Facebook
Home German Laws Page 81

German Laws

OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT HOW TO DETERMINE THE PERMANENT ESTABLISHMENT OF FOREIGN ENTERPRISES PROVIDING LABOR SERVICES WITHIN THE TERRITORY OF CHINA AND ABOUT WHOM THE PROFITS SHOULD BE ATTRIBUTED TO

Official Reply of the State Administration of Taxation about How to Determine the Permanent Establishment of Foreign Enterprises Providing
Labor Services within the Territory of China and about Whom the Profits should be Attributed to

Guo Shui Han [2006] No. 694

1.

In the “permanent establishment” clause of tax treaties, permanent establishments include “the furnishing of services, including consultancy
services, by an enterprise of a Contracting State through employees or other personnel in the other Contracting State, provided that
such activities continue for the same project or a connected project for a period or periods aggregating more than six months within
any twelve-month period.” In practice, where a foreign enterprise has no permanent establishment within the territory of China and
only sends its employees to provide services, including consultancy services, for a connected project within the territory of China,
if these employees’ actual working period or periods aggregates more than six months within any twelve-month period, it is safe to
determine that this foreign enterprise has a permanent establishment within the territory of China.

2.

Where a project lasts for several years and if the working period of any employees a foreign enterprise assign to China to provide
services only in a certain period of over 6 months, but the working period of other employees a foreign enterprise assign to China
to provide services is less than six months, it is still safe to determine that this foreign enterprise has a permanent establishment
within the territory of China. This permanent establishment is based on all services the foreign enterprise provides for the related
project rather than the services it provides in a certain period.

3.

Where a foreign enterprise has a permanent establishment providing services for a certain project through its employees within the
territory of China, the related profits sourced from the services related to the project within the territory of China shall be considered
as the profits of the permanent establishment and shall be taxed.

State Administration of Taxation

July 19, 2006



 
State Administration of Taxation
2006-07-19

 






URGENT NOTICE OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA ON ADJUSTING THE HS CODE OF PART OF TEXTILES EXPORTED TO THE USA SUBJECT TO TEMPORARY ADMINISTRATION OF EXPORT LICENSING

Urgent Notice of the Ministry of Commerce of the People’s Republic of China on Adjusting the HS Code of Part of Textiles Exported
to the USA Subject to Temporary Administration of Export Licensing

Shang Pei Zheng Han[2006] No. 85

The competent departments of commerce of all provinces, autonomous regions, municipalities, cities directly under State planning,
Xinjiang Production and Construction Corps and Harbin, Changchun, Shenyang, Xi’an, Nanjing, Wuhan, Chengdu and Guangzhou:

The General Administration of Customs adjusted HS code of a part of commodities due to the modification of the interim tax rate commodities.
622 categories of textiles exported to the USA which are subject to temporary administration of export licensing are concerned. For
detailed status of the adjustment, please see the appendix enpost_titled Form of HS Code Adjustment of 622 Categories of Textiles Exported
to the USA.

In order to assure the smooth Customs clearance of the textiles under the adjusted HS codes, the Ministry of Commerce adjusted Applying
System on Line for Interim Export Licensing of Textiles (Version 2006), which shall function at 19:00 on July 31, 2006.

The matters related to the issuance are hereby noticed as follows:

1.

For the commodities which are applied to customs on or after August 1 and involved with the 662 textile products to the USA, departments
of commerce and license-issuing authorities shall issue interim export license according to adjusted HS code.

2.

Where an exporter obtains an interim export license of textiles in relation to the 662 categories of textiles exported to the USA
prior to July 31 and is to apply to customs on or after August 1.All departments of commerce and license-issuing authorities shall
be well prepared for the work of renewing the interim export license of textiles.

In case the departments of commerce and license-issuing authorities fall across any problem in the course of execution, please contact
the Section for Synthetic Affairs of our Bureau.

