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CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE PROTOCOL II ON THE AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA ON THE AVOIDANCE OF DOUBLE TAXATION AND GETTING PREPARED FOR ITS IMPLEMENTATION

The State Administration of Taxation

Circular of the State Administration of Taxation on Printing and Distributing the Protocol II on the Agreement between the Government
of the People’s Republic of China and the Government of the Republic of Korea on the Avoidance of Double Taxation and Getting Prepared
for Its Implementation

Guo Shui Fa [2006] No. 52

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

The Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea
on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income was formally concluded in Beijing
on March 23, 2006. This Protocol shall come into force after both contracting states have completed their respective legal procedures.
The text of this Protocol is hereby printed and distributed to you. Please make good preparations for its implementation.

Annex: Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of
Korea on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income

The State Administration of Taxation

April 5, 2006 Annex:Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea
on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income

As for the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea on the Avoidance
of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income which was signed in Beijing on March 28, 1994 (hereinafter
referred to as the Agreement), the Government of the People’s Republic of China and the Government of the Republic of Korea agree
to regard the following provisions as an integral part of the Agreement:

Article 1

As for Article 1 of this Agreement, both the contracting states agree that this Agreement does not apply to such a company, trust
or any other entity, if a company or trust or any other entity is a resident of a contracting state, if it is owned or controlled
by one or more direct or indirect beneficiaries who are not residents of this contracting state, and if the tax imposed by this contracting
state on the income of this company, trust or any other entity (after considering the tax amount to be reduced or offset by any means,
including the tax refund, reimbursement, donation, offset, deduction or exemption), the revenue of this contracting state has reduced
substantially in comparison with all shares of the capital stock of the company or all equities of the trust or any other entity
(depending on the corresponding circumstances) which benefit and are owned by one or more residents of this contracting state. However,
if 90% or more of the income completely comes from active trade or business operation other than investment, the aforesaid provisions
shall not apply.

Article 2

The “Korea taxes” as mentioned in Article 2 of the Agreement shall be deemed as including the special tax for rural development which
is a surtax directly or indirectly collected by Korea on the tax base of the income tax or corporation tax.

Article 3

Paragraph 7 of Article 11 of the Agreement shall be deleted and replaced by the following paragraph:

“7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person,
the amount of the interest payment exceeds the amount of what would have been agreed upon by the payer and the beneficial owner in
the absence of such special relationship, the provisions of this Article shall apply only to the last-mentioned amount. Under this
circumstance, the excessive part of the payment shall remain taxable according to the laws of each contracting state, with due attention
being given to the other provisions of the Agreement.”

Article 4

Paragraph 1 of Article 23 in the Korea text of the Agreement and paragraph 2 of Article 23 in the Chinese text shall be deleted
and replaced by the following paragraphs:

“In the event of a resident of Korea, double taxation shall be avoided as follows:

According to the provisions of Korean tax law which regulates that any tax payable in any country other than Korea is allowed to be
credited against the taxes payable in Korea (on condition that it shall not affect the general principle of the Agreement):

(a)

The Chinese taxes payable (excluding, in the case of dividend, tax payable in respect of profits out of which the dividend is paid),
whether directly paid or withheld, in respect of the income sourced within China shall be allowed to credit against Korean taxes
payable in respect of that income according to the laws of China and the provisions of the Agreement. However, the credit shall not
exceed the proportion of Korean taxes payable for the income sourced within China against the entire income subject to Korean tax.

(b)

With regard to a dividend paid by a Chinese resident company to a resident company of Korea, if the Korea company owns not less than
10 percent of the shares of the Chinese company that pays the dividend, the credit shall take into account the Chinese taxes paid
by the company that pays the dividend in respect of its income (except for the circumstance that any Chinese tax is allowed to be
credited in accordance with Item (a) of this paragraph. “

Article 5

1.

Paragraph 3 of Article 23 of the Agreement shall be deleted and replaced by the following Paragraph, which shall cover a 10-year
period as of January 1, 2005:

“3. The taxes payable in a contracting state as mentioned in paragraph 1 (a) and paragraph 2 of this Article shall be deemed to include
the tax which would have been payable but is not paid as a result of tax reduction, exemption or other tax incentives as stipulated
by the provisions of the contracting state for promoting economic development. For the purpose of this paragraph, the amount of tax
shall be deemed to be 10 per cent of the total amount of the dividends, interest and royalties respectively according to paragraph
2 of Article 10 , paragraph 2 of Article 11 and paragraph 2 of Article 12 .”

2.

Paragraph 4 of Article 23 shall be deleted.

Article 6

In despite of the provisions of paragraph 3 of Article 23 , if the income that a resident of a contracting state obtains from the
other contracting state falls within the scope of income as mentioned in this paragraph, and if the competent authorities of a contracting
state considers that this resident shall not enjoy the benefits as described in paragraph 3 of Article 23 after consulting with
the other contracting state and taking the following provisions into consideration, this resident shall be deemed to have paid the
tax on the aforesaid income:

(a)

Whether or not a person makes any arrangement by making use of paragraph 3 of Article 23 of the Agreement for the benefits of his
own or any other person; or

(b)

Whether or not any benefit falls or may possibly fall on a person who is neither a resident of a contracting state nor of the other
contracting state;

(c)

The prevention of tax evasion and cheating of taxes to which the Agreement applies.

Article 7

Both contracting states shall, through the diplomatic channel, notify each other of the completion of legal procedures to be completed
for the entry into force of Protocol II. The Protocol II shall come into force as of the date of the last notice issued by any of
the contracting states.

In witness whereof the undersigned, duly authorized thereto by their respective governments, have signed this Agreement.

The Protocol II is signed in duplicate in Beijing on March 23, 2006 in Chinese, Korean and English, with all texts being equally authentic.
In case of any divergence of interpretation, the English text shall prevail.

For the Government of the People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿ For the Government of the Republic of Korea



 
The State Administration of Taxation
2006-04-05

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE INTELLECTUAL PROPERTY OFFICE ABOUT THE RELEVANT ISSUES ON STRENGTHENING THE ADMINISTRATION OF INTELLECTUAL PROPERTY ASSET ASSESSMENT

Ministry of Finance, State Intellectual Property Office

Circular of the Ministry of Finance and the State Intellectual Property Office about the Relevant Issues on Strengthening the Administration
of Intellectual Property Asset Assessment

Cai Qi [2006] No. 109

April 19, 2006

The departments (bureaus) of finance and the intellectual property offices of all provinces, autonomous regions, municipalities directly
under the Central Government and the cities specifically designated in the state plan:

For the purpose of strengthening the administration of intellectual property asset assessment, regulating the intellectual property
assessment and making the intellectual property assessment better serve the innovation economic construction and the intellectual
property protection of the State, in accordance with the Company Law of the People’s Republic of China, the Patent Law of the People’s
Republic of China, the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, the
Guarantee Law of the People’s Republic of China, the Measures for the Administration of State-owned Assets Assessment and other relevant
provisions, the notice on the relevant issues about the administration of intellectual property assessment is hereby circulated as
follows:

I.

