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CIRCULAR OF THE MINISTRY OF FINANCE, THE MINISTRY OF LAND AND RESOURCES AND THE PEOPLE’S BANK OF CHINA CONCERNING THE RELATED MATTERS ON THE ADMINISTRATION OF INCOME FROM THE PURCHASE PRICE OF MINERAL PROSPECTING RIGHT AND MINING RIGHT

Circular of the Ministry of Finance, the Ministry of Land and Resources and the People’s Bank of China concerning the Related Matters
on the Administration of Income from the Purchase Price of Mineral Prospecting Right and Mining Right

Cai Jian [2006] No. 394

The public finance departments (bureaus) of each province, autonomous region, municipality directly under the Central Government,
city specially designated in the state plan, the departments (bureaus) of state land and resources, the Shanghai Headquarters of
the People’s Bank of China, each branch, business department, central sub-branch of provincial capital cities and deputy provincial
cities:

In accordance with the Circular of the State Council concerning Rectifying and Regulating the Mineral Recourse Exploration Order in
an All-around Way (Guo Fa [2005]No. 28 ) and the Decision of the State Council concerning Strengthening the Work of Geology (Guo
Fa [2006] No. 4 ), in order to further deepen the reform of the systems of paid use of mineral resources and paid acquisition of
mineral properties, rationalize the income distribution of mineral resources, and rationally determine the ratio for the sharing
of income from the purchase price of mineral prospecting right and mining right between the central and local governments, the relevant
issues concerning the administration of the income from the purchase price of mineral prospecting right and mining right are hereby
notified as follows:

1.

The term “income from the purchase price of mineral prospecting right and mining right” herein refers to the entire income gained
by the competent departments in charge of the approval and registration of mineral prospecting right and mining right of the central
and local people’s governments by means of aliening the mineral prospecting right and mining right, which are prospected and formed
with financial contributions from the state (including those from the central finance, local finances and joint contributions by
central and local finances, the same as below), in such market ways as bidding, auction, quotation or by agreement, and the payment
made up by state-owned enterprises for their gratuitous seizure of mineral prospecting right and mining right prospected and formed
with financial contributions from the state.

2.

As from September 1, 2006, the income derived from the purchase price of mineral prospecting right and mining right shall be shared
by the central government and local governments in light of a fixed proportion, which is 20% for the central government and 80% for
local governments. The ratio for any province, municipality or county shall be determined by the corresponding provincial people’s
government under the actual situation. Where there is any provision otherwise provided by the state, it shall prevail.

3.

The administration on the collection of income derived from the purchase price of mineral prospecting right and mining right shall
be intensified and be timely paid into the state treasury in full amount. If it is really difficult to pay the purchase price of
mineral prospecting right and mining right in a lump sum, it is allowed to pay by installments upon the approval by registration
administrative organ; the time limit for payment of the purchase price of mineral prospecting right shall not be more than 2 years,
and that of mining right shall not be more than 10 years.

The concrete procedures of payment into the state treasury are: the registration administrative organ of mineral prospecting right
and mining right fills a circular on payment to the state treasury in light of the evaluated price or negotiated price, or the trading
price of bidding, auction and quotation for transferring mineral prospecting right and mining right, so as to inform the applicant
for mineral prospecting right and mining right of the payment which shall be made within 7 workdays upon receiving of the circular.
The income derived from the purchase price of mineral prospecting right and mining right that fall within the registration and administration
ground of the State Land and Resources Department of the State Council shall be collected according to the Circular of the Ministry
of Finance concerning Confirming the Related Matters on the Pilot Reform of the Administration System on Income Collection by the
Ministry of Land and Resources (Cai Ku [2003]No. 6 ) and the related provisions concerning the reform of collection administration
system. The collection of the income derived from the purchase price of mineral prospecting right and mining right that fall within
the registration and administration ground of local land and resources departments shall, as for the places that have implemented
the reform on the collection management system of non-tax revenues, be implemented in light of related provisions concerning the
reform stipulated by the local departments of finance; as for the places that have not implemented such reform for the moment, a
way of paying into the local treasury shall be adopted; a “general covering warrant” shall be used in handling the procedure of paying
into the treasury, the budgetary account shall be filled in accordance with the related provisions of the Classification of Accounts
of Government Budgetary Revenue and Expenditure of that year, and the ratio for sharing of each budgetary class shall be marked at
the column of “Notes”. The state treasuries at all levels shall, upon receiving of the payments, according to the stipulated ratio
for sharing, turn over 20% of the payments to the general treasury of each higher national treasury level by level, and transfer
80% of the payments to provinces, municipalities or counties based on their respective ratios for sharing as prescribed by the relevant
people’s government of each province, autonomous region, and each municipality directly under the central government.

4.

The departments of public finance and the departments of state land and resources at all levels shall intensify the supervision and
administration over the income derived from the purchase price of mineral prospecting right and mining right. The registration administrative
organs of mineral prospecting right and mining right at all levels shall examine and verify on the basis of all the pages of the
related payment vouchers which are affixed with the transfer/receipt seal of the bank or state treasury, and related materials and
vouchers. If the purchase price of mineral prospecting right and mining right is not paid in full amount timely , the registration
of mineral prospecting right and mining right shall not be handled, and the license for mineral prospecting right or mining right
may not be issued. The departments of public finance shall ensure the necessary expenses to be enough for transacting the business
of transferring mineral prospecting right and mining right according to the requirements of the land and resources departments when
they are performing their functions and duties, and ensure that the income derived from the purchase price of mineral prospecting
right and mining right be collected in full amount and handed over to the treasury in time.

5.

The public finance departments shall closely cooperate with the departments of the state land and resources at all levels take more
measures in the investigation and prosecution of all kinds of violations of laws and regulations that exist in the course of transferring
of mineral prospecting right and mining right; investigate and prosecute violations of laws and regulations strictly, in accordance
with law, such as reducing or exempting fees by violating laws and regulations, failing to collect fees, failing to collect the due
fees, failing to pay to the state treasury in full amount timely, retaining fees, financing expenses with revenue, embezzling fees,
and commercial bribes and so on; investigate the administrative and economic liabilities of the related leaders and persons who held
liable; If any crime is constituted, the case shall be transferred to the judicial organ for investigating the criminal liabilities.

6.

Upon the issuance of this Circular, If there is any provision that isn’t consistent with this Circular, this Circular shall prevail.

Ministry of Finance of the People’s Republic of China

Ministry of Land and Resources of the People’s Republic of China

People’s Bank of China

August 14, 2006



 
the Ministry of Finance, the Ministry of Land and Resources￿￿the People’s Bank of China
2006-08-14

 






ANNOUNCEMENT NO.56 OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.56 of the National Development and Reform Commission of the People’s Republic of China

No.56

National Development and Reform Commission has approved 93 items of industrial standards (please refer to Appendix for codes, post_titles
and dates of enforcement) such as Gap Filler of Pottery and Porcelain, Furring Tile and Ground Tile, including 18 items of building
material industry, 39 items of light industry, 29 items of coal industry, 6 items of black metallurgy industry, and 1 item of package
industry, which are now announced to the public.

Building Material Industry Press is responsible for publishing of above standards of building material industry, China Light Industry
Press is in charge of the publishing of standards of light industry, and the China Coal Industry Publishing House will publish standards
of coal industry. In addition, the Metallurgical Industrial Press will publish the standards of black metallurgy industry and the
Planning Press will publish the standards of package industry.