Contact Persons: Li Hongwei, Li Wanhong

Contact Tel.: 010-84095017, 010-84095551-7623

Fax: 010-84095017

Quota and License Administrative Bureau of Ministry of Commerce

July 31, 2006



 
The Ministry of Commerce
2006-07-31

 






ANNOUNCEMENT OF THE REDISTRIBUTION OF IMPORT TARIFF QUOTAS OF AGRICULTURAL PRODUCTS IN 2006

Announcement of the National Development and Reform Commission, the Ministry of Commerce

No. 53

In accordance with the Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products, the Announcement
of the Redistribution of Import Tariff Quotas of Agricultural Products in 2006 is hereby formulated and promulgated.
The National Development and Reform Commission,

the Ministry of Commerce

August 14, 2006

Announcement of the Redistribution of Import Tariff Quotas of Agricultural Products in 2006

In accordance with the Interim Measures for the Administration of Import Tariff Quotas of Agricultural Products(Decree No. 4, 2003
of the Ministry of Commerce and the National Development and Reform Commission, hereinafter referred to as “the Interim Measures”),
the Announcement No. 58,2005 of the National Development and Reform Commission concerning the Amount, the Application Condition and
the Distribution Condition of the Quotas of Cotton Import (hereinafter referred to as “the Principle of Distribution”) and the Announcement
No.64, 2005 of the Ministry of Commerce concerning the Detailed Rules for the Application and Distribution of Sugar Import Quotas
in 2006(hereinafter referred to as the Detailed Rules for Distribution”, the relevant particulars about the redistribution of quotas
of import tariff quotas of agricultural products in 2006 are hereby announced as follows:

1.

Where an ultimate user having the import tariff quotas of wheat, corn, paddy, rice, sugar, and cotton does not conclude the import
contract about all the quotas amount, or presumably has no means to deliver it by the end of this year although they have concluded
the import contract, it shall return its uncompleted or the impossibility-to-complete part of the tariff quotas to the development
and reform commission, the department of commerce/ the department of foreign trade and economic cooperation of the local province/autonomous
region/municipality directly under the Central Government/ city specifically designated in the state plan prior to September 15.
The National Development and Reform Commission and the Ministry of Commerce will redistribute the returned quotas amount. With regard
to the quotas having not been fully used by the ultimate users prior to September 15, the National Development and Reform Commission
and the Ministry of Commerce shall deduct the corresponding part when distributing the import tariff quotas of the agricultural products
in 2007.

2.

The ultimate users having obtained and completely used the import tariff quotas of the commodities in 2006 as listed in Article 1
herein as well as the new users according with the application conditions as listed in the Distribution Principle and the Detailed
Rules for Distribution and yet having not applied for the import tariff quotas in 2006 on the occasion of distribution at the onset
of the year may apply for the redistribution of import tariff quotas of agricultural products to the local province/autonomous region/
municipality directly under the Central Government/cities specifically designated in the state plan.

3.

The applicant shall, from September 1 to September 15, submit the tariff quotas redistribution in written form to the local province/autonomous
region/municipality directly under the Central Government/city specifically designated in the state plan. The application form shall
be filled in accordance with relevant provisions of the appendix (Application Form of the Redistribution of Import Tariff Quotas
of Agricultural Products in 2006).

4.

The development and reform authorities, the departments of commerce in all provinces/autonomous regions, municipalities directly under
the Central Government and cities specifically designated in the state plan, after having initially audited the application of the
applicant, apply the application meeting the application requirement via the computer administration system of import tariff quotas
of agricultural products on September 1 and submit it to the National Development and Reform Commission in written form after having
summarized the applications chronically prior to September 20.

5.

The National Development and Reform Commission and the Ministry of Commerce shall redistribute the quotas returned by the users in
line with the application order on the internet and shall inform the ultimate users of the result of redistributions of the tariff
quotas prior to October 1.

Where the total amount hereof in the application meeting the conditions is less than that of the tariff quotas redistribution, the
application requirement of every applicant may be met; where it is larger than the that of the tariff quotas redistribution, the
tariff quotas shall be distributed in the order of arrival under the Principle of Distribution and the Detailed Rules for Distribution.

6.

The other particulars such as the effective period of the redistribution of tariff quotas shall be enforced under the Interim Measures,
the Principle of Distribution and the Detailed Rules for Distribution.

7.