If an entity having the intellectual property meets any of the circumstances as follows, it shall implement the asset assessment:

(1)

In the light of Article 27 of the Company Law, where the intellectual property is contributed for establishing a limited liability
company or joint stock company;

(2)

Where the intellectual property is pledged, there is no reference price in the market and the pledgee requires the assessment;

(3)

Where an administrative entity auctions off, transfers or replaces the intellectual property;

(4)

Where a public institution implements the restructuring, merger, split-up, liquidation, investment, transfer, replacement or auction,
which involves the intellectual property;

(5)

Where a state-owned enterprise implements the restructuring, merger, split-up, liquidation, investment, transfer, replacement, auction
or debt repayment which involves the intellectual property;

(6)

Where a state-owned enterprise purchases or obtains by replacement the intellectual property of non-state-owned entity, or accepts
the capital contributions of non-state-owned entity in the form of intellectual property;

(7)

Where a state-owned enterprise approves the foreign company, enterprise or other economic organizations or individuals to use its
intellectual property, and there is no reference price in the market;

(8)

Where the people’s court, the arbitral body or the party requires the assessment when the lawsuit value of the intellectual property
involved is determined; or

(9)

Other matters prescribed by the laws and administrative regulations, for which the asset assessment is needed.

Where a non-state-owned enterprise implements the merger, split-up, liquidation, investment, transfer, replacement, debt repayment
or any other economic act refers to the intellectual property, the asset assessment may be implemented by referring to the state-owned
enterprises.

II.

An asset assessment institution established based on approval of the department of public finance shall be entrusted for the intellectual
property assessment.

An asset assessment institution shall implement the intellectual property assessment strictly according to the relevant rules and
standards for asset assessment, and shall take into account the peculiarities of the intellectual property and scientifically and
objectively analyze the feasibility and rationality of the anticipatory proceeds of the intellectual property during the course of
assessment.

When carrying out the intellectual property assessment, an asset assessment institution may employ the experts in the aspects of patent,
trademark, copyright and etc. to assist in the work, but the legal liabilities of the asset assessment institution and its certified
asset assessors can not thus be mitigated or exempted.

III.

The Ministry of Finance and the State Intellectual Property Office will jointly organize the professional trainings on intellectual
property assessment, implement the examination and issue the certificates of training, establish and strictly enforce the system
of continuous education and training examination, for ensuring the quality of trainings and continuously enhancing the professional
intellectual property assessment capacity and level of certified asset assessors and other professionals.

IV.

China Appraisal Society shall strengthen the industrial self-discipline and the professional guidance, may establish a database of
intellectual property assessment experts and other relevant professional committees, establish and improve the intellectual property
database, and create a necessary platform for intellectual property assessment, so as to enhance the practicing quality of asset
assessment, industrial credibility and influences.

V.

An asset assessment institution shall insist on the principles of independence, objectiveness and fairness, and shall not undertake
the business of intellectual property assessment by overestimating or underestimating the intellectual property, giving “kickbacks”,
maliciously forcing down the price or any other unjustifiable means so as to cater to the entrusting party.

Supervision and examination on the practicing quality of asset assessment institutions that engage in the business of intellectual
property assessment shall be regularly organized by the Ministry of Finance and the State Intellectual Property Office.

VI.

Any of entities or individuals may not intervene in the business of intellectual property assessment or the assessment conclusion
illegally.

VII.

In case a state-owned entity having the intellectual property or an asset assessment institution engaging in the business of intellectual
property assessment violates the aforesaid provisions, it shall be punished in accordance with the relevant provisions of the State.

If there is any former relevant provision conflicting with the provisions in this Notice, the latter shall prevail after this Notice
is promulgated.



 
Ministry of Finance, State Intellectual Property Office
2006-04-19

 






PROVISIONS OF THE SUPREME PEOPLE’S COURT ABOUT SEVERAL ISSUES ON THE APPLICATION OF THE COMPANY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (I)

the Supreme People’s Court

Announcement of the Supreme People’s Court of the People’s Republic of China

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I) adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006, are hereby promulgated
and shall enter into effect as of the day of May 9, 2006.

the Supreme People’s Court of the People’s Republic of China

April 28, 2006

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I)

(Adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006 Fa Shi [2006] No. 3)

In order to correctly apply the Company Law of the People’s Republic of China amended at the 18th session of the Standing Committee
of the Tenth National People’s Congress on October 27, 2005, the concrete application of the Company Law by the people’s courts in
the hearing of relevant civil disputes are formulated as follows:

Article 1

If the civil act or event involved in a undecided case of the people’s court or a case newly accepted by the people’s court but which
occurred prior to the implementation of the Company Law, after the Company Law is brought into effect, the laws, regulations and
judicial interpretations effective at that time shall apply to the case.

Article 2

Where a lawsuit is brought to the people’s court prior to the implementation of the Company Law because of the disputes over any civil
act or event, if there is no clear provision in the effective laws, regulations or judicial interpretations at that time, such case
shall be dealt with in the light of the relevant provisions of the Company Law.

Article 3

When a lawsuit is lodged to the people’s court by the plaintiff for either of the reasons mentioned in Paragraph 2 of Article 22
and Paragraph 2 of Article 75 of the Company Law and if it exceeds the time limit as prescribed in the Company Law, the people’s
court shall reject it.

Article 4

The expression “180 consecutive days or more” mentioned in Article 152 of the Company Law shall be a full share-holding period when
the shareholder(s) initiate(s) a lawsuit to the people’s court. The expression “aggregately holding 1% or more of the total shares
of the company” means the aggregate of the shares, which is held by two or more shareholders.

Article 5

The Company Law shall not apply to the review of a case, which a final judgment has been made by the people’s court before the implementation
of the Company Law.

Article 6

These Provisions shall enter into effect as of the day of the promulgation.



 
the Supreme People’s Court
2006-04-28

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 36 – DISCLOSURE OF AFFILIATED PARTIES

Accounting Standards for Enterprises No. 36 – Disclosure of Affiliated Parties

Cai Kuai [2006] No. 3
February 15, 2006
Chapter I General Provisions

Article 1

With a view to regulating the disclosure of information about affiliated parties and transactions among them, these Standards are
formulated in accordance with Accounting Standards for Enterprises – Basic Standards.

Article 2

An enterprise shall, in its financial statements, disclose the related information about all affiliated party relationships and the
transactions among them. If it offers consolidated financial statements to outsiders, it is not required to disclose the transactions
among the enterprises that have been included in the scope consolidation, but it shall disclose the affiliated party relationships
and transactions beyond the scope of consolidation.

Chapter II Affiliated Parties

Article 3

When a party controls, jointly controls or exercises significant influence over another party, or when two or more parties are under
the control, joint control or significant influence of the same party, the affiliated party relationships are constituted.

The term “control” means having the power to decide an enterprise’s financial and operating policy and obtains benefits from its business
activities.

The term “joint control” means control over an economic activity as specified by contract, which exists only when the investing parties
that need to share the power of control in important financial and operating decision-making agree unanimously.

The term “significant influence” means having the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control or jointly control the formulation of these policies together with other parties.