Appendix: Codes, post_titles and Dates of Enforcement of 93 items of Standards of building material industry, light industry, coal industry,
black metallurgy industry and package industry

National Development and Reform Commission of the People’s Republic of China

August 19, 2006



 
National Development and Reform Commission of the People’s Republic of China
2006-08-19

 






THE 11TH FIVE-YEAR DEVELOPMENT PLAN ON EXPORT OF AGRICULTURAL PRODUCTS






The 11th Five-year Development Plan on Export of Agricultural Products

The Ministry of Commerce
Contents
Preamble

I. Guiding Concepts and Principles

II. Analysis on Export Competitiveness of Agricultural Products

III. Development Objectives for Export of Agricultural Products

IV. Policy Measures to Enlarge Export of Agricultural Products
Preamble

China is a big agrarian country, and the Communist Party of China (CPC) and Chinese Government regard the settlement of the issues
concerning rural areas, agriculture and farmers as their long-term task. The formulation of this 11th Five-year Development Plan
on Export of Agricultural Products, the analyses on the situation in the international trade of agricultural products, and the definition
of the development objectives and strategic measures constitute an important measure to enhance the international competitiveness
of China’s agricultural products, to enlarge the export of agricultural products and to solve the employment problems in rural areas
and increase the income of farmers, reflect the implementation of the scientific concept of development, the balancing of urban and
rural development, the balancing of development among regions, the balancing of economic and social development, the balancing of
development of man and nature, and the balancing of domestic development and opening wider to the outside world, and are also a necessary
requirement to build an all-round well-off society.

With the continual enhancement of the international competitiveness of China’s agricultural products in the 10th Five-year period,
China’s export of agricultural products has seen a strong development and an increasingly-expanded scale, increasing from $16 billion
USD at the beginning of the 10th Five-year period to $27.18 billion USD in 2005 with a growth rate of 70%, accounting for 3.6% of
China’s total export amount ($762 billion USD) of that year and 9.6% of the added value of agriculture (RMB 2271.8 billion Yuan)
of that year. Besides, China’s ranking in world’s trade of agricultural products has incessantly moved upwards, and according to
the statistics by the World Trade Organization (WTO), China’s export of agricultural products ranked the 5th place in the world in
2004, accounting for 3.2% of world’s trade of agricultural products and enjoying a growth compared to the beginning of the 10th Five-year
period.

In the 10th Five-year period, China’s export of agricultural products has experienced 4 changes:

(1)

Changes have taken place in the structure of commodities in that the labor-intensive products with comparative advantages have played
a leading role in the export. Such advantageous commodities as horticultural, livestock and poultry, and aquatic and marine products
had an export amount of $18.36 billion USD in 2005, accounting for 67.5% of the whole export amount of agricultural products. Meanwhile
the exported agricultural products have rapidly been diversified, having now more than 1300 kinds over the former more than 900 kinds,
and many miscellaneous articles have become leading exports. China now has the largest export volume of such agricultural products
as garlic, peanut, broiled eel, canned mushroom, cider, shiitake fungus, bee honey etc., and the second largest export volume of
tea, canned tomato paste, sausage casing, tobacco, maize etc. As far as the geographic distribution is concerned, a series of bases
for the production and processing of agricultural products have taken shape everywhere, such as the vegetable export base in Shandong
Province, the flower export base in Yunnan Province, the processing of broiled eel in Fujian Province, the shiitake fungus in the
Provinces of Zhejiang, Fujian and Henan, the apple and cider in the Provinces of Shanxi and Shandong etc. And the processing skill
of agricultural products has constantly been improved in that some products have had a mature and complete industrial chain covering
the breeding, processing, packaging, transporting, marketing and development of new products.

(2)

Changes have taken place in the composition of exporters in that foreign-funded and private enterprises have become main exporters.
The situation in the export of agricultural products at the beginning of the reform and opening-up characterized by a monopoly of
a few foreign trade companies and a purpose of earning foreign exchanges has now been replaced by one characterized by an exporter
composition of 17,600 enterprises and an active participation in the international competition upon the comparative advantages, and
the enterprises with an integrated system covering growing, producing and trading have become leading exporters.

The amount of agricultural products exported by foreign-funded enterprises in 2005 reached $11.7 billion USD, accounting for 43% of
China’s whole export amount of agricultural products, and running ahead of state-owned enterprises as top exporters. And the amount
of agricultural products exported by private enterprises has now accounted for 25% of China’s whole export amount of agricultural
products instead of a share of 7% at the beginning of the 10th Five-year period.

(3)

Changes have taken place in the export modes, and the business modes of “company plus base” and “company, base plus farmer” have gradually
been popularized, and the export enterprises have had a stronger consciousness of quality safety. Most export enterprises of agricultural
products have possessed their own production bases, carried out a standardized production, established gradually a scientific and
effective quality monitoring system, enhanced their consciousness of quality safety, and done better in breaking the technical barriers.
Some enterprises have accomplished an integration of growing, producing and trading, marching towards a modernized agriculture characterized
by high quality, high yield, high efficiency, environmental friendliness and safeness. More and more export enterprises have obtained
universal certifications in that there are now nearly 1,000 enterprises having obtained the Quality Assurance International Organic
Certification and there are more than 2,000 enterprises having obtained the certification of the HACCP (Hazard Analysis and Critical
Control Point).

(4)

Improvements have taken place in the market structure, and a diversified market structure has gradually been taking shape. Despite
the fact that Japan, Hong Kong Special Administrative Region, the European Union, the United States, Republic of Korea and the ASEAN
countries have long remained China’s traditional market for export of agricultural products, and that the 6 main markets still share
more than 80% of China’s total export volume, China’s export to the emergent markets has seen a far rapid growth rate compared to
that of the traditional markets, and up to 2005, China’s agricultural products have been sold to more than 200 countries and regions.

In the 10th Five-year period, some commodities have experienced a diversified market structure, entering into the developed countries
and emergent markets: realizing a large-scale export of grain products to Taiwan Province, and the African and West Asian markets
etc., thus breaking the former market structure with Japan, Republic of Korea and Southeast Asia as the main market; experiencing
a breakthrough in the export of fruits to North America, Europe and Latin America; resuming the export of livestock to the Mid-Eastern
region after a suspension of 8 years.

For a long time, the export of agricultural products has played an important role in encouraging employment in the rural areas, increasing
the income of farmers, optimizing the industrial structure in the rural areas, enhancing the international competitiveness of the
agricultural products, promoting the level of domestic relevant industries, and settling the issues concerning rural areas, agriculture
and farmers.

(1)

Increasing the income of farmers. Although under the present condition￿￿ the agricultural products are oversupplied in domestic markets,
the export of agricultural products still bring more profits than being sold domestically. In some main producing areas, the export
of agricultural products has become the main income source for the farmers there.

(2)

Encouraging employment in rural areas. The export of agricultural products has brought about the development of the agricultural,
manufacturing and service industries, creating a large quantity of jobs for these industries. According to the statistics by experts,
every $10,000-USD export of agricultural products can create about 20 jobs both directly and indirectly. Based on the export amount
of agricultural products in 2005, the export of agricultural products has totally created more than 54 million jobs.

(3)

Promoting the development of agriculture. In order to accommodate the high standard and strict requirement in the international market,
the standards for China’s export of agricultural products have incessantly been optimized in the aspects of base building, variety,
quality, packaging, warehousing and transportation, brand etc., meanwhile China has introduced in a large amount of foreign varieties,
capitals, technologies and advanced managerial experiences during the opening-up of its agriculture. The export-oriented agriculture
has been developed in many regions, and some bases for the production and export of advantageous agricultural products have taken
form, such as the vegetable export base in Shandong Province, the flower and tricholoma matsutake export base in Yunnan Province,
the processing of broiled eel in Fujian Province, the apple and cider in Shaanxi Province, and the tomato in Xinjiang Uyghur Autonomous
Region etc.