The redistribution of import tariff quotas such as wheat, corn, paddy, rice and cotton shall be organized and enforced by the National
Development and Reform Commission, the Ministry of Commerce, as well as the development and reform authorities in all provinces (autonomous
regions, municipalities directly under the Central Government, and cities specifically designated in the state plan.

Appendix: Application Form of the Redistribution of Import Tariff Quotas of Agricultural Products in 2006 (omitted)



 
The National Development and Reform Commission, the Ministry of Commerce
2006-08-14

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA AND THE MINISTRY OF FINANCE CONCERNING PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE ADMINISTRATION OF THE PLEDGE OF (ELECTRONIC) SAVINGS BONDS

Circular of the People’s Bank of China and the Ministry of Finance concerning Printing and Distributing the Interim Measures for the
Administration of the Pledge of (Electronic) Savings Bonds

Yin Fa [2006] No. 291

The Shanghai Headquarters of the People’s Bank of China, each branch and business management department of the People’s Bank of China,
central sub-branch of the People’s Bank of China in provincial capital city, central sub-branch of the People’s Bank of China in
Dalian, Qingdao, Ningbo, Xiamen and Shenzhen; the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China,
China Construction Bank, Bank of Communications, China Merchants Bank, Bank of Beijing, and the China Government Securities Depository
Trust & Clearing Co., Ltd.:

We hereby print and distribute the Interim Measures for the Administration of the Pledge of (Electronic) Savings Bonds (see the Appendix)
to you, please abide hereby.

Appendix: Interim Measures for the Administration of the Pledge of (Electronic) Savings Bonds

The People’s Bank of China and

The Ministry of Finance

August 18, 2006
Appendix:

Interim Measures for the Administration of the Pledge of (Electronic) Savings Bonds

Article 1

In order to satisfy the financing demand of investors to savings bonds (electronic) (hereinafter referred to as savings bonds), regulate
the loan business with the pledge of savings bonds, maintain the legitimate rights and interests of both the lender and the borrower,
guard against financial risks, and promote the stable development of treasury bonds market, we hereby formulate the present Measures.

Article 2

The term of “savings bonds” as mentioned in the present Measures refers to the non-negotiable bonds in Renminbi that are released
by the Ministry of Finance within the territory of the People’s Republic of China, are sold to individual investors via pilot commercial
banks (hereinafter referred to as pilot banks) and that register the creditor’s rights in an electronic way.

Article 3

The term of “pilot banks” as mentioned in the present Measures refers to the commercial banks that engage in the pilot sales of savings
bonds upon approval.

Article 4

The present Measures shall be applied in the case that a borrower obtains Renminbi loans from a pilot bank by using his savings bonds
as the pledge.

Article 5

The possession of the loans with the pledge of savings bonds shall be only from the networks of pilot banks that engage in the business
of savings bonds (all the said networks within a same city shall be contained within a same city). When the loans with the pledge
of savings bonds are granted by a pilot bank, the pledge shall be the savings bonds sold within its own system. As applying for the
pledge loans, a borrower shall file an application with the bank where he originally purchased the savings bonds. Upon examination
and approval, the borrower and the lender shall conclude a pledge loan contract, the lender shall freeze the creditor’s rights attached
to the pledged savings bonds and issue a certificate concerning freeze of the creditor’s rights to the borrower at the same time.

Article 6

The savings bonds for pledge loans shall be qualified undue savings bonds. All the savings bonds which are involved in ownership
dispute, have been reported for loss or have been suspended of payment shall not be regarded as the pledge.

Article 7

When the loans with the pledge of savings bonds are applied for by a borrower, he shall have sufficient creditor’s rights attached
to savings bonds, and show the lender his valid identity certificate. when applies for the pledge business on behalf of someone else,
the written entrustment certificate issued by the creditor as well as the valid identity certificates of the creditor and the agent
shall be provided at the same time.

Article 8

The term of the loans with the pledge of savings bonds shall not exceed the expiry date of savings bonds. In case the savings bonds
with different terms are used as the pledge, the term of loans shall be determined in light of the latest expiry date.