Article 4

The following parties constitute the affiliated parties of an enterprise:

(1)

The parent company thereof;

(2)

The subsidiaries thereof;

(3)

Other enterprises under the control of the same parent company thereof;

(4)

The investors having joint control over the enterprise;

(5)

The investors having significant influence thereon;

(6)

The joint ventures thereof;

(7)

The associated enterprises thereof;

(8)

The main individual investors and the close family members thereof. A main individual investor refers to an individual investor who
can control or jointly control an enterprise, or has significant influence thereon; and

(9)

Key managerial personnel of the enterprise or of its parent company and the close family members thereof. Key managerial personnel
refer to those who have the power of and responsibility for planning, directing and controlling the activities of the enterprise.
The close family members of a main individual investor or of a key managerial person refer to the family members who may influence
or be influenced by that individual in handling transactions with the enterprise.

(10)

Other enterprises the main individual investors, key managerial personnel, or close family members of such individuals control, jointly
control or have significant influence over .

Article 5

Where one party has the following relationship with one enterprise, it is not an affiliated party thereof.

(1)

The capital providers, public utility units, government departments and organs which have normal dealings therewith;

(2)

A single customer, supplier, franchiser, distributor or agent with whom an enterprise transacts a significant volume of business
by virtue only of the resulting economic dependence; and

(3)

The joint venture operators which jointly control a joint venture therewith.

Article 6

Enterprises shall not be regarded as affiliated parties simply because they are all under the control of the state.

Chapter III Affiliated Party Transaction

Article 7

The term “affiliated party transaction” refers to an event whereby a transfer of resources, labor services or obligations takes place
between affiliated parties, irrespective of whether money is charged.

Article 8

The types of affiliated party transaction usually include as follows:

(1)

Purchases or sales of goods;

(2)

Purchasing or selling assets other than goods;

(3)

Rendering or receiving labor services;

(4)

Guarantying;

(5)

Providing capital (including loans or equity contributions);

(6)

Leasing;

(7)

Agency;

(8)

Transfer of research and development projects;

(9)

License agreements;

(10)

Settling debts on behalf of an enterprise or by this enterprise that represents another party; and; and

(11)

The emoluments for key managerial personnel.

Chapter IV Disclosure

Article 9

An enterprise shall, in the annotations to the financial statements, disclose the following information about the parent company
and subsidiaries thereof, irrespective of whether there have been transactions between them:

(1)

The names of the parent company and subsidiaries thereof

Where the parent company is not the ultimate controlling party of the enterprise, it shall disclose the name of the ultimate controlling
party.

Where neither the parent company nor the ultimate controlling party provides the financial statements to outsiders, it shall disclose
the name of the parent company which is its closest superior parent company providing financial statements to outsiders.

(2)

The nature of business, name, place of registration, and registered capital (or actually paid-in capital, stock capital) and changes
therein of the parent company and its subsidiaries; and

(3)

The proportion of shares or voting rights held by the parent company in this enterprise or by this enterprise in its subsidiaries.

Article 10

Where there have been transactions between an enterprise and its affiliated parties, it shall disclose the nature of the affiliated
party relationships, the types of transactions and the elements of transaction in the annotations. The elements of transaction shall
at least include:

(1)

the amount of transactions,

(2)

the amounts, terms and conditions of outstanding items, and the information about the guaranties granted to others or obtained,

(3)

the amounts of provisions for non-performing debts under outstanding items, and

(4)

price policies.

Article 11

Affiliated party transactions shall be disclosed on the basis of the affiliated parties and the types of the transactions involved.

The affiliated party transactions of similar types may be disclosed in aggregate in case that it does not affect readers’ correct
understanding of the financial statements.

Article 12

No enterprise may disclose an affiliated party transaction as a fair transaction unless it provides exact proofs.



 
Ministry of Finance
2006-05-15

 






REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT THE ISSUE OF COLLECTING THE FEES FOR THE USE OF MINING AREAS FOR THE CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF LAND OIL RESOURCES

Reply of the State Administration of Taxation about the Issue of Collecting the Fees for the Use of Mining Areas for the Chinese-foreign
Cooperative Exploitation of Land Oil Resources

Guo Shui Han [2006] No. 500

The Bureau of Local Taxation of Sichuan Province,

Your Request for the Instructions about the Fee Collecting Organ for the Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Chuan Di Shui Fa [2006] No. 37 ) has been received, and upon study, the reply is hereby given as follows:

Both the Chuanzhong Regional Cooperative Oil Field and the Zitong Regional Cooperative Oil Field in Sichuan Basin in your province
are land oil cooperative projects, in accordance with the relevant provisions in the Notice of the Ministry of Finance on the Relevant
Budgetary Management of the Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil
Resources (Cai Yu Zi [1999] No. 33) and the Notice of the State Administration of Taxation on the Collection Administration of the
Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil Resources (Guo Shui Fa [1999] No. 55),
the fees for using the aforesaid two cooperative oil fields shall be collected by the taxation authority at the locality of the oil
field and the specific measures for the collection administration shall be carried out in accordance with the Notice of the State
Administration of Taxation on Filing and Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Guo Shui Fa [1995] No. 202 ).

State Administration of Taxation

May 25, 2006



 
State Administration of Taxation
2006-05-25

 






CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING PRINTING AND DISTRIBUTING OF DETAILED RULES ON THE IMPLEMENTATION OF COORDINATION AND MANAGEMENT OF LARGE SCALE COMPLETE SET TELECOMMUNICATION EXPORT ITEMS

Circular of the Ministry of Commerce concerning Printing and Distributing of Detailed Rules on the Implementation of Coordination
and Management of Large Scale Complete Set Telecommunication Export Items

Shang Chan Fa [2006] No. 185

The commerce authorities in charge in all provinces, autonomous regions, municipalities directly under the Central Government, cities
specifically designated in the state plan and Xinjiang Production and Construction Corps the relevant chambers of commerce, the relevant
enterprises, as well as all field commercial authorities:

In accordance with the Measures of the Ministry of Foreign Trade and Economic Cooperation for the Administration and Coordination
of Large Scale Unit Machine and Complete Set Telecommunication Equipment Export Items ([2001] No. 33), the Ministry of Commerce,
through consultation with the relevant authorities, formulated the Detailed Rules on the Implementation of Coordination and Management
of Large Scale Complete Set Telecommunication Export Items. It is hereby printed and distributed to you for observance and implementation.
You shall inform the Ministry of Commerce of any problems in the process of implementation.

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

June 5 2006
Appendix:
Detailed Rules on the Implementation of Coordination and Management of Large Scale Complete Set Telecommunication Export Items
Chapter I General Principles

Article 1

In order to further standardize the market order of Chinese large-scale complete set telecommunication equipment export, strengthen
the coordination and administration upon export items, prevent inappropriate competition activities, promote the sound, sustained
and stable development of the export of large-scale complete set telecommunication equipment and to maintain the overall interest
of China as well as the legitimate interests and rights of the enterprises, the Detailed Rules is hereby formulated in accordance
with the Measures of the Ministry of Foreign Trade and Economic Cooperation for the Administration and Coordination of Large Scale
Single Machine and Complete Set Telecommunication Equipment Export Items ([2001] No. 33).