At present, many problems still exist in China’s export of agricultural products, for instance, the quality safety remaining to be
improved, a strong impact of foreign technical barriers, a failure of establishing and perfecting the policy system for the promotion
of the export and development of agricultural products, a lack of core competitiveness in the export enterprises of agricultural
products etc. And if these problems remain unsettled, the growth and sustainable development of the export of agricultural products
will be seriously restrained. China is now in the WTO post-transition period when its agriculture is confronted with a fully-increased
competition pressure, and China’s traditional small-sized and decentralized operation of agriculture cannot pose a threat towards
the large-scale modernized agriculture of foreign countries, and this situation will not be fundamentally reversed in rather a long
time. The unfair international environment for the trade of agricultural products due to the strongly-subsidized and highly-protected
agriculture of the developed countries will not either be fundamentally changed in a short term. Therefore, during the 11th Five-year
period, stress shall be put in the settlement of a series of policy issues that influence the export of agricultural products, in
the creation of sound policy and trade environment, in the improvement of the export-promoting mechanism, in the full enhancement
of the quality safety of the products, in the support of the export enterprises of agricultural products, and in the enhancement
of the international competitiveness of China’s agricultural products so as to make the export of agricultural products play an active
role in readjusting the agricultural productive structure and in advancing a modern agricultural construction.

I.

Guiding Concepts and Principles

1.

Guiding Concepts

To uphold Deng Xiaoping Theory and the Important Thought of “Three Represents” as the guidance, to fully implement the spirit of the
16th National Congress of the CPC and the 5th Plenary Session of the 16th Central Committee of the CPC, to closely center on the
objective of building a new socialist countryside, to implement of the scientific concept of development, to employ all available
means to enlarge the export of agricultural products, to promote the change of the growing mode for the export of agricultural products
and the readjustment of the export structure, to improve the quality and hygienic safety of agricultural products, to develop the
agriculture characterized by high yield, high quality, high efficiency, environmental-friendliness and safeness, to promote the agricultural
products to rise in value through processing and transformation, to enhance the export competitiveness of agricultural products,
to foster the export enterprises of agricultural products, and to advance the sustainable development for the export of agricultural
products, so as to make China’s agriculture more open to the outside world, and make contributions to increase the income of farmers,
to optimize the agricultural productive structure, to promote the industrialized operation of the agriculture, and to advance the
agricultural modernization.

2.

Fundamental Principles

(1)

To adhere to the scientific concept of development and to encourage employment in rural areas and increase the income of farmers.
To promote the settlement of the issues concerning rural areas, agriculture and farmers serves as the current basic task in enlarging
the export of agricultural products. The development of the export of agricultural products shall be based on serving the overall
situation of the economic and societal development so as to bring into full play its important roles in encouraging employment in
rural areas, in promoting the increase of the income of farmers and the readjustment of the agricultural productive structure, and
in enhancing the competitiveness of the agriculture.

(2)

To adhere to proceed according to the practical situation, and to bring into full play the comparative advantages. China’s export
of agricultural products is still in its primary phase, in that it remains far behind China’s overall development of foreign trade,
that the export enterprises have a smaller scale and a weak strength, that the quality and processing of products remain unsatisfactory,
that the quality and efficiency of the export of agricultural products remain unsatisfactory, and that its roles in encouraging employment
in rural areas, in increasing the income of farmers and in readjusting the industrial structure of the agriculture remain to be further
strengthened. Therefore, the extension and development of the export of agricultural products shall be based on the characteristics
of China’s agricultural resources and giving full play to the advantage of an abundant labor force, and on the avoidance of disadvantages
of shortage of land and water, shall proceed according to the practical situation and scientifically formulate the development objectives
and strategic measures and put them into implementation.

(3)

To adhere to technological innovation, and to emphasize the fostering of the core competitiveness. The essence of the international
competition of agricultural products is the technological competition, and thus the technological innovation is the orientation for
the future competition of agricultural products. In the 11th Five-year period, we shall carry out the strategy of thriving the trade
through science and technology, and shall quicken the pace of technological innovation and structural update, enhance the processing
of agricultural products, optimize the structure of the export products, and strive to enhance the technological content and added
value of the export agricultural products through the introduction and self-development of new products and technologies.

(4)

To adhere to the market-oriented reform, and to actively foster exporters. We shall bring into full play the fundamental role of market
in distributing resources, emphasize the creation of a sound operational environment for market subjects, coordinate the state’s
macroscopic objectives and the microscopic behaviors of market subjects, and promote the sustainable development of the export of
agricultural products.

(5)

To adhere to the development principles of stressing key points and making overall plans. In the 11th Five-year period, we shall mainly
support the extension of export in the areas where the export of agricultural products is obviously advantageous, the export of such
advantageous agricultural products as vegetables, fruits, tea, aquatic and sea foods, poultry etc., and the enterprises have an integrated
system of growing, processing, and trading, a productive base of their own, a guarantee of product quality, a strong processing capability,
and obvious competition advantages. Meanwhile, due attention shall be given to a balanced development among different regions, industries,
enterprises, products and markets, and the short-term and long-term objectives shall be planed as a whole.

3.

Development Strategy

According to the abovementioned guiding concepts and fundamental principles, China’s overall strategy in enlarging the export of agricultural
products during the 11th Five-year period is to establish a strategy of comparative advantages based on the export of low-cost and
labor-intensive agricultural products, to enhance the international competitiveness of the export of agricultural products with the
quality safety as core, and to establish a global export system of agricultural products characterized by a diversification of markets.
To improve the policy measures in promoting the export of agricultural products, to actively cope with the complicated international
competition, to make China’s agriculture more open to the outside world, to optimize the industrial structure, to encourage employment
in rural areas, and to increase the income of farmers.

(1)

To establish a strategy of comparative advantages based on the export of low-cost and labor-intensive agricultural products

In quite a long time henceforth, such labor-intensive agricultural products as aquatic products, livestock, horticultural products
and processed products etc. will still have a strong comparative advantage in the division of labor and competition in the international
market. To establish an export development strategy of comparative advantages is for the purposes of promoting the strategic readjustment
of the agricultural structure and enhancing the efficiency in resources distribution, and of releasing the employment pressure in
rural areas and changing the function of export from “foreign exchanges contribution” to “employment contribution”. This is not only
the need of bringing into full play the advantages in China’s agriculture and taking part in the international competition, but also
a strategic choice to build a modernized agriculture, to develop rural economy, and to increase the income of farmers.

(2)

To enhance the international competitiveness of the export agricultural products with the quality safety as core

At present, China’s export agricultural products are vulnerable to the restriction of technical barriers of foreign countries due
to such quality safety issues as the epidemic diseases, residue of pesticide and veterinary medicine, and environmental pollution
etc, restraining the full play of the advantages of aquatic products, livestock, fruits and vegetables etc. Besides the full play
of the competition advantages of labor-intensive agricultural products, we shall fully enhance the core competitiveness of China’s
agricultural products and establish a reputation in the international market through enhancing the quality safety of products, incorporating
technological innovations and structural updates, introducing from developed countries and regions the quality varieties, food processing
technologies, marketing modes, advanced experiences in international operations so as to enhance the core competitiveness of the
export of agricultural products and hold a good reputation in the international market.

(3)

To establish an export market system of agricultural products characterized by a diversification of markets

In recent years, China has exported more agricultural products to Oceania and South America, however, the high dependence on such
traditional markets as Japan, Republic of Korea, the ASEAN, and the European Union etc. remains unchanged. Because international
trade frictions are frequent in the trade of agricultural products, the over-concentration of export markets makes China’s products
vulnerable to restrictions of technical barriers, antidumping and other non-tariff barriers from importer countries, and goes against
the avoidance of risks in the international market and the establishment of a stable export-promoting mechanism for agricultural
products. Therefore, we shall gradually readjust the market structure for the export of agricultural products, establish a global
export system of agricultural products characterized by a diversification of markets, by means of stabilizing and enlarging such
traditional markets as Japan, Republic of Korea and the ASEAN etc., deeply developing such markets with huge potentials as the European
Union and the United States, and actively developing such emergent markets as Middle East and the Commonwealth of Independent States
etc.

II.

Analysis on Export Competitiveness of Agricultural Products

1.

International Environment for Export of China’s Agricultural Products

(1)

The global trade of agricultural products grows steadily. After a negative growth during the 3 years from 1997 to 1999, the global
trade of agricultural products began to grow steadily, and especially in 2003 and 2004 it kept a growth rate of more than 10%. According
to the statistics by the WTO, the global trade of agricultural products from 2000 to 2004 has seen an average annual growth rate
of 9%, tantamount to the growth rate of global goods trades.

(2)

The developed countries have more shares in the trade of agricultural products. Compared to the 1960s, the developed countries have
had a share of more than 70% against the former less than 60% in the international trade of agricultural products, and the developing
countries have now a share of less than 30%. This is because the developed countries are able to export and import more agricultural
products due to the strong competitiveness of their agricultures and their abundant purchasing power, and because the primary agricultural
products, as main exports of the developing countries, have had a continuously-dropping price.

(3)

The consumption structure has changed; the processed end-products have more shares. Grains have a continuously-decreasing share in
the consumption of foods, while the aquatic and marine products, vegetables, and fruits have a steadily-increasing share. Consumers
in the United States now annually consume 25% more vegetables and fruits than they did 20 years ago, and have a rapidly-growing demand
for organic foods. The end products that can be directly consumed have now a share of 30% against less than 20% in 1980.

(4)

The international environment for agricultural competition remains unfair. Agricultures in the United States, the European Union and
other developed countries remain highly subsidized, and such export-supporting policies as export subsidy and export credit etc.
remain applicable there. The huge subsidy gravely distorts the international trade of agricultural products in that the agricultural
competitiveness of developed countries is enhanced, and the competition advantages of agricultural products from developing countries
including China are neutralized, and that agricultures in developing countries are badly impacted, causing huge damages to those
developing countries that are unable to subsidize their agricultures and making China’s agricultural products difficult to enter
into the markets of developed countries. Besides, traditional tariff-rate quota, tariff peaks, tariff escalation, seasonal tariff,
and non-tariff barriers represented by technical trade barriers exist ubiquitously, acting as a big obstacle for China’s export of
agricultural products.

(5)

The new round WTO talk on agriculture proceeds slowly due to the anfractuosities of interests, and the effort to establish a new rule
and order for international agricultural trades proceeds with difficulties. In quite a long time henceforth, China’s export of agricultural
products will be confronted with extremely complicated international competition environment. The international market access conditions
for agricultural products have not been effectively improved, and serious problems exist in the tariff peaks and tariff escalation
for agricultural products, and the antidumping and special safeguards against China’s agricultural products may be continuously escalated.

2.

Comparative Advantages of China’s Export Agricultural Products

China has an arable land of 1.95 billion mu (1 hectare=15 mu), only 10.4% of China’s territory; China has a land per capita of 1.5
mu, less than 1/2 of world’s average, and has a tendency of further decrease; China’s water per capita is of 1/4 of world’s average.
Given China’s practical situation in agricultural resources, the development of land-intensive agricultural products is less advantageous;
as a result, such land-intensive products as wheat, cotton, and soybean etc. are disadvantaged in the international competition of
agricultural products. Contrarily, China has an abundant and low-cost labor force, and such labor-intensive agricultural products
as livestock, horticultural products etc. have relatively strong export potentials. During the 11th Five-year period, the export
of labor-intensive agricultural products will keep strong competitive advantages.

(1)

Advantages in the diversity of agricultural resources. Spanning the subtropical zone and temperate zone, China has diversified climatic
conditions and natural resources, producing various kinds of agricultural products and thus meeting the diversified demands in the
international food market. China is now bringing full play the regional comparative advantages, emphasizing the fostering of advantageous
agricultural products and producing areas, and building producing bases for advantageous agricultural products, namely the main producing
areas of orange in the upper-and-middle reach of the Yangtze River, South of Jiangxi Province, South of Hunan Province, North of
Guangxi Zhuang Autonomous Region, South of Zhejiang Province, South of Fujian Province, and East of Guangdong Province, the apple
producing area in Bohai Bay and Loess Plateau in Northwest China, the beef cattle producing area in Central China and Northeast China,
the mutton sheep producing area in Central China, Inner Mongolia, Hebei Province, Northwest China, and Southwest China, the milk
producing area in Northeast China, North China, Beijing, Tianjin, and Shanghai, the aquatic products breeding area in Southeast Coastal
Area, Yellow Sea and Bohai Sea. In most areas of China, the raising of livestock and poultry and the growing of vegetables have all
comparative advantages.

(2)

Advantages in labor force resources. According to studies, China’s agricultural sector needs only a rational labor force of 196 million
persons, while in 2002 those employed in the agricultural sector reached 325 million persons with a surplus labor force of 129 million
persons. And according to the estimates by the Ministry of Agriculture, the surplus labor force in rural areas will reach 180 million
persons at the end of the 10th Five-year period, providing for quite a long time low-cost labor force to the production, processing
and service of export agricultural products. Those abovementioned conditions are very beneficial to the development of labor-intensive
agricultural products. China’s vegetables, fruits, livestock, aquatic products have an obvious lower domestic price compared to the
international one, possessing an advantage of cost and price competitiveness.

(3)

Advantages in market locations. Asia is a market with the most importance and growth potentials for world’s trade of agricultural
products, and Asian market imported 23% of world’s agricultural products with Japan, Republic of Korea, Hong Kong SAR, Taiwan Province,
Indonesia, Thailand etc. as important import countries and regions of agricultural products in 2004. Thanks to the short distance
and transportation and sale conveniences, China has an obvious location advantage in export to the Asian market such high-value agricultural
products as vegetables, fruits, aquatic products, meats etc.

3.

Main Problems that Impact China’s Export of Agricultural Products

Despite that China needs to readjust its strategy of low-cost competition advantage in the long run, China still needs to bring into
full play its comparative advantage and enlarge the export of agricultural products in the near future. At present, a series of problems
are impacting China’s full play of its export advantage, and restraining the effective translation of the resource and comparative
advantages of China’s agricultural products into competition advantages and export growth.

(1)

Quality safety management of export agricultural products needs to be further strengthened. In recent years, China’s export agricultural
products have enjoyed a constantly-raised quality safety level; the enterprises have enjoyed a constantly-strengthened consciousness
of quality, and most of export enterprises of agricultural products have obtained their own producing bases, realizing a standardized
production and gradually establishing a scientific and effective quality monitoring system. However, influenced by the overall agricultural
productive mode, the quality safety needs to be further enhanced, and the issues of quality and hygiene remain an important factor
in restraining China’s extension of export.

(2)

Foreign technical barriers will render a long-term obstacle to China’s export of agricultural products. Developed countries have continuously
elevated their technical standards on import of agricultural products, covering eco-environment, animal welfare, intellectual property
rights and other fields. Japan and the European Union have successively revised their laws concerning food safety and hygiene; Japan
formulated the Positive List System for Agricultural Chemical Residues in Foods, greatly elevating the testing standards for agricultural
chemical residues in foods; the European and American developed countries raised a demand of quality traceability for agricultural
products and foods, raising thresholds for China’s export of agricultural products.