Article 9

The minimum amount of loans with the pledge of savings bonds under application shall be 5,000 Yuan, and the lender itself shall determine
each sum of loans subject to the anticipated proceeds from the savings bonds under pledge, loan rate, and loan term, etc., but it
may not be more than 100% of the par value of the savings bonds under pledge.

Article 10

The provisions of the People’s Bank of China concerning the administration of interest rates, shall govern the level of interest
rates and the method to calculate interests of the loans with the pledge of savings bonds.

Article 11

The loans with the pledge of savings bonds shall be returned on time. The provisions of the People’s Bank of China concerning the
administration of interest rates shall govern the punitive interest rates and the method for punitive interests for overdue loans.
Where the execution of undue savings bonds is needed, the lender may cash them through normal procedures for advanced encashment,
deduct a certain proceeds, and collect commissions from the lender according to a certain proportion of the cashed principal. After
the principal and interests of loans as well as the punitive interests are repaid, the remaining money shall be refunded to the borrower.

Article 12

The borrower shall, after paying off the principal and interests of loans subject to the pledge loan contract, require the lender
to remove the freeze of savings bonds upon the strength of the certificate on freeze of creditor’s rights. If the borrower losses
the certificate on freeze of creditor’s rights, he can inform the lender of the loss.

Article 13

The interests of savings bonds derived from the process of pledge shall be pledged together with the principal.

Article 14

A borrower shall, when applies for the loans with the pledge of savings bonds, go through the formalities for the freeze of creditor’s
rights attached to savings bonds as well as the formalities for removing the freeze in a timely manner; and if the improper disposal
of creditor’s rights brings any loss to the lender, the borrower shall assume corresponding liabilities.

Article 15

Where a borrower is dead, his lawful heritor may go through the formalities for transferring and inheriting the related debts subject
to the Inheritance Law of the People’s Republic of China and other related provisions, and continue to perform the pledge loan contract
concluded by the original borrower. If no heritor exists to perform the contract, the lender has the right to dispose the savings
bonds under pledge so as to repay the principal and interests of loans.

Article 16

The People’s Bank of China, the Ministry of Finance, each branch of the People’s Bank of China, and each local bureau of finance
may, together with other related departments, carry out supervision over and inspection of the qualifications, scope of networks
and business procedures, etc. for the pilot banks to engage in the loan business with the pledge of savings bonds, where necessary.

Article 17

The conditions concerning handling the loan business with the pledge of savings bonds shall be regularly reported by a pilot bank
and its branches to the local branch of the People’s Bank of China and the local department of finance.

Article 18

A pilot bank shall, formulate the detailed implementation rules and report them to the People’s Bank of China and the Ministry of
Finance for archival filing according to the present Measures.

Article 19

When handling the loan business with the pledge of savings bonds, any pilot bank shall strictly abide by the present Measures.

Article 20

The power for interpreting the present Measures shall remain with the People’s Bank of China and the Ministry of Finance.

Article 21

The present Measures shall enter into force as of the date of promulgation.



 
The People’s Bank of China, the Ministry of Finance
2006-08-18

 






OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING HANDLING THE TAX ISSUES ON THE EXPENSES OCCURRED BEFORE FOREST SALES REVENUES BY THE FOREIGN FUNDED ENTERPRISES ENGAGED IN FOREST PLANTING

Official Reply of the State Administration of Taxation concerning Handling the Tax Issues on the Expenses occurred before Forest Sales
Revenues by the Foreign Funded Enterprises engaged in Forest Planting

Guo Shui Han [2006] No. 806

The State Tax Bureau of Guangxi Zhuang Autonomous Region:

The “Request of Instruction concerning the Taxation Policies for Guangxi Stora Enso Forestry Limited Company” (Gui Guoshui Fa No [2005]383
) from your bureau has been received. As for tax issues on the expenses occurred before sales revenue from commercial forest felling
by the foreign-invested enterprises engaged in forest planting (hereinafter referred to the enterprises), we reply as follows:

I.