Article 2

The large-scale complete set telecommunication equipment as mentioned in the Detailed Rules refers to the telecommunication export
item with the contractual sum no less than $10 million, the telecommunication export items valued no less than $ 5 million using
the export credit loan of the People’s Republic of China, the preferential governmental foreign assistance loan or the buyer-side
credit loan for preferential export, as well as the export credit insurance.

Article 3

The Ministry of Commerce and the relevant authorities shall establish the leading group for the coordination of the export items
of large-scale complete set telecommunication equipment to guarantee the smooth implementation of the Detailed Rules. The directorship
of the leading group shall be assumed by the leaders of the Ministry of Commerce and the member units shall include the relevant
authority in charge of the Ministry of Foreign Affairs, the Ministry of Information Industry, the Import and Export Bank of China,
as well as the relevant departments and bureaus of, the regional departments, the mechanic and electrical chambers of commerce, and
the contract of chamber of commerce. The office of the leading group shall be established in the Department of Mechanical, Electronic
and Hi-tech Industry of the Ministry of Commerce. The leading group shall authorize the mechanical and electronic chamber of commerce
and the contract chamber of commerce (hereinafter referred to as “the chamber of commerce”) to be responsible for the detailed coordination
matters.

The responsibilities of the leading group shall include: to be responsible for formulating the whole strategy for standardizing the
market order of large-scale complete-set telecommunication equipment, to strengthen the communication and exchange and coordination
of different sectors, and to be responsible for reporting the relevant issues regularly. The concrete measures for the coordination
mechanism of the leading group shall be otherwise formulated.

Chapter II Business Scope of the Items and the Access Qualification of the Enterprises

Article 4

The large-scale whole complete set telecommunication equipment as mentioned herein includes the following scopes

(1)

Content of the item: supply of equipment, technological design, technology transfer, installation, adjustment and guidance, the supply
of parts of components, after-sale service as well as the corresponding services.

(2)

Means of the public item bidding: international public bidding, biding invitation, tender discussion as well as other means of bidding
invitation.

(3)

Means for the implementation of the item: general contract, subcontract as well as other means.

Article 5

The enterprises participating in the export items of large-scale complete set telecommunication equipments shall have the following
conditions:

(1)

Having the business license of the enterprise legal person verified and issued by the industrial and commercial administrative authority;

(2)

Having sound capital credit and business operation;

(3)

Having the necessary technical staff for carrying out large-scale complete set telecommunication equipment, complete and sound organs,
perfect rules and regulations;

(4)

According with other conditions prescribed in the relevant national laws, rules and regulations.

Chapter III Coordination Principle and Procedure

Article 6

The coordination for the export of large-scale complete set telecommunication equipment shall abide by the following principles:

(1)

Openness, fairness, equity, good faith, and high efficiency;

(2)

To stop inappropriate competition and guarantee the legitimate rights and interests of the enterprises;

(3)

To maintain the normal export order and the whole national interest;

(4)

To protect the interest of the market developers, and ” the developers shall benefit from it”;

(5)

To fully respect the opinion of the embassies and consulates(the economic and commercial counselor’s office )￿￿

(6)

To encourage the alliance of enterprises to cope with the competition of foreign ones and to realize advantageous complementation;

(7)

Helpful to the improvement of the rate of bidding of Chinese enterprises;

(8)

Helpful to the promotion of the economic efficiency of the enterprises.

Article 7

The chamber of commerce shall be responsible for the early period of coordination of the export items of large-scale complete set
telecommunication equipment. Such enterprises as are scheduled to attend the items of large-scale complete set telecommunication
equipment shall submit to the chamber of commerce its application for the bid-invitation within 25 days prior to the tender closing
date and the tender-discussion items within 20 days as of the conclusion of the summary of conference report and the cooperation
agreement respectively. The enterprises shall promptly and initiatively report the progress of the items to the Chinese embassies
and consulates in foreign countries (the economic and commercial counselor’s office) and shall be subject to the guidance hereof.

The chamber of commerce shall otherwise prescribe the disciplines and rules for standardizing the acts of the enterprises.

Article 8

The export enterprises of large-scale complete set telecommunication equipment enterprises shall present the following documents
while applying for the items herein:

(1)

The item application report;

(2)

The Declaration of Export Items of Large-scale Single Machine and Complete Set Equipment;

(3)

The explanation about the negotiation with the clients and the technical requirement of the items;

(4)

Such documents as letter of intent, summary of conference and memorandums concluded with the clients;

(5)

The opinions of the Chinese embassy and the consulate in written form about the access of the enterprise;

(6)

Where the item is involved in the export technology limited by the national government, the Approval Intent Letter of the Technology
of the People’s Republic of China shall be submitted;

(7)

Other relevant documents necessary for the item.

Article 9

The chamber of commerce shall, within 20 working days after the expiration date of the item application, strictly examine the declaration
documents of the enterprises and raise the coordination opinion and inform the relevant enterprises in written in accordance with
the principle of coordination on the basis of soliciting the opinions of all parties such as the embassy, consulate in foreign countries(
the economic and commercial counselor’s office) and experts, and submit the copy one to the leading groups office, the relevant departments
and bureaus, the relevant Chinese embassy and consulate in foreign country￿￿the economic and commercial counselor’s office￿￿for record.

In accordance with the concrete situation, the chamber of commerce may, by means of convening item coordination conference and expert
panel discussion, invite the leading group office and the relevant departments, bureaus, experts, banks and the insurance institution
to attend and coordinate it after having verified the item, fully heard the opinions of all parties. The important coordination items
shall be determined after the chamber of commerce has raised the relevant opinion and reported it to the leading group for study.

Article 10

The chamber of commerce shall submit to the relevant banks and insurance institutions the copy of the coordination opinion about
the items which require the submission of export credit loan, preferential governmental foreign assistance loan or the preferential
buyer-side export credit loan. The relevant banks and insurance institutions shall undertake independent assessment in accordance
with the coordination opinion hereof and the relevant provisions of export credit loan and export insurance administration, and issue
the letter of intents of loan acceptance and insurance for those items meeting the export requirement.

Article 11

The large-scale complete set telecommunication equipment export enterprises shall, after having received the coordination opinion
of the chamber of commerce, abide by and fulfill it and inform the chamber of commerce of the progress of the items. The enterprises
hereof shall, after having concluded contract with foreign businessman, submit to the chamber of commerce the major contents of the
contract as well as the relevant issues in written form.

Article 12

Where the large-scale complete set equipment export enterprise has objection to the coordination opinion hereof, it shall, within
15 days after its receipt of the cooperation opinion, lodge a complaint to the leading group office, which shall, within 10 days
as of its receipt of the application, make a rule hereupon, and submit the important proceedings to be decided by the leading group.
The rule shall, once received, come into effect and be abided by the complainant. The enterprises shall, during the period of complaint,
fulfill the coordination opinion of the chamber of commerce.

Article 13

Where the large-scale complete set telecommunication equipment export enterprise disagrees with the rule made by the leading group
(office), it may lodge administration reconsideration or administrative suit.

Article 14

The leading group shall encourage and actively promote the establishment of middle and high-level consultation mechanism among the
large-scale complete set telecommunication equipment export enterprises and the chamber of commerce shall take the lead in conducting
market coordination, information exchange and jointly concluding various discipline agreements among enterprises.

Article 15

When the large-scale complete set telecommunication export enterprises apply for the for the access of the items concerning the signature
ceremony of high level visit during the period of abroad visit of national leaders and the visit of foreign leaders, they shall meet
the following conditions:

(1)

the items which are necessary for the diplomacy of the People’s Republic of China and win the express support of the embassy and
consulate hereof(the economic and commercial counselor’s office);

(2)

the items which have been applied to and been recommended by the chamber of commerce;

(3)

the items which require the financial institutions of the People’s Republic of China to provide finance and export insurance acceptance
items and have the letter of intent concerning loan and insurance acceptance;

(4)

the items which are mature and meet the relevant agreement concluded during the period of high-level visit;

(5)

the item owner and the authorities in charge of that country agree to sign the relevant agreement.

Whether the items shall be included in the signature ceremony of high-level visit shall be determined by the authority in charge with
the consultation of the relevant departments of the Ministry of Commerce after the suggestion hereof has been raised by the chamber
of commerce, submitted to the leading group and been jointly studied and approved by the leading group and the relevant authorities.

Where the large-scale complete set telecommunication equipment export enterprise apply to donate equipment to a foreign side during
the period of the abroad visit of the national leader hereof and the visit of the foreign leader, the chamber of commerce shall raise
the suggestion by the chamber of commerce in accordance with the actual situation, submitted to and determined by the leading group.

Article 16

The large-scale complete set telecommunication equipment export item using preferential export credit loan of the buyer’s side shall
be administered in accordance with such documents as the Circular of the Ministry of Finance, the Ministry of Foreign Affairs, the
Ministry of Commerce and the People’s Bank of China on Printing and Distributing the Interim Measures for the Administration of Preferential
Export Credit from the Buyer’s Side(Cai Jin[2004] No.46) and the coordination shall be enforced by referring to the Detailed Rules
hereof.

The export items of large-scale complete set telecommunication equipment using preferential governmental foreign assistance loan shall
be administered in accordance with such documents as the Circular of the Ministry of Foreign Trade and Economic Cooperation, the
Ministry of Finance, the People’s Bank of China, China Import and Export Bank concerning the promulgation of the Measures about the
Supply of Preferential Loan Assistance to Foreign Countries( Wai Jing Mao Yuan Fa [2001] No. 122) and the cooperation shall be enforced
by referring to the Detailed Rules hereof.

Chapter IV the Coordination Rules and the Penalty Discipline

Article 17

The relevant personnel involved in the coordination of the items shall strictly abide by the industrial morality and the coordination
discipline and impartially undertake the coordination in accordance with the rules. Where the abuse of power, favoritism, negligence
and the revelation of commercial credentials occur in the process of the coordination of the items, the relevant authority shall
give the corresponding administrative treatment. Where they constitute crime, the judicial authority shall trace the legal liability
in accordance with the relevant law.

Article 18

The enterprises involved in large-scale complete set telecommunication equipment export items shall strictly abide by the relevant
laws, rules and operation it in accordance with the relevant laws, shall not harm the national interest and the legitimate interest
of the enterprises of the same profession. The following acts of the enterprises shall be deemed as unfair competition:

(1)

Harming the interest of the nation and the other domestic enterprises;

(2)

Interfering the items which have won the bid and concluded contract by means of donation and low price;

(3)

Maliciously defaming other domestic enterprises by any means;

(4)

Hunting the staff of other enterprises by unfair means;

(5)

Not applying the items in accordance with the relevant laws and rules or participating the items without accepting the coordination;

(6)

Not implementing the coordination opinion, participating the items without lodging complaint within the prescribed time limit and
fulfilling the rule;

(7)

Revealing the coordination and other relevant situation outside;

(8)

Violating the coordination procedure;

(9)

Having falsification in the application, registration or bid tender(invitation);

(10)

Offering price outside about the domestic financial items without the authorization of the relevant domestic financial institution;

(11)

Not abiding by the laws, rules and customs of the local nation or region;

(12)

Other acts in violating of the relevant laws and rules.

Article 19

Where the large-scale complete set telecommunication export equipment violates the relevant laws, the chamber of commerce shall investigate,
verify and submit the information hereof to the leading group, which shall render warning, grave warning or notice of criticism and
give such punishments as the temporary suspension of the item participation qualification, and the exclusion these items of the promotion
and support in the bilateral governmental mechanism, the preferential governmental loan or the preferential export credit from the
buyer’s side.

Article 20

The leading group shall inform the relevant banks and insurance institutions of the relevant situation about the large-scale complete
set telecommunication equipment export enterprises of which violate the relevant rules and the banks and financial institutions herein
shall not issue the letter of intents of item loan acceptance and item insurance acceptance.

Chapter V Supplementary Provisions

Article 21

The Ministry of Commerce shall be responsible for interpreting the Detailed Rules herein.

Article 22

The Detailed Rules shall be implemented as of 30 days after the promulgation of the Detailed Rules.



 
Ministry of Commerce
2006-06-05

 






ANNOUNCEMENT NO. 43, 2006 OF MINISTRY OF COMMERCE ON STARTING ANTI-DUMPING INVESTIGATION ON IMPORTED SULFAMETHOXAZOLE

Announcement No. 43, 2006 of Ministry of Commerce on Starting Anti-dumping Investigation on Imported Sulfamethoxazole

[2006] No. 43

Ministry of Commerce announced an anti-dumping investigation on imported Sulfamethoxazole originating in India (hereinafter referred
to as “investigated product “) on June 16, 2006.

In respond to an appeal from domestic industry on April 21, 2006, Ministry of Commerce examined related issues and evidence. Since
the examination shows the appeal is in line with Article 11 , 13 and 17 and includes related contents and evidence of Article 14
and 15 of Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce decided to start an anti-dumping investigation
on the investigated product as of June 16, 2006.

1.

The period of dumping investigation is from January 1, 2005 to December 31, 2005. The period of industry injury investigation is
from January 1, 2002 to December 31, 2005.

2.

The investigated product is classified under Tariff No. 29350030 in Customs Tariff of Import and Export of the People’s Republic
of China.

3.

Interested parties can apply to Bureau of Fair Trade for Imports and Exports or Bureau of Industry Injury Investigation of Ministry
of Commerce for responding to the charges within 20 days as of the date the Announcement is issued.

At the same time, the related exporters and producers should provide the quantity and amount of the product exported to mainland China
during January, 2005 to December, 2005. Registration Form on Dumping Investigation can be downloaded from

https://gpj.mofcom.gov.cn.

Besides, the interested parties should provide explanation materials on production capacity, output, storage, construction plans,
and quantity and amount of the product exported to mainland China during the period of investigation on injury to domestic industry.
Registration form on Industry Injury Investigation can be downloaded from https://www.cacs.gov.cn.

4.

If the interested parties are not registered responding to charges within the fixed time limit, Ministry of Commerce shall have the
right to refuse their materials and make adjudication according to the available materials.

5.

Interested parties can submit their written opinions to Ministry of Commerce in 20 days as of the date when the Announcement is issued
if they have objections to the qualifications of the applicants, the investigated products, investigation range and other issues.

Interested parties can look up the unclassified version of the application handed in by the applicants at Open Information Look-up
Office of Ministry of Commerce during the above-mentioned period.

6.

Investigation measures can be conducted by questionnaire, sampling, hearing and examination on the spot.

7.

The investigation begins on June 16, 2006 and last 1 year normally. In case of special situation, it could be extended to December
16, 2007.

8.

Address of Ministry of Commerce:

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports:

Tel: 86-10-65197354, 65198497, 65198740

Fax: 86-10-65198172, 65198164

Bureau of Industry Injury Investigation:

Tel: 86-10-65198184, 65198190, 65198070

Fax: 86-10-65197583

Ministry of Commerce

June 16, 2006



 
Ministry of Commerce
2006-06-16

 






ANNOUNCEMENT NO. 44, 2006 OF MINISTRY OF COMMERCE ON ARBITRATION OF EPICHLOROHYDRIN ￿￿ECH￿￿ANTI-DUMPING INVESTIGATION

Announcement No. 44, 2006 of Ministry of Commerce on Arbitration of Epichlorohydrin ￿￿ECH￿￿Anti-dumping Investigation

[2006]No.44

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce released announcement on Dec 28,
2004, deciding to carry out anti-dumping investigation on ECH originating from Russia, the Republic of Korea, Japan and the United
States.

Ministry of Commerce carried out in investigation on dumping and dumping profit margin as well as injury and injury extent on investigated
commodities. In line with investigation result and Article No. 24 of the Anti-dumping Regulations of the People’s Republic of China,
Ministry of Commerce released preliminary arbitration on Sept 21, 2005, confirming dumping of the investigated commodity as well
as the causality between dumping of the investigated commodity and the injury of domestic industries.

After issuance of the preliminary arbitration, Ministry of Commerce continued to carry out investigation on dumping and dumping profit
margin as well as injury and injury extent, and issued the final arbitration (please refer to appendix) in line with investigation
result and Article No. 25 of the Anti-dumping Regulations of the People’s Republic of China. Related matters are now announced as
follows:

I.

Final Arbitration

In line with investigation, Ministry of Commerce finally verdicts dumping of the investigated commodity, injures the domestic ECH
industries, and the existence of causality between dumping of the investigated commodity and the injury of domestic industries.

II.

Imposing Anti-dumping Duties

In accordance with Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State Council decides to impose
anti-dumping duties on ECH originating from Russia, the Republic of Korea, Japan and the United States as from Jun 28, 2006.

The tariff code of the investigated commodity is 29103000.

Rate of Anti-dumping Duties on Different Companies:

Companies in Russia

1.

The Joint Stock Company Kaustik 17.9%

2.

Limited Liability Company “Usoliekhimprom” 5.4%

3.

All Others 71.5%

Companies in the Republic of Korea

1.

HAN WHA CHEMICAL CORPORATION 4.0%

2.

Samsung Fine Chemicals Co., LTD 3.8%

3.

All Others 71.5%

Companies in Japan

1.

Kashima Chemical Co., Ltd. 4.7%

2.

All Others 71.5%

3.

DAISO CO., LTD. 0%

Companies in the United States

1.

The Dow Chemical Company 4.3%

2.

All Others 71.5%

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Epichlorohydrin (ECH) originating from Russia,
the Republic of Korea, Japan and the United States

Ministry of Commerce

June 28, 2006



 
The Ministry of Commerce
2006-06-28

 






REGULATIONS FOR THE SUPERVISION AND ADMINISTRATION OVER COTTON QUALITY

Regulations for the Supervision and Administration over Cotton Quality

July 4, 2006

(Promulgated by Order No. 314 of the State Council of the People’s Republic of China on August 3, 2001, and amended in light of the
Decision of the State Council on Amending the Regulations on the Supervision and Administration over Cotton Quality promulgated on
July 4, 2006)

Chapter I General Provisions

Article 1

With a view to strengthening the supervision and administration over cotton quality, maintaining the order of cotton market, and
protecting the lawful rights and interests of each party to cotton trading, the present Regulations are formulated.

Article 2

When cotton business operators (including cotton purchasers, processors, sellers and storage undertakers, the same hereafter) engage
in cotton business activities, the undertaking of supervision and administration over cotton quality by cotton quality supervision
institutions shall accord with the present Regulations.

Article 3

When a cotton business operator intends to engage in cotton processing business, it shall obtain its qualification certification
according to the relevant provisions of the state.

The cotton business operator shall establish an internal cotton quality management rules and improve them, strictly carry out position-based
quality norms, quality responsibilities and corresponding assessment measures.

Article 4

The competent department of quality supervision, inspection and quarantine of the State Council shall be responsible for the national
cotton quality supervision work, and its subordinate China Fiber Inspection Institute shall take charge of organizing and implementing
such work.

The quality supervision department of the people’s government of a province, autonomous region, or municipality directly under the
Central Government shall be responsible for the cotton quality supervision work within its own jurisdiction. At a place where a professional
fiber inspection institution is set up, the professional fiber inspection institution shall undertake supervision over cotton quality
within its jurisdictional division; at a place where no professional fiber inspection institution is set up, the quality supervision
department shall undertake supervision over cotton quality within its jurisdictional division (when a professional fiber inspection
institution and a local quality supervision department are coordinately used, they shall be uniformly referred to as cotton quality
supervision institutions).

Article 5

The local people’s governments at each level and the functionaries thereof may not enshield or connive the illegal acts related to
cotton quality within their respective regions, or obstruct or interfere with the cotton quality supervision institution’s lawful
investigation and shall punish the violations of the present Regulations in cotton purchase, processing, sale or storage undertaking.

Article 6

Any entity or individual shall have the right to impeach any illegal act concerning cotton quality.

Chapter II Obligations Concerning Cotton Quality

Article 7

Cotton business operators shall, when intending to purchase cotton, establish and perfect the quality inspection and acceptance rules
for the purchase of cotton, and shall have the physical standards for cotton grades and the indispensable equipment and instruments
for cotton quality inspection.

Cotton business operators shall, when purchasing cotton, determine the category, grade and quantity of the cotton purchased in light
of the national standards and technical norms after excluding the foreign fibers and other noxious materials; if the purchased cotton
goes beyond the national moisture standard, it shall be subject to technical treatment such as airing in the sun or drying with machine
and etc., so as to guarantee the cotton quality.

Cotton business operators shall place purchased cotton by category or by grade.

Article 8

Cotton business operators shall, when processing cotton, satisfy the following requirements:

(1)

It shall, in light of national standards, select and exclude the foreign fibers and other noxious substances in the cotton for processing;

(2)

It shall, in light of national standards, grade and process cotton, pack the processed cotton and attach marks compatible to the cotton
quality;

(3)

It shall, in light of national standards, pack the processed cotton and place it in batches.

Cotton business operators may not process cotton by using leather rollers, cotton ginning machine, packaging machine or other cotton
processing equipment, which are prohibited by the state through public proclamation.

Article 9

Cotton business operators shall, when selling cotton, satisfy the following requirements:

(1)

Each batch of cotton shall be attached with a quality voucher;

(2)

The cotton packages or marks shall meet national standards;

(3)

The category, grade and weight of the cotton shall be consistent with the quality voucher or mark; and

(4)

The cotton having passed the notarization inspection shall be attached with an accredited inspection certificate, or shall, if it
is state-reserved cotton, be affixed with an accredited inspection mark.

Article 10

Cotton business operators shall, when undertaking storage of state-reserved cotton, establish and perfect quality inspection and
acceptance rules on the entry of cotton into or exit from warehouse, and guarantee that the category, grade and quantity of the state-reserved
cotton entering into or exiting from the warehouse are consistent with the accredited inspection certificate and the accredited inspection
mark.

Cotton business operators shall, when undertaking storage of state-reserved cotton, maintain and repair the undertaking facilities
according to the relevant provisions of the state, so that the quality of the state-reserved cotton can be guaranteed to exempt from
any quality variance caused by human elements.

Cotton business operators may not put any cotton without passing accredited quality inspection into the warehouse as state-reserved
cotton or take it out of the warehouse as state-reserved cotton.

Government authorities or the functionaries thereof may not compel any cotton business operator to put any cotton without passing
accredited quality inspection into the warehouse as state-reserved cotton or take it out of the warehouse as state-reserved cotton.

Article 11

Cotton business operators may not, when purchasing, processing, selling or undertaking storage of cotton, forge, alter or pretend
to use any cotton quality voucher or mark, or any accredited inspection certificate or accredited inspection mark.

Article 12

Cotton business operators shall be strictly prohibited from, during their business activities such as purchase, processing, sale
or storage undertaking of cotton, adulterating any cotton, substituting any qualified cotton with inferior one or using any fake
cotton as genuine one.

Chapter III Cotton Quality Supervision

Article 13

The state shall adopt the accredited cotton quality inspection system.

The term “accredited cotton quality inspection” as mentioned in the preceding paragraph shall refer to the activities through which
a professional fiber inspection institution inspects the quality and quantity of cotton in light of national standards and technical
norms, and issues an accredited inspection certificate.

Article 14

Cotton business operators that sell cotton to cotton consuming enterprises may, before either party to the transaction makes cotton
transaction settlement, entrust a professional fiber inspection institution to make an accredited inspection of the cotton in bargain.
After the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which may be used as the basis of the cotton quality or quantity.

Article 15

The entry of state-reserved cotton into or the exit thereof from the warehouse shall be subject to accredited cotton quality inspection;
upon the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which shall be used as the basis for the state treasury to pay the expenses needed in storing the state-reserved cotton.

The state-reserved cotton having passed the accredited inspection shall be affixed by the professional fiber inspection institution
with an accredited inspection mark that is unanimously prescribed by the China Fiber Inspection Institute.

Article 16

The professional fiber inspection institution shall, when undertaking an accredited cotton quality inspection, implement the national
standards as well as its inspection methods, technical norms and time requirements, so as to guarantee the inspection to be objective,
impartial and timely. The accredited cotton quality inspection certificate issued by the professional fiber inspection institution
shall reflect the quality and quantity of the cotton truthfully and objectively.

The content of the accredited cotton quality inspection certificate shall contain the product name, the (entrusting) entity under
inspection, the batch number, the number of packages, the inspection basis, the inspection result, the inspecting entity, the inspectors
and etc.

The format of the accredited cotton quality inspection certificate shall be prescribed by the department for quality supervision,
inspection and quarantine of the State Council.

Article 17

The professional fiber inspection institution may not charge any fee when making an accredited cotton quality inspection, and the
expenses needed in the inspection shall be listed as expenditures in accordance with the related provisions of the state.

Article 18

The department for quality supervision, inspection and quarantine of the State Council shall, throughout China, arrange for the sample
supervisory inspection on the cotton having passed accredited cotton quality inspection, and the quality supervision department of
the people’s government of a province, autonomous region, or municipality directly under the Central Government shall arrange for
the sample supervisory inspection on the cotton having passed accredited cotton quality inspection within its respective jurisdiction.

The content of a sample supervisory inspection shall be: whether the accredited cotton quality inspection certificate and the accredited
inspection mark are consistent with the physical product or not; and whether the accredited cotton quality inspection made by the
professional fiber inspection institution is objective, impartial and timely or not.

The samples needed in a sample supervisory inspection shall be drawn from the reserved samples have passing the accredited inspection
at random, and an inspection conclusion shall be made within 10 days as of the day when the sample is drawn.

Article 19

The cotton quality supervision institution may, with regard to the cotton beyond the accredited cotton quality inspection, undertake
supervisory inspection of cotton purchase, processing, sale or storage undertaking on the spot.

The content of a supervisory inspection shall be: whether the quality, quantity and package of the cotton meet the national standards
or not; and whether the mark and quality voucher of the cotton accord with the physical product or not.

Article 20

The cotton quality supervision institution may, during the process of cotton quality supervisory inspection, exercise the following
powers, when investigating an act suspected to violate the present Regulations on the basis of the evidence or tip-off on any suspected
illegal act:

(1)

making an on-site inspection on the place where any business activity suspected to violate the present Regulations is conducted;

(2)

investigating the related persons of the cotton business entity to obtain information about the business activity suspected to violate
the present Regulations;

(3)

consulting and photocopying the contracts, documents, account books and other materials on the cotton business operation; and

(4)

sealing up or distraining the suspected adulterated cotton, inferior cotton used to substitute qualified one, fake cotton used as
genuine one, or any other cotton with serious quality problems, and the equipment and instruments specially used to produce the aforesaid
cotton.

Article 21

When required by a supervisory inspection, the cotton quality supervision institution may inspect the cotton quality. The samples
needed in the inspection shall be randomly drawn from the purchased, processed, for-sale or reserved cotton in light of the related
national standards. And an inspection conclusion shall be made within 3 days as of the drawing of sample for inspection.

No fee may be charged for the inspection in accordance with the preceding paragraph, and the necessary inspection expenses shall be
listed as expenditures in accordance with the related provisions of the state.

Article 22

Where a cotton business operator or a cotton consuming enterprise has any objection to the result of an accredited cotton quality
inspection or a cotton quality supervisory inspection made according to the present Regulations, it may, within 5 days as of receipt
of the inspection result, apply to the cotton quality supervision institution of the province, autonomous region, or municipality
directly under the Central Government or China Fiber Inspection Institute for re-inspection, which shall, within 7 days as of receiving
the application, make a re-inspection conclusion and notify the applicant. If the cotton business operator or the cotton consuming
enterprise still has any objection to the re-inspection conclusion, it may bring a lawsuit to the people’s court under law.

Article 23

Other fiber inspection institutions recognized by the department for quality supervision, inspection and quarantine of the State
Council may be entrusted to conduct cotton quality inspection. The specific measures shall be formulated by the department for quality
supervision, inspection and quarantine of the State Council in conjunction with other related departments of the State Council.

Chapter IV Penalty Provisions

Article 24

Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article 7 of the present Regulations by failing
to meet the national standards or technical norms to exclude foreign fibers and other noxious substances before determining the category,
grade and quantity of the purchased cotton, or by failing to conduct technical treatment on the purchased cotton which goes beyond
the national moisture standard, or by failing to classify and grade the purchased cotton for placement, it shall be ordered by the
cotton quality supervision institution to make corrections, and imposed upon a fine up to RMB 30,000 Yuan.

Article 25

Where a cotton business operator, when processing cotton, violates Paragraph 1 of Article 8 of the present Regulations by failing
to meet the national standards to select and exclude foreign fibers and other noxious substances, or by failing to meet the national
standards to process the cotton by grade, to pack and mark the cotton, or by failing to meet the national standards to place the
cotton by batches, it shall be ordered by the cotton quality supervision institution to make corrections, and may, in light of the
severity of the circumstance, be imposed upon a fine of RMB100,000 Yuan. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Where a cotton business operator, when processing cotton, violates Paragraph 2 of Article 8 of the present Regulations by using any
cotton processing equipment of express prohibition of the state, the aforesaid prohibited cotton processing equipment shall be confiscated
by the cotton quality supervision institution and be destroyed under supervision thereof, and the operator shall be imposed upon
a fine twice up to ten times of the actual value of the illegal equipment. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Article 26

Where a cotton business operator, when selling cotton, violates Article 9 of the present Regulations due to the fact that the for-sale
cotton has no quality voucher or no package or mark meeting the national standards, the quality voucher or the mark does not accord
with the physical product, the cotton having passed the accredited inspection has no accredited inspection certificate or the state-reserved
cotton is not affixed with an accredited inspection mark, it shall be ordered by the cotton quality supervision institution to make
corrections, and may, in light of the severity of the circumstance, be imposed upon a fine up to RMB 100,000 Yuan.

Article 27

Where a cotton business operator, when undertaking the storage of state-reserved cotton, violates Paragraph 1, 2 or 3 of Article
10 of the present Regulations by failing to establish quality inspection and acceptance rules for entry of cotton into or exit thereof
from the warehouse, or due to the fact that its physical state-reserved cotton entering into or exiting from the warehouse is inconsistent
with the accredited inspection certificate or mark, or that it fails to comply with the provisions of the state to maintain or repair
the storage undertaking facilities and thus results in variance of the quality of the state-reserved cotton, or that it uses any
cotton having not passed the accredited inspection as state-reserved cotton for entry into or exit from the warehouse, it shall be
ordered by the cotton quality supervision institution to make corrections, and may be imposed upon a fine up to RMB 100,000 Yuan;
if any heavy loss is caused, the person-in-charge and other persons directly liable shall be demoted or be given a severer disciplinary
sanction; if any crime is constituted, he shall undertake criminal liabilities under law.

Article 28

Where a cotton business operator conceals, transfers or damages any article sealed up or sequestered by the cotton quality supervision
institution, it shall be fined by the cotton quality supervision institution twice up to five times of the value of the concealed,
transferred or damaged cotton; if any crime is constituted, he shall be subject to criminal liabilities under law.

Article 29

Where a cotton business operator violates Article 11 of the present Regulations by forging, altering or imitating any cotton quality
voucher or mark, any accredited inspection certificate or any accredited inspection mark, it shall be fined by the cotton quality
supervision institution at the amount of RMB 50,000 Yuan up to RMB 100,000 Yuan. If the circumstances are serious, the case shall
be transferred to the administrative department for industry and commerce for revocation of its business license; if any crime is
constituted, he shall be subject to criminal liabilities under law.

Article 30

Where a cotton business operator, when undertaking cotton business activities, violates Article 12 of the present Regulations by
adulterating cotton, substituting any qualified cotton with inferior one or using any fake cotton as genuine one, if any crime is
constituted, he shall be subject to criminal liabilities under law; if no crime is constituted, the adulterated cotton, the inferior
cotton used to substitute the qualified one, or the fake cotton used as genuine one and the illegal proceeds shall be confiscated
by the cotton quality supervision institution, a fine twice up to five times of the value of the illegal cotton shall be imposed
upon, and the case shall be transferred to the administrative department for industry and commerce for revocation of the business
license under law.

Article 31

Where a professional fiber inspection institution violates Article 16 of the present Regulation by refusing to execute the national
standards or its inspection methods, technical norms or time requirements, or by issuing an untrue accredited cotton quality inspection
certificate, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State
Council or the local quality supervision administrative department to make corrections; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post under law.

Article 32

Where a professional fiber inspection institution violates Article 17 of the present Regulations by charging any fee for accredited
inspection, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State Council
or the local quality supervision administrative department to refund the charged fee; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of heavy demerit record or demotion under law.

Article 33

In case a professional fiber inspection institution practices fraud by way of fabricating or issuing an accredited inspection certificate
or by affixing any accredited inspection mark before making an accredited inspection, its responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post by the administrative
department of quality supervision, inspection and quarantine of the State Council or the local quality supervision administrative
department under law. If any crime is constituted, he shall be subject to criminal liabilities under law.

Article 34

Where a governmental office or any of its functionaries violates Paragraph 4 of Article 10 of the present Regulations by compelling
any cotton business operator to put any cotton having failed the accredited quality inspection into or take it out of the warehouse
as state-reserved cotton, the responsible person-in-charge and other persons directly liable shall be imposed upon the administrative
sanction of demotion or removal from post under law.

Article 35

Where a governmental office or any of its functionaries covers up or connives any local illegal act related to cotton quality, or
obstructs or interferes with any cotton quality supervision institution from investigating under law the acts in violation of the
present Regulations, it/he shall be imposed upon the administrative sanction of demotion or removal from post under law. If any crime
is constituted, it/he shall be subject to criminal liabilities under law.

Article 36

The value of cotton as prescribed in Article 28 and Article 30 of the present Regulations shall be computed at the listed price
of the illegally purchased, processed or sold cotton or on the basis of the settlement note; if there is no such listed price or
settlement note, the value shall be computed at the market price of the cotton of the same category.

Article 37

As to the administrative penalty of fine given according to the present Regulations, the decision on the fine shall be separated
from the collection thereof according to the related laws and administrative regulations, and the collected fines shall be fully
turned in to the state treasury.

Chapter V Supplementary Provisions

Article 38

The supervision and administration on the qualities of wool, fine hair, cocoon silk and hemp fibers shall be conducted by referring
to the present Regulations.

Article 39

The present Regulations shall enter into effect as of the date of the promulgation thereof.



 
The State Council
2006-07-04

 






ANNOUNCEMENT NO. 53,2006 OF THE PEOPLE’S BANK OF CHINA

Announcement No. 53,2006 of the People’s Bank of China

[2006] No. 53

The People’s Bank issued the bill of the Central Bank to some first-grade trading businessmen that engage in the open market business
on Thursday of this week (July 13) in light of the requirement for money control. The specific conditions are as follows:

The issuance of the Instrument of the Central Bank


Name

Name

Issuance Volume

Term

Bidding Price

Referential Yield Rate

The Instrument of the Central Bank (50th, 2006)

50 billion Yuan

1 year

97. 73 Yuan

2. 1138%

The Operating Office of the Open Market Business of the People's Bank of China

July 13, 2006

1...798081...83Page 80 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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