(3)

The export-supporting policy system has not yet taken form. Difficulties in financing and the high credit threshold have become the
most important factor in restraining the development of exporter enterprises. The financial institutions in some areas offered to
export enterprises of agricultural products a one-year loan with interest rate of 9-10%, far beyond the capacity of these enterprises;
land, mountain forest, agricultural infrastructure and other assets cannot be mortgaged for loans; and the high export cost impacts
the benefits of the enterprises. The developed countries have continuously elevated the technical standards for import agricultural
products, as a result of which, China’s export agricultural products have to undergo more and more testing indexes and thus have
higher export co

SUPPLEMENTARY CIRCULAR OF SHENZHEN STOCK EXCHANGE CONCERNING THE MATTERS ABOUT THE EQUITY DISTRIBUTION OF LISTED COMPANIES IN THE RULES OF SHENZHEN STOCK EXCHANGE FOR THE LISTING OF STOCKS

Supplementary Circular of Shenzhen Stock Exchange Concerning the Matters about the Equity Distribution of Listed Companies in the
Rules of Shenzhen Stock Exchange for the Listing of Stocks

Each listed company,

For the purpose of regulating the suspension or termination of the listing of stocks of listed companies and clarifying the explicit
requirements for the equity distribution of listed companies, relevant issues are hereby announced concerning the equity distribution
of listed companies as described in Subparagraph (4) of Article 14 .1.1 and Subparagraph (10) of Article 14 .3.1 in the Rules of
Shenzhen Stock Exchange for the Listing of Stocks (hereinafter referred to as the Rules for the Listing of Stocks) in accordance
with Article 19 .2 of the Rules for the Listing of Stocks:

1.

The circumstance that a listed company fails to meet the listing requirements any more due to alterations of equity distribution means
that: the shares held by the general public are not more than 25 percent of the total shares of the company; or are not more than
10 percent of the total shares of the company while the total stock capital of the company exceeds RMB 0.4 billion.

2.

The general public does not include:

(1)

a shareholder that holds 10 percent or more shares of a listed company as well as its coordinated actors; and

(2)

directors, supervisors, senior mangers of the listed company, as well as the related parties thereof.

3.

If a listed company has alterations of the equity distribution and then it does not satisfy the listing requirements any more for
20 successive trading days, the listing and trading of its shares shall be suspended by this Exchange. If the said company fails
to meet the listing requirements within 12 months as of the date when the listing and trading of its shares is suspended by this
Exchange, the listing and trading of its shares will be terminated by this Exchange. The said company can bring forward rectification
plans within the aforesaid period and resume the listing and trading of its shares after reporting to this Exchange for approval
so as to meet the listing requirements, nevertheless, a warning of delisting risk for the trading of its shares will be given. The
related operational procedures shall be governed by the related provisions in the Rules for the Listing of Stocks.

Please abide hereby.

Shenzhen Stock Exchange

August 30, 2006

 
Shenzhen Stock Exchange
2006-08-30

 



CIRCULAR OF THE MINISTRY OF CULTURE ON APPLICATION OF EXPORT SUBSIDIZATION PROJECT OF HOME-PRODUCED AUDIOVISUAL PRODUCTS OF 2006

Circular of the Ministry of Culture on Application of Export Subsidization Project of Home-produced Audiovisual Products of 2006

The Culture Departments at all provinces, autonomous regions and municipalities directly under the Central Government and the audiovisual
products export entities concerned:

For the purpose of carrying out the Going-Out Project of Chinese culture and facilitating the export of home-produced audiovisual
products, the Ministry of Finance and the Ministry of Culture have set up the Special Fund for the Export of Home-produced Audiovisual
Products to subsidize or reward the export of home-produced audiovisual products. Under the Measures for the Management of the Special
Fund for the Export of Home-produced Audiovisual Products (For Trial Implementation) and the budget of the Special Fund for the Export
of Home-produced Audiovisual Products 2006, the export subsidization project of home-produced audiovisual products of 2006 has been
officially started. The issues concerning the application of the Subsidization Project for the Special Fund for the Export of Home-produced
Audiovisual Products are hereby notified as follows:

1.

The management and practice of the Subsidization Project for the Special Fund for the Export of Home-produced Audiovisual Products
shall be implemented in accordance with the Measures for the Management of the Special Fund for the Export of Home-produced Audiovisual
Products (for Trial Implementation). The administrative departments throughout the country shall notify the entities concerned to
apply for the subsidy in time and the deadline is October 16, 2006. Any overdue application shall not be attended.

2.

The applying entities shall fill in the Application Form for the Project of the Special Fund for the Export of Home-produced Audiovisual
Products and submit the necessary materials, including the certifying document of the applying entity’s qualification, the certifying
document of the capacity to bring the project into effect, the feasibility study report of the project, the execution plan of the
project, the copyright certification documents and the other relevant materials.

3.

The Measures for the Management of the Special Fund for the Export of Home-produced Audiovisual Products (for Trial Implementation)
has been released at the website of China Culture Market(www.ccm.gov.cn). It can be found in the Exportation of Home-produced Audiovisual
Products Section on the Audiovideo Film Channel. Applicants can directly download the Project Application Form of the Special Fund
for the Export of Home-produced Audiovisual Products.

4.

Please report the application materials to the Culture Market Department of the Ministry of Culture

Address: No.10, Beidajie Rd., Chaoyangmen, Dongcheng District, Beijing

Zip code: 100020

Contact: Han Xianfeng, Liu Luping

Telephone :010-65551897￿￿65551898

Fax : 010-65551899

E-mail :hanxianfeng@ccm.gov.cn

The Ministry of Culture

September 7, 2006



 
The Ministry of Culture
2006-09-07

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE RECORD OF EXPORT CONTRACT

Circular of the State Administration of Taxation on Relevant Issues concerning the Record of Export Contract

Guo Shui Han [2006] No. 847

Bureaus of State Taxes in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially
designated in the State plan:

With the approval from the State Council, Circular on Readjusting the Export Rebate Rate for Some Commodities and Supplementing the
Prohibitive Catalog for Processing Trade (Cai Shui [2006] No. 139) was released by the Ministry of Finance, the Ministry of Commerce,
the National Development and Reform Commission, the State Administration of Taxation, the General Administration of Customs, prescribing
that the export rebate rate for some export goods shall be adjusted as of September 15, 2006, and that after an export contract concluded
with foreign parties before September 14, 2006 (including September 14, 2006) undergoes the formalities of record at the taxation
authorities within the prescribed period, and if the goods under this export contract hereof are exported within the prescribed period,
an export enterprise may continue to go through the formalities of export rebate in accordance with the pre-adjustment export rebate
rates. And a circular is hereby given on relevant issues concerning the record of export contract as follows:

Article 1

An export contract to be recorded as mentioned in this Circular refers to a contract in written from concluded in accordance with
the provisions in Article 11 of the Contract Law of the People’s Republic of China, and these conditions as follows shall be met
at the same time:

(1)

To be concluded before September 14, 2006 (including September 14, 2006);

(2)

To have clear indications of a contract conclusion date, export enterprise, foreign businessman, name of export commodities, unit
price, quantity, amount, contract serial number, etc.;

(3)

To have the signatures or seals from both the export enterprise and the foreign businessman, and an contract in written from concluded
in the form of data cable shall be printed by the export enterprise and signed or sealed by the person in charge of the enterprise
hereof;

(4)

The content of the contract shall be authentic and effective.

Article 2

An export enterprise shall, before September 30, 2006, submit the original copy of the contract bearing the seal of the enterprise
hereof in line with the provisions in Article 1 of this Circular and its duplicated copy (a clear indication to be given to be in
line with the original copy and signed by the person in charge of the export enterprise hereof), and the Application Form for Record
of Export Contracts (See Annex 1) to the local taxation authorities in charge of export rebate (hereinafter referred to as the taxation
authorities) for record.

Article 3

The taxation authorities at all levels shall timely handle the application of an export enterprise for record of the relevant export
contract, and carefully examine and verify it in accordance with the provisions in Article 1 and Article 2 of this Circular. After
the examination and verification, the export contract which is in line with the provisions shall be allowed to undergo the formalities
of record, and the original copy of the export contract hereof shall be returned to the export enterprise at the same time; and the
export contract which fails to be in line with the provisions shall uniformly not be allowed to undergo the formalities of record,
and be returned to the export enterprise.

Once an export contract undergoes the formalities of record, it shall bear no alteration.

Article 4

After an export enterprise enters out the goods under the aforesaid export contract, a separate indication shall be given when the
formalities of export rebate are undergone.

Article 5

The taxation authorities shall, when examining and approving the export rebate for the goods under the aforesaid recorded export
contract, emphatically examine and verify the main content and the content in relation to the actual export in the recorded export
contract besides examining and verifying routinely the documents which shall be provided by an export enterprise in accordance with
the current provisions. Where the goods are exported before December 14, 2006 (including December 14, 2006, and the date of export
in the Declaration Bill for Export Goods (exclusively used for export rebate) indicated by the customs authorities shall apply),
and the actually exported goods are in line with the export enterprise, foreign businessman, name of export commodity and other items
in the recorded export contract, the taxation authorities shall handle the formalities of export rebate in accordance with the pre-adjustment
export rebate rate; where any of the export enterprise, foreign businessman, name of export commodity etc. under the recorded export
contract bears alterations, the export goods within the recorded amount of this contract shall undergo the formalities of export
rebate in accordance with adjusted export rebate rate, and the excessively rebated funds shall be recovered by the taxation authorities.

The aforesaid recorded amount refers to the export amount of the export goods applying for being subject to the pre-adjustment export
rebate rate.

Article 6

Where an export contract of an export enterprise undergoes the formalities of record at the taxation authorities, and the amount
and quantity of the actually exported goods exceed the recorded amount and quantity in the recorded contract, the exceeded part shall
undergo the formalities of export rebate in accordance with the readjusted export rebate rate.

Article 7

Except the business of processing imported materials for re-export, the export businesses applying for export rebate in other modes
of trade shall be subject to the measures for record of export contract prescribed in this Circular.

Article 8

With regard to the export on consignment, the agreement on export on consignment concluded with a consignee enterprise of a consigner
enterprise shall undergo the formalities of record at the taxation authorities besides its export contract. Where an export contract
is concluded between a consignee and a foreign businessman, the consigner shall uniformly go through the formalities of contract
record.

Article 9

Once an export enterprise is detected to seek illegal interests by altering, counterfeiting and signing inversely the date and other
means, the taxation authorities shall not handle the formalities of export rebate for it, and the rebated or excessively rebated
funds shall be recovered, and a fine shall be given in accordance with the provisions in relevant laws and regulations.

Article 10

The export of coal shall undergo the formalities of record of export contract in accordance with the provisions in Article 1 .4.3
of the document coded Cai Shui [2006] No. 139.

Article 11

The taxation authorities at all levels shall do well the work of sorting and statistics of the recorded export contracts. The Bureaus
of State Taxes in all provinces (autonomous regions, municipalities directly under the Central Government and cities specially designated
in the State plan) shall, before October 31, 2006, report to the State Administration of Taxation (Department of Import and Export
Duties and Taxes) in written form the record of contracts of this time and the Statistical Form for Record of Export Contracts (Annex
2, excluding coal export).

Annexes

1.

Application Form for Record of Export Contracts (omitted)

2.

Statistical Form for Record of Export Contracts (omitted)

State Administration of Taxation

September 14, 2006



 
State Administration of Taxation
2006-09-14

 






OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE PRE-INCOME-TAX DEDUCTION OF HOUSE SUBSIDIES OF THE EMPLOYEES IN FOREIGN-FUNDED ENTERPRISES SUCH AS AMECO BEIJING

Official Reply of the State Administration of Taxation concerning the Pre-Income-Tax Deduction of House Subsidies of the Employees
in Foreign-funded Enterprises Such as Ameco Beijing

Guo Shui Han [2006] No. 867

The State Taxation Bureau of Beijing Municipality:

We have received your Request for Instructions on the Pre-Income-Tax Deduction of House Subsidies of the Employees in Foreign-funded
Enterprises Such as Ameco Beijing (Jing Guo Shui Fa [2006] No. 177). We hereby give a reply as follows:

Ameco Beijing is a joint venture established through joint investment of Air China and Lufthansa German Airlines. In accordance with
the company’s Constitution as modified in 2004 and in view of its achievements as well as the contribution which is made by its employees,
both the Chinese and Foreign parties shareholders agree, given that shareholders can obtain reasonable returns by their contributions
in the registered capital within a profit-making year of the company, to provide to the Chinese employees of the company a one-off
welfare subsidy of 0.34 billion yuan with a distribution term of 10 years with a view to reducing any extra financial burden of the
Company wherever possible. In accordance with the aforesaid provisions of the Constitution of Ameco Beijing, it instituted an Implementation
Plan of Ameco for Monetized Distribution of Houses so as to distribute the house subsidies in cash to those employees who have not
enjoyed the welfare houses or whose houses have not met the standards prescribed by the company, as well as instituted the specific
norms and payment plan with a term of 10 years. The Housing Reform Office of Beijing Municipal People’s Government has approved the
Implementation Plan of Ameco for Monetized Distribution of Houses. In accordance with Article 24 of the Detailed Rules for the Implementation
of the Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises as well as
the Circular of the State Administration of Taxation Concerning the Follow-up Control of Certain Income Tax Treatment of Enterprises
with Foreign Investment and Foreign Enterprises After Lifting the Examination and Approval Procedure for Such Treatment (Guo Shui
Fa [2003] No. 127), the house subsidies in cash as actually distributed by Ameco Beijing subject to the provisions of its Constitution
as well as the resolution of its board of directors can be taken as the salary remuneration of employees and be deducted from the
taxable income of the company in the corresponding period. For the said salary remuneration, the related individual income taxes
shall be levied in accordance with the related provisions. Beijing Air Catering Co., Ltd., which is under the same circumstance,
can enjoy the same treatment as mentioned above.

The State Administration of Taxation

September 22, 2006



 
The State Administration of Taxation
2006-09-22

 






SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON IMPLEMENTING RECORD-KEEPING ADMINISTRATION SYSTEM OF RELEVANT DOCUMENTS FOR TAX REFUND (EXEMPTION) ON EXPORTED GOODS

Supplementary Circular of the State Administration of Taxation on Implementing Record-keeping Administration System of Relevant Documents
for Tax Refund (Exemption) on Exported Goods

Guo Shui Han [2006] No. 904

State Taxation bureaus in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially
designated in the state plan:

In response to the problems reflected after the release of (Interim) Circular of the State Administration of Taxation on Implementing
Record-Keeping Administration System of Relevant Documents for Tax Refund (Exemption) on Exported Goods (Guo Shui Fa [2005] No. 199,
hereinafter referred to as the Circular), after research, a supplementary circular is hereby given as follows:

1.

Documents to be put on file as mentioned in Article 1 of the Circular, mainly refer to documents prescribed in the Contract Law of
the People’s Republic of China or documents stipulated by competent authorities on export trade. Considering that names of documents
to be put on file of some enterprises may be not fully consistent with that stipulated in the Circular, therefore, the appendix to
the Circular, Descriptions to Recording-Keeping of Relevant Documents for Tax Refund (Exemption) on Exported Goods has given a description
of the implications, functions, effects and so on and so forth of relevant documents to be put on file, so that record-keeping administration
in all localities may be carried out in accordance with the principles thereof. Where export enterprises fail to submit documents
to be put on file as is stipulated in the Circular, documents of similar contents or effects shall be provided as documents to be
put on file. Nonetheless, export enterprises that are to put documents on file for the first time shall present grounds in a written
way and furnish formalities of relevant documents to competent tax authorities before they commit record-keeping. Bureaus of State
Taxation in all provinces, autonomous regions, municipalities directly under the Central Government and cities specially designated
in the State plan may also formulate, in light of de facto local conditions, specific provisions on administration of documents to
be put on file in accordance with the rules and principles prescribed in the Circular.

2.

The annex to the Circular, Descriptions to Recording-Keeping of Relevant Documents for Tax Refund (Exemption) on Exported Goods requires
that the “shipping orders of exported goods” have signatures of the Customs. Considering that it is difficult for export enterprises
to secure “shipping orders of exported goods” signed by the Customs, in practical work, provided the “shipping orders of exported
goods” to be put on records of export enterprises are in line with the implications of the Circular, signatures by the Customs shall
not be a prerequisite.

3.

Where documents to be put on file of export enterprises are in the form of electronic data or paperless data, record-keeping can be
taken in two methods:

(1)

Where paperless contracts such as electronic contracts and parol contracts instead of purchase and sale contracts in written form
are concluded by export enterprises, provided they are in accordance with the provisions of the Contract Law of the People’s Republic
of China, electronic contracts shall be printed by export enterprises, parol contracts shall be recorded in written form, be signed
by the handling person to indicate consistency with the facts and be affixed with official seals of enterprises for record.

As for record-keeping of other kinds of documents, in case export enterprises fail to secure paper documents or enterprise self-made
electronic documents on account of the adoption of paperless administration by competent state administrative authorities, export
enterprises may print pertinent electronic data into paper documents, affix them with official seals of enterprises and sign to indicate
the consistency of the printed documents with the original electronic data.

(2)

Aside from parol contracts, as for electronic purchase and sale contracts concluded by export enterprises, documents under paperless
administration by competent state administrative authorities and enterprise self-made electronic documents, export enterprises may
carry out electronic documents record-keeping administration upon application in written form which must be approved by competent
tax authorities, namely, export enterprises may put relevant documents on file in form of electronic documents. Export enterprises
shall guarantee the authenticity of electronic documents on file, back up relevant electronic data in a regular way and, when tax
authorities take documents to be put on file for inspection in accordance with rules and regulations, shall, in response to the requirements
of the said authorities, provide electronic data or paper documents, that is, printed electronic documents affixed with official
seals of enterprises.

4.

As regards businesses of special tax refund policies without involving export of goods, tax refund of the domestic equipment purchases
of enterprises with foreign investment, tax refund of bid-wining electromechanical products, tax refund of power and gas in export
processing zone, for instance, record-keeping administration system of documents shall not be implemented temporarily.

5.

Where documents to be put on file are incomplete after the release of the Circular, export enterprises shall make up for it in accordance
with the provisions of the supplementary circular herein before November 30, 2006.

State Administration of Taxation

September 30, 2006



 
State Administration of Taxation
2006-09-30

 






CIRCULAR OF MINISTRY OF COMMERCE ON IMPLEMENTING THE THOUSAND-HUNDRED-TEN PROJECT OF SERVICE OUTSOURCING

Circular of Ministry of Commerce on Implementing the “Thousand-Hundred-Ten Project” of Service Outsourcing

Shang Zi Fa [2006] No.556

Service outsourcing industry, as an integral part of modern high-end service industry, is characterized by large bearing capacity
of information technology, high added value, small consumption of natural resources, little environmental pollution, abundant employment
opportunities (esp. for college graduates) and high level of internationalization, etc. The world is now witnessing the rise of a
new round of worldwide industrial restructuring featuring service outsourcing, service trade, high-end manufacturing and the transfer
of technological research and development, which brings new opportunities to the development of China’s modern service industry oriented
towards the international market. To seize the opportunities and develop international offshore outsourcing business are conducive
to the shift of the growth mode of foreign trade, expansion of the export of knowledge-intensive service, optimization of the mix
of foreign investment and elevation of the quality and level of utilization of foreign investment.

In accordance with the requirements in the Outline of the Eleventh Five-Year Plan for National Economic and Social Development, i.e.
to accelerate the shift of the growth mode of foreign trade￿￿￿￿develop some bases of service outsourcing and well prepare for the
transfer of international service industry, Ministry of Commerce decides to implement the “Thousand-Hundred-Ten Project” of Service
Outsourcing for the purpose of promoting the development of service outsourcing industry, optimizing the export structure and expand
the export of service. The objectives and main policies of the “Thousand-Hundred-Ten Project” of Service Outsourcing are as follows:

I.

The Objectives of the “Thousand-Hundred-Ten Project” of Service Outsourcing:

During the Eleven Five-Year Plan period, efforts shall be made to develop 10 base cities of service outsourcing with international
competitiveness, promote 100 well-known transnational corporations to transfer their service outsourcing businesses to China and
cultivate 1000 large and medium-sized service outsourcing enterprises with international qualification. Favorable conditions will
be created to accept international offshore service outsourcing businesses in an all-round way, increase the value of service and
quadruple the export volume of service outsourcing of the year 2005 by 2010.

“Service outsourcing enterprises” in the present circular refer to service outsourcing providers who provide service outsourcing to
customers according to the long and medium term service contracts signed with service outsourcing initiators; “service outsourcing
businesses” refers to information technology outsourcing (ITO) and business process outsourcing (BPO) provided for customers by service
outsourcing enterprises, which include: outsourcing of applied commercial process, e.g. business reform, business process and process
service, applied administration and service, and outsourcing of fundamental technologies (IT, software development and design, technological
research and development, integration of fundamental technological platform and of management), etc; “international offshore outsourcing”
refers to service outsourcing enterprises conducting service outsourcing business with overseas customers.

II.

Implement the Talent Training Plan of the “Thousand-Hundred-Ten Project” of Service Outsourcing

1.

Allocate special funds for public training of service outsourcing from business talent training funds and implement the talent training
plan of the “Thousand-Hundred-Ten Project” of Service Outsourcing.

2.

Special funds for public training of service outsourcing are used to help college graduates (junior college graduates included, sic
passim) enhance their expertise and techniques of service outsourcing, encourage service outsourcing enterprises to conduct various
training programmes oriented towards newly added posts, with the new graduates, graduating students and newcomers in service outsourcing
enterprises as the major trainees, for the purpose of training 300000-400000 talents much needed for accepting service outsourcing
businesses, creating job opportunities for 200000-300000 college graduates and effectively solve the problems of talent shortage
in service outsourcing industry and of employment of college graduates.

3.

The training of service outsourcing shall include: training of specialties, qualification, international authentication, occupational
standards and intellectual property rights, internship and work-study program for college graduates, pre-job technical training for
newcomers in the enterprises and for talent reserve in this industry, etc.

The specific plans of the “Thousand-Hundred-Ten Project” of service outsourcing shall be implemented in accordance with the Circular
of Ministry of Commerce on Fulfilling the Work of Talent Training in the “Thousand-Hundred-Ten Project” of Service Outsourcing (Appendix
I).

III.

Support the Service Outsourcing Enterprises to Expand and Upgrade

1.

Encourage the service outsourcing enterprises to be authenticated internationally. According to the Circular of Ministry of Commerce
on Fulfilling the Work of Enterprise Authentication and Market Development of the “Thousand-Hundred-Ten Project” of Service Outsourcing
(Appendix II), service outsourcing enterprises which have met the requirements and obtained international authentication will be
granted some rewards and effective measures will be taken to support the maintenance and upgrading of the authentication with a view
to helping 700 enterprises obtaining CMM/CMMI3 Authentication and 300 CMM/CMMI5 Authentication in 5 years. The international authentications
include: Development Capability Maturity Model Integration (CMMI), Development Capability Maturity Model (CMM), People Capability
Maturity Model (PCMM), Information Security Management Standards (ISO27001/BS7799), IT Service Management (ISO20000), Service Provider
Environment Security (SAS70).

2.

Provide policy-based loans and other services for the development of service outsourcing enterprises. China Development Bank will,
in cooperation with Ministry of Commerce, grant policy-based loans for service outsourcing enterprises which meet the related requirements
to purchase equipment, build office facilities, conduct service outsourcing business, develop international market and expand export,
etc. China Export & Credit Insurance Corporation will, in cooperation with Ministry of Commerce, provide credit insurance and
other insurance services and assist service outsourcing enterprises in establishing credit risk management mechanism.

3.

Support service outsourcing enterprises to develop international market and accept international offshore service outsourcing businesses.
Provide financial support to service outsourcing enterprises which meet the requirements to develop international market in accordance
with Measures for the Administration of Funds for the Development of International Market of Small and Medium-Sized Enterprises.

IV.

Build “China Base Cities of Service Outsourcing”

1.

Ministry of Commerce and Ministry of Information Industry will select a series of central cities with the foundation and developing
potential of service outsourcing as “China Base Cities of Service Outsourcing” (hereinafter referred to as “base cities”) and facilitate
their development from various aspects, such as macropolicy, plan and design, personnel training, investment invitation and comprehensive
coordination, etc. Special funds will be established to subsidize the development of the base cities. The building of “China Base
Cities of Service Outsourcing” shall be carried out in accordance with Circular of Ministry of Commerce and Ministry of Information
Industry on Relevant Issues on Qualification of “China Base Cities of Service Outsourcing” (Appendix III).

2.

China Development Bank will, in cooperation with Ministry of Commerce, grant policy-based loans to the base cities for their construction
of public service platform of technical support for service outsourcing, public information network, infrastructure and investment
environment. The construction of public service platform shall focus on providing public services such as technological research
& development, quality assurance and testing, demonstration, validation, training, programme management and protection of intellectual
property rights, and construction of infrastructure and investment environment shall cover the shared facilities of data storage,
information transmission, power guarantee and logistic support.

V.

Establish China Public Service Platform of Information in Service Outsourcing

Ministry of Commerce will initiate the establishment of China public service website for information in service outsourcing, with
the support of all base cities, transnational corporations, enterprises and well-known institutions in service outsourcing and other
research units. It aims at providing various information of service outsourcing and establishing a business transaction platform
for service outsourcing enterprises, foreign and domestic service outsourcing initiators, government departments, research institutions,
higher education institutions and (junior) college graduates, and it will provide public services for headhunting of service outsourcing
enterprises and job seeking of (junior) college graduates. Publicity activities will be enhanced to create a favorable image of “Service
of China”.

VI.

Encourage and Support the Central-Western Region to Develop Service Outsourcing Business

Give full scope to the human resources advantage of the Central-Western region and Northeast China and other old industrial bases
and give priority to the cities in the Central-Western region with relatively more higher education institutions in the work of base
cities approving and relax the requirements for approval if necessary; take effective measures to encourage the strategic cooperation
between base cities in Eastern China and in Central-Western region; subsidize the state level economic and technological development
zones in Central-Western region for their interest payment of loans granted for the infrastructure construction and improvement of
investment environment.

VII.

Improve the System of Intellectual Property Right Protection in Service Outsourcing

Establish intellectual property right complaint centre in base cities, crack down on various infringement acts and intensify the protection
of intellectual property rights; all base cities shall, based on the special needs of the service outsourcing industry, further improve
the system of laws and regulations of intellectual property right protection, formulate rules of secrecy for data of service outsourcing,
establish the system of comprehensive evaluation of intellectual property right protection in service outsourcing industry and create
a favorable atmosphere which values honesty.

VIII.

Promote Investment in Service Outsourcing Industry

Formulate a investment promoting policy with the knowledge of the latest development in service outsourcing industry and the experience
of other countries, and raise China’s international competitiveness in accepting service outsourcing business; promote investment
in service outsourcing industry under the guidance of Ministry of Commerce and with overall planning; give full scope to the influence
of China Council for International Investment Promotion, Investment Promotion Agency of Ministry of Commerce and local investment
promotion agencies, work out special working plans and promote transnational corporations to transfer their service outsourcing business
with considerable scale to China through diversified order services.

IX.

Well Carry out the Statistic Work of Service Outsourcing Industry

Further improve the existing service trade statistic system, incorporate international offshore service outsourcing business into
the scope of service trade statistics and establish scientific, all-round and systematic full caliber statistic norms of service
outsourcing; Ministry of Commerce will enhance the connection with the competent departments of commerce at various levels to establish
efficient data collecting channels, keep abreast of the implementation situation of the “Thousand-Hundred-Ten Project” of service
outsourcing and evaluate the work results.

With common understanding, the competent departments of commerce at various levels shall attach great importance to the “Thousand-Hundred-Ten
Project” of service outsourcing and create a good environment for the development of the service outsourcing industry based on the
local realities. Problems found out in the process of implementation shall be timely reported to the Ministry of Commerce.

Appendix I: Circular of Ministry of Commerce on Fulfilling the Work of Talent Training in the “Thousand-Hundred-Ten Project” of Service
Outsourcing(omitted)

Appendix II: Circular of Ministry of Commerce on Fulfilling the Work of Enterprise Authentication and Market Development of the “Thousand-Hundred-Ten
Project” of Service Outsourcing(omitted)

Appendix III: Circular of Ministry of Commerce and Ministry of Information Industry on Relevant Issues on Qualification of “China
Base Cities of Service Outsourcing” (omitted)

Ministry of Commerce, People’s Republic of China

October 16, 2006



 
Ministry of Commerce
2006-10-16

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING AMENDMENT OF THE ORGANIC LAW OF THE PEOPLE’S COURTS OF THE PEOPLE’S REPUBLIC OF CHINA

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

No. 59

The Decision of the Standing Committee of the National People’s Congress concerning Amendment of the Organic Law of the People’s Courts
of the People’s Republic of China, has been passed at the 24th meeting of the Standing Committee of the 10th National People’s Congress
of the People’s Republic of China on October 31, 2006. It is hereby promulgated and shall enter into force as of January 1, 2007.

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

October 31, 2006

Decision of the Standing Committee of the National People’s Congress concerning Amendment of the Organic Law of the People’s Courts
of the People’s Republic of China

(Passed at the 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
October 31, 2006)

At the 24th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China, the Organic
Law of the People’s Courts of the People’s Republic of China is amended as follows:

Article 13 is amended as: All death sentences, expect for those adjudicated by the Supreme People Court in accordance with law, shall
be reported to the Supreme People’s Court for check and approval.

The Decision shall be carried out since January 1, 2007.

According to this Decision, the Organic Law of the People’s Courts of the People’s Republic of China shall be amended, and be re-promulgated
after the adjustment of the articles’ sequence.



 
The Standing Committee of the National People’s Congress
2006-10-31

 






1...707172...83Page 71 of 83

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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