The expenditures of preparation for establishment of an enterprise only engaging in forest planting during the period of preparatory
establishment, and the costs of production and operation, which occurred from the beginning of production and operation (planting
forest) to the time when the enterprise gain the forest sales revenues first from commercial forest felling. in addition to those
which shall be credited to the original value of the relevant assets, the said expenditures shall be accumulated and classified to
amortize by installments within at least a five-year period from the next month of the month that the date belongs to when the forest
sales revenue is made for the first time.

II.

The revenues achieved by an enterprise from odd sales of original forest on purchased or rented land prior to starting commercial
felling and gaining sales revenue may, as for income tax treatment, be used to offset current costs, and shall not be regarded as
sales revenue, apart from paying the taxes including the transfer tax according to the relevant provisions on the tax.

State Administration of Taxation

August 23, 2006



 
State Administration of Taxation
2006-08-23

 






CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION OF THE PEOPLE’S REPUBLIC OF CHINA, ON THE RESOURCES TAX POLICIES ON VANADIUM ORES

Circular of the Ministry of Finance, the State Administration of Taxation of the People’s Republic of China, on the Resources Tax
Policies on Vanadium ores

Cai Shui [2006] No.120

Financial offices (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities and cities specially designated
in the state plan, and financial bureau of Xinjiang Production and Construction Corps:

In accordance with Provisional Regulations on Resources Tax of the People’s Republic of China, relevant resources tax policies on
vanadium ores are announced as follows for purposes of promoting reasonable exploitation and utilization of vanadium ores.

1.

Units and individuals mining vanadium ores (including stone-like coal vanadium) shall pay resources tax in accordance with Provisional
Regulations on Resources Tax of the People’s Republic of China as well as other related regulations.

2.

The standard for the resources tax applicable to vanadium ores (including stone-like coal vanadium) shall be 12 Yuan per ton.

3.

This circular shall enter into force as of Sept.1, 2006.

Please abide hereby.

Ministry of Finance

State Administration of Taxation

August30, 2006



 
Ministry of Finance, State Administration of Taxation
2006-08-30

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE EFFECTIVENESS AND IMPLEMENTATION OF THE AGREEMENT ON THE AVOIDANCE OF DOUBLE TAXATION BETWEEN CHINA AND TRINIDAD AND TOBAGO

Circular of the State Administration of Taxation on the Effectiveness and Implementation of the Agreement on the Avoidance of Double
Taxation between China and Trinidad and Tobago

Guo Shui Fa [2006] No. 139

The 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 Chinese government and the Government of Trinidad and Tobago officially subscribed the Agreement of the Avoidance of Double Taxation
and Prevention of Tax Evasion concerning Income at the capital of Trinidad and Tobago, Port of Spain, on September 18, 2003. The
foreign affairs departments of both governments have compared notes with each other on August 24, 2004 and April 22, 2005 respectively,
confirming that the necessary legal procedures for going into effect have been accomplished. Based on the prescriptions of Article
28 of the Agreement, the Agreement should enter into force as of May 22, 2005, and shall be implemented as of June 1, 2005 and January
1, 2006 respectively in light of the different income items. The text of the above-mentioned Agreement has been printed and distributed
to you by the State Administration of Taxation through Document Guo Shui Fa [2003] No. 1124 on October 23, 2003. Please abide hereby.

The State Administration of Taxation

September 5, 2006



 
The State Administration of Taxation
2006-09-05

 






MEASURES FOR THE ADMINISTRATION ON SALES PROMOTION ACTS OF RETAILERS

Decree of the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Public Security, the State Administration
of Taxation and the State Administration for Industry and Commerce

No. 18

The Measures for the Administration on Sales Promotion Acts of Retailers, which were adopted at the 7th executive meeting of the Ministry
of Commerce on July 13, 2006 and were approved by the National Development and Reform Commission, the Ministry of Public Security,
the State Administration of Taxation and the State Administration for Industry and Commerce, are hereby promulgated and shall enter
into force as of October 15, 2006.
Bo Xilai, Minister of the Ministry of Commerce

Ma Kai, Director of the National Development and Reform Commission

Zhou Yongkang, Minister of the Ministry of Public Security

Xie Xuren, Director of State Administration of Taxation

Wang Zhongfu, Director of State Administration for Industry and Commerce

September 12, 2006

Measures for the Administration on Sales Promotion Acts of Retailers

Article 1

With a view to regulating the sales promotion acts of retailers, ensuring the lawful rights and interests of consumers, maintaining
the order of fair competition and the interests of the general public, and promoting the sound and orderly development of the retailing
industry, the present Measures are formulated under the relative laws and regulations.

Article 2

The present Measures shall apply to the sales promotion acts conducted by retailers within the territory of the People’s Republic
of China.

Article 3

The term “retailer” as mentioned in the present Measures means the enterprises and their branches as well as the individual business
households, which have registered in the administrative departments for industry and commerce and sell commodities to consumers.

The term “sales promotion” as mentioned in the present Measures refers to the marketing activities that retailers conduct in order
to attract consumers and expand sales.

Article 4

A retailer, when undertaking sales promotion activities, shall follow the principles of lawfulness, fairness and good faith and observe
the commercial ethics, and may not undertake any sales promotion activity in violation of social moralities, disturb the market competition
order and the social public order or impair the lawful rights and interests of consumers and other business operators.

Article 5

A retailer, when undertaking sales promotion activities, shall have corresponding safety equipments and management measures and ensure
the smoothness of the safe passages for fire control. As regards large-scale sales promotion activities such as business start, festival
celebration or business anniversary, it shall set down an emergency scheme for safety so as to ensure good shopping order and prevent
the sales promotion activity from causing any traffic jam, disorder, transmission of diseases, personal injuries or property losses.

Article 6

The contents of advertisements or any other propaganda for sales promotion of a retailer shall be authentic, lawful, explicit and
understandable, in which the retailer shall not use any language, word, picture or image which is ambiguous or misleading. The retailer
may not, under the excuse of retaining the final explanation right, impair the lawful rights and interests of consumers.

Article 7

A retailer, when undertaking sales promotion activities, shall show the promotion contents at an eye-catching place in its business
site, which shall include the promotion reasons, form, rules, time limit, commodity scope and other restrictive conditions.

The retailer shall clearly indicate the counters or goods which are not under the sales promotion activities, and may not declare
whole-store promotion. When clearly indicating the exceptional commodities or promotion rules with restrictive conditions or additional
conditions, the relative characters or pictures shall be conspicuous and definite.

The retailer may not, unless the change is caused by any force majeure, change any of the promotion contents within the time limit
as indicated after it has begun to undertake a promotion activity.

Article 8

A retailer, when undertaking a sales promotion activity, shall pay taxes on its promotion commodities (including the awards or complimentary
gifts for sales with awards) according to law.

Article 9

A retailer, when undertaking sales promotion activities, shall establish a sound price management archives, faithfully, correctly
and completely record the prices prior to and during the process of the promotion activity, and shall properly preserve them and
accept supervision and inspection according to law.

Article 10

A retailer, when undertaking sales promotion activities, shall clearly mark the prices on the price tags with and complete pricing
items, true, clear, and eligible price contents, corresponding goods and price tags and conspicuous marks. It shall not sell any
goods by increasing the marked price, nor charge any fee that is not indicated clearly.

Article 11

A retailer, when undertaking sales promotion activities, may not cheat or induce the consumers to buy commodities by giving them
a discount on the basis of a false original price or by marking a misleading price or by taking a misleading price method.

Article 12

A retailer, when undertaking sales promotion activities, may not decline the quality or after-sale service level of the promotion
commodities (including the awards and complimentary gifts for sales attached with awards), or may not use any article which does
not meet the quality requirements as awards or complimentary gifts.

Article 13

A retailer, when undertaking sales activities with awards, shall d isplay the awards or complimentary gifts, and may not mislead
the consumers by the false values of awards or complimentary gifts or by ambiguous words.

Article 14

A retailer, when undertaking sales promotion activities within a time limit, shall ensure adequate supply of the commodities within
the said time limit.

A retaile shall clearly indicate the concrete quantity of the promotion commodities when undertaking sales promotion activities within
a certain quantity. Where the stores of a chain enterprise undertake sales promotion activities within a certain quantity, they shall
clearly indicate the concrete quantities of the promotion commodities in their respective stores. As for a sales promotion activity
within a certain quantity, a notice of termination of the sales promotion shall be given as soon as the promotion commodities are
sold out.

Article 15

A retailer, when undertaking sales promotion activities through preferential cards of accumulative points, shall clearly indicate
the method to obtain the accumulative points, the valid time period for the said accumulative points and the preferential items to
be obtained for the purchase of goods.

After a consumer gets a preferential card of accumulative points, the retailer may not change any of the items as clearly indicated
in the preceding paragraph, except for the changes that will add to the rights and interests of the consumer.

Article 16

No retailer may undertake any sales promotion activity by making up a reason such as rummage sale, store dismantlement and resettlement,
termination of business, suspension of business or shifting to another business.

Article 17

Where a consumer asks the retailer to provide an invoice or purchase voucher for a promotion commodity, the retailer shall do so
immediately and may not require the consumer to pay any extra fee.

Article 18

No retailer may, under the excuse of sales promotion, refuse to return or change any commodity or set any barrier for the consumers’
return or change of commodities.

Article 19

Industrial associations shall be encouraged to establish credit archives on commercial retailing enterprises so as to intensify the
self-discipline and guide the retailers to undertake sales promotion activities on the basis of law compliance, fairness and good
faith.

Article 20

Where the single store of a retailer with a business area of more than 3, 000 square meters, if the retailer undertakes a sales promotion
activity under the name of business start of any new store, festival celebration or store anniversary, it shall submit the clearly
indicated promotion contents to the commerce administrative department of the place where the business site is located for archiving
purpose within 15 days as of the end of the sales promotion activity.

Article 21

The departments of commerce, price, tax, and industry and commerce of all places shall, in accordance with the pertinent laws, regulations
and provisions, supervise and manage the sales promotion acts under their respective functions. In case any sales promotion act is
involved in any crime, it shall be investigated and punished by the public security organ.

Article 22

Any entity or individual may report any act in violation of the present Measures to the aforesaid entities which shall investigate
and punish it after receiving the tip-off.

Article 23

Where any retailer’s act is in violation of the present Measures, if it is subject to any other law or regulation, such law or regulation
shall prevail. If it is not provided for in any law or regulation, the retailer shall be ordered to make corrections. In the case
of any illegal gains, the retailer may be imposed upon a fine of 3 times of the amount of illegal gains or less, but not exceeding
30, 000 Yuan. In the case of no illegal gains, the retailer shall be imposed upon a fine of 10, 000 Yuan or less. In addition, an
announcement may be made.

Article 24

All provinces, autonomous regions, and municipalities directly under the Central Government shall, in light of their respective actual
circumstances, formulate relative provisions to regulate the sales promotion acts.

Article 25

The power to interpret the present Measures shall remain with the Ministry of Commerce, the National Development and Reform Commission,
the Ministry of Public Security and the State Administration for Industry and Commerce.

Article 26

The present Measures shall enter into force as of October 15, 2006.



 
The Ministry of Commerce, the National Development and Reform Commission, the Ministry of Public Security, the State
Administration of Taxation, the State Administration for Industry and Commerce
2006-09-12

 






MEASURES FOR THE ADMINISTRATION OF THE ESTABLISHMENT OF DIRECT SELLING SERVICE NETWORK

Decree No. 20 of the Ministry of Commerce of The People’s Republic of China

No. 20

The Measures for Administering the Establishment of Direct Selling Service Network have been adopted at the 8th ministerial meeting
of the Ministry of Commerce on August 21, 2006. They are hereby promulgated and shall enter into force as of October 20, 2006.
Minister of the Ministry of Commerce Bo Xilai

September 20, 2006

Measures for the Administration of the Establishment of Direct Selling Service Network

Article 1

For the purpose of regulating the direct sale and intensifying the supervision over direct sale, these Measures are constituted under
the Regulation on Direct Selling Administration (hereinafter referred to as the Regulation).

Article 2

The application materials as submitted by an applicant enterprise shall cover a project of service network in the target direct selling
zone. A project of service network shall satisfy the requirements as follows:

(1)

It shall meet the requirements of end customers and direct salesmen as to know about the product property, price and return and exchange
of products;

(2)

It may not be set up in such places as residence, schools, hospitals, armies and government organs; and

(3)

It shall meet the related requirements of the people’s government at or above the county level for the establishment of direct selling
service network.

Article 3

The organs at the municipal or county level are designated as the elemental entities to grant approval for direct selling business
by The Ministry of Commerce. In each districted city, an applicant enterprise shall establish no fewer than 1 service network in
each district of the city. Any direct selling activity in any other district/county of the city shall be declared under these Measures.

The commerce department at or above the county level shall conduct examination on the project of service network as submitted by an
applicant enterprise in accordance with Paragraph 2, Article 10 of the Regulation. In the case of approval, a written Letter of
Authorization (see Appendix I for model format) certifying that the project of service network that meets the requirements of Article
2 of these Measures shall be shown to the commerce department at the provincial level.

Article 4

When the commerce department at the provincial level transfers the application materials of an enterprise to the Ministry of Commerce,
it shall show the Confirmation Letter of the Project of Service Network (see Appendix II for model format) simultaneously. The Confirmation
Letter shall cover the following contents:

(1)

The enterprise’s project of service network has been confirmed by the local commerce department at or above the district/county level;
and

(2)

The enterprise’s project of service network in the target direct selling zone in the province meets the requirements of paragraph
2, Article 10 of the Regulation.

Article 5

An enterprise that has gained a Licence for Direct Selling Business in accordance with law shall complete the establishment of service
network in light of the project of service network as reported to and approved by the Ministry of Commerce within 6 months as of
the day when the approval document is issued. In case any enterprise fails to complete the establishment of the aforesaid service
network, it may not conduct any direct selling business in any zone for which its project of service network has not been carried
out. If the enterprise plans to conduct any direct selling business in the aforesaid zone, it shall make separate declaration in
accordance with the Regulation.

Article 6

The commerce department of the related province, autonomous region or municipality directly under the Central Government shall, jointly
with the commerce department at or above the district/county level where the service network is located, conduct examination on the
service network that has been set up in the province, autonomous region or municipality directly under the Central Government in
accordance with the Regulation as well as the related provisions, and shall report the result of the examination to the Ministry
of Commerce for archival purpose in a one-off manner. The Ministry of Commerce shall, upon archival filing, publicize the zones and
networks where a direct selling enterprise may engage in direct selling business through the management website of direct selling
service. A direct selling enterprise may not carry out any direct selling activity before the related examination and archival filing
is completed.

Article 7

A direct selling enterprise may expand its service networks in those districts where it has been approved to undertake the direct
selling business in accordance with the requirements for business development without going through any examination and approval,
but it shall report its project of expansion to the Ministry of Commerce for archival purpose through the commerce department at
the provincial level. The Ministry of Commerce shall, upon archival filing, publicize the expanded service network in the districts
where the related direct selling enterprise has been approved to undertake the direct selling business through the management website
of direct selling service.

The local commerce department may require a direct selling enterprise to expand its service network in accordance with paragraph 2,
Article 10 of the Regulation, and shall give the related explanations thereto.

In case a direct selling enterprise adjusts its project of service networks, or reduces the service network shall be reported to the
original department of examination for approval and shall be put on archives in accordance with the related provisions.

Article 8

Anyone who disobeys the provisions of these Measures shall be imposed upon a punishment in accordance with the provisions of Article
39 of the Regulation.

Article 9

The related commerce department as well as the functionaries thereof shall perform their responsibilities in accordance with the
law and take charge of the administration of the foundation of service network. Anyone who disobeys the provisions these Measures
shall be imposed upon a punishment in accordance with the provisions of Article 38 of the Regulation.

Article 10

The Ministry of Commerce shall be responsible for interpreting these Measures.

Article 11

These Measures shall enter into force as of October 20, 2006.

Appendix 1
Letter of Authorization about the Service Network of XX (Name of the Applicant Enterprise for Direct Selling Business)

XX (Name of the commerce department of a province/municipality directly under the Central Government/ autonomous region):

Upon deