recognized and the part whose
recognition has already been terminated. The gap between the carrying amount which is distributed to the part whose recognition has
terminated and the considerations it has paid (including the non-cash assets it has transferred out and the new financial liabilities
it has assumed) shall be recorded into the profits and losses of the current period.

Chapter V Measurement of Financial Instruments

Article 30

The financial assets and financial liabilities initially recognized by an enterprise shall be measured at their fair values. For the
financial assets and liabilities measured at their fair values and of which the variation is recorded into the profits and losses
of the current period, the transaction expenses thereof shall be directly recorded into the profits and losses of the current period;
for other categories of financial assets and financial liabilities, the transaction expenses thereof shall be included into the initially
recognized amount.

Article 31

The “transaction expenses” refers to the newly added external expenses attributable to the purchase, distribution or disposal of a
financial instrument. The newly added external expenses refer to the expenses that will occur only when the enterprise concerned
purchases, distributes, or disposes of any financial instrument.

The transaction expenses include handing charges and commissions as well as other necessary expenditures an enterprise pays to its
agency institutions, consultation companies, securities dealers and etc., but exclude the bond premiums, reduced values, financing
expenses, internal management costs, and other expenses that are not directly related to the transaction.

Article 32

An enterprise shall make subsequent measurement on its financial assets according to their fair values, and may not deduct the transaction
expenses that may occur when it disposes of the said financial asset in the future. However, those under the following circumstances
shall be excluded:

(1)

The investments held until their maturity, loans and accounts receivable shall be measured on the basis of the post-amortization costs
by adopting the actual interest rate method;

(2)

The equity instrument investments for which there is no quotation in the active market and whose fair value cannot be measured reliably,
and the derivative financial assets which are connected with the said equity instrument and must be settled by delivering the said
equity instrument shall be measured on the basis of their costs.

Article 33

An enterprise shall make subsequent measurement on its financial liabilities on the basis of the post-amortization costs by adopting
the actual interest rate method, with the exception of those under the following circumstances:

(1)

For the financial liabilities measured at their fair values and of which the variation is recorded into the profits and losses of
the current period, they shall be measured at their fair values, and none of the transaction expenses may be deducted, which may
occur when the financial liabilities are settled in the future;

(2)

For the derivative financial liabilities, which are connected to the equity instrument for which there is no quotation in the active
market and whose fair value cannot be reliably measured, and which must be settled by delivering the equity instrument, they shall
be measured on the basis of their costs.

(3)

For the financial guarantee contracts which are not designated as a financial liability measured at its fair value and the variation
thereof is recorded into the profits and losses of the current period, and for the commitments to grant loans which are not designated
to be measured at the fair value and of which the variation is recorded into the profits and losses of the current period and which
will enjoy an interest rate lower than that of the market, a subsequent measurement shall be made after they are initially recognized
according to the higher one of the following:

the amount as determined according to the Accounting Standards for Enterprises No. 13 – Contingencies; or

ii.

the surplus after accumulative amortization as determined according to the principles of the Accounting Standards for Enterprises
No. 14 – Revenues is subtracted from the initially recognized amount.

Article 34

Where an enterprise has the intention of holding or the ability to make changes so that an investment is no longer suitable to be
classified as a held-to-maturity investment, the investment shall be re-classified as a sellable financial asset, and a subsequent
measurement shall be made at it fair value. The balance between the carrying amount of the said investment at the re-classification
day and the fair value shall be computed into the owners equity, and when the said sellable financial asset is impaired or transferred
out when it is terminated from recognizing, it shall be recorded into the profits and losses of the current period.

Article 35

Where part of the held-to-maturity investment is sold or the re-classified amount thereof is considerably large, and if it does not
fall within any of the exceptions as described in Article 16 , so that the remainder of the said investment is no longer suitable
to be classified as a held-to-maturity investment, the enterprise shall re-classify the remainder of the said investment as a sellable
financial asset, and shall make subsequent measurement on it according to its fair value. The gap between the carrying amount of
the said remnant part of the investment at the re-classification day and the fair value shall be computed into the owners equity.
And when the said sellable financial asset is impaired or transferred out when it is terminated from recognition, it shall be recorded
into the profits and losses of the current period.

Article 36

As for the financial assets and financial liabilities, which, according to the present Accounting Standards, shall be measured at
their fair values, but of which the prior fair values cannot be measured reliably, the enterprise shall measure them at their fair
values when their fair values can be reliably measured, and the gap between the relevant carrying amount and the fair value shall
be dealt with according to Article 38 of the present Accounting Standards herein.

Article 37

Where the intention of holding or the ability to hold changes, or the fair value can not be reliably measured any more, or the term
of holding has exceeded “two complete accounting years” as described in Article 16 of the present Accounting Standards herein, which
makes it no longer sui

GAQSIQ, GAC, MOFCOM AND MCA ANNOUNCEMENT NO.17, 2006, ANNOUNCEMENT ON STRENGTHENING SUPERVISION AND ADMINISTRATION ON IMPORT OF DONATED MEDICAL APPLIANCES

General Administration of Quality Supervision, Inspection and Quarantine, General Administration of Customs, Ministry of Commerce
and Ministry

GAQSIQ, GAC, MOFCOM and MCA Announcement No.17, 2006, Announcement on Strengthening Supervision and Administration on Import of Donated
Medical Appliances

[2006] No.17

Since 2004, some foreign charities have been transferring inferior medical appliances, or even medical junks to China in name of donations,
resulting in serious potential safety hazard. For purposes of ensuring security and effectiveness of imported medical appliances
and safeguarding health and life safety of Chinese citizens, related regulations on importing donated medical appliances are now
announced in accordance with related laws and regulations.

Foreign donators are forbidden from secretly carrying commodities listed in List of Commodities Forbidden to Be Imported when donating
medical appliances to China.

The donated medical appliances must be new and registered in China. Prohibited articles that are harmful to environment, public sanitation
and social standards as well as contrabands of political pervasion are strictly forbidden.

When importing donated medical appliances listed in List of Electromechanical Products with Automatic Import Permission, importers
should apply for Automatic Import License of the People’s Republic of China to administrative commercial departments before going
through formalities of declaration.

General Administration of Quality Supervision, Inspection and Quarantine will record the import of donated medical appliances before
inspection. All foreign charities or their agencies in china shall apply for registration to General Administration of Quality Supervision,
Inspection and Quarantine in case of intending to donate medical appliances to China. Donated medical appliances should be registered
before inspection; General Administration of Quality Supervision, Inspection and Quarantine will carry out preliminary examination
on materials of registration in accordance with Article 1 of this Announcement. In case of necessity, General Administration of
Quality Supervision, Inspection and Quarantine will organize preliminary inspection before the shipment; in case of particularity,
Ministry of Civil Affairs will carry out special treatment after consultation with General Administration of Quality Supervision,
Inspection and Quarantine.

Customs will examine and approve the import of donated medical appliances (no matter they are listed in the List of Entry-Exit Commodity
of Inspection and Quarantine or not) based on Declared From of Imported Commodity with words of “donated articles” issued by institutes
of inspection and quarantine; as regards those related to import license administration, Customs will check import licenses in addition.

The receivers of donated medical appliances or their agencies must apply for import inspection to institutes of inspection and quarantine,
which will accept declaration of examination and carry out inspection on ports as well as sites where the medical appliances are
used based on effective materials of registration.

Receivers can only use eligible donated medical appliances with Certification of Inspection and Quarantine of Commodities of Entry
released by institutes of inspection and quarantine. The inferior medical appliances should either be treated in accordance with
related laws and regulations, or transferred to related Customs for disposal; the results of disposal should be reported to General
Administration of Quality Supervision, Inspection and Quarantine and General Administration of Customs as soon as possible.

Administrative units of non-governmental organizations and administrative organs of registration shall enhance supervision and administration
on non-governmental organizations that receive the donations. Non-governmental organizations that receive illegal donations, especially
those spitefully transfer medical junks to China will be severely punished and even their registrations will be cancelled.

This Announcement takes effect as from release.

General Administration of Quality Supervision, Inspection and Quarantine

General Administration of Customs

Ministry of Commerce

Ministry of Civil Affairs

Feb 15, 2006

General Administration of Quality Supervision, Inspection and Quarantine, General Administration of Customs, Ministry
of Commerce and Ministry
2006-02-15

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING INDIA ALLAHABAD BANK TO ESTABLISH SHENZHEN REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning Approving India Allahabad Bank to Establish Shenzhen Representative Office

India Allahabad Bank,

This Commission has received the letter which was signed by O N Singh, chairman of the board of directors of your bank.

You are hereby approved to establish a representative office in Shenzhen, whose name in Chinese is “ӡȰ-͵”
and whose name in English is “Allahabad Bank Shenzhen Representative Office ” according to the Measures on the Administration of
Representative Offices in China of Foreign-funded Financial Institutions (Order 2002 No. 8, of the People’s Bank of China) (hereinafter
referred to as these Measures).

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

China Banking Regulatory Commission

February 21, 2006

China Banking Regulatory Commission
2006-02-21

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING KVB KUNLUN NEW ZEALAND LIMITED TO ESTABLISH BEIJING REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning Approving KVB KunLun New Zealand Limited to Establish Beijing Representative
Office

KVB KunLun New Zealand Limited,

The letter which was signed by Mr. Stefan Liu and Mr. Comelis J Keyser, your executing directors, and was addressed to this Commission
about an application for establishing Beijing Representative Office has been received.

You are hereby approved to establish a representative office in Beijing, whose Chinese name is “%˾”
and whose English name is “KVB KunLun New Zealand Limited Beijing Representative Office” and whose address is No. 1 Zuojiazhuang,
Chaoyang District, Beijing according to the Measures on the Administration of Foreign-funded Financial Institutions’ Representative
Offices in China (Order No. 8,2002 of the People’s Bank of China) (hereinafter referred to as these Measures). This Representative
Office is limited to deal with the consultation, liaison, market investigation as well as other non-business activities concerning
the foreign exchange brokerage business within China standing for KVB KunLun New Zealand Limited.

According to Article 10 of the Measures on the Administration of Foreign-funded Financial Institutions’ Representative Offices in
China, upon approval, Mr. Stefan Liu is granted to have the qualifications as the chief executive officer of this Representative
Office.

China Banking Regulatory Commission

February 28, 2006

China Banking Regulatory Commission
2006-02-28

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German Laws

Act on Proceedings in Family Matters and in Matters of Non-contentious Jurisdiction

Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE INDIVIDUAL INCOME TAX LAW

THE INTERIM MEASURES FOR THE PENALTIES RELATING TO THE ACT OF UNDER-ISSUING EXPORT INVOICES

CIRCULAR OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA, ON RELEGATING THE EXAMINING AND APPROVING OF FOREIGN-FUNDED PRINTING ENTERPRISES TO PROVINCIAL DEPARTMENT OF COMMERCIAL ADMINISTRATION

MEASURES FOR ADMINISTRATIVE PUNISHMENT HEARINGS OF THE CUSTOMS OF PEOPLE’S REPUBLIC OF CHINA

ANNOUNCEMENT NO.7, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS CONCERNING PROMULGATION AND IMPLEMENTATION OF CATALOGUE FOR GUIDANCE OF INDUSTRIAL STRUCTURE ADJUSTMENT

ACCOUNTING STANDARD FOR BUSINESS ENTERPRISES NO. 7 – EXCHANGE OF NON-MONETARY ASSETS

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 22 – RECOGNITION AND MEASUREMENT OF FINANCIAL INSTRUMENTS

GAQSIQ, GAC, MOFCOM AND MCA ANNOUNCEMENT NO.17, 2006, ANNOUNCEMENT ON STRENGTHENING SUPERVISION AND ADMINISTRATION ON IMPORT OF DONATED MEDICAL APPLIANCES

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING INDIA ALLAHABAD BANK TO ESTABLISH SHENZHEN REPRESENTATIVE OFFICE

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING KVB KUNLUN NEW ZEALAND LIMITED TO ESTABLISH BEIJING REPRESENTATIVE OFFICE

CONSTITUTION ACT, 1982 – page 22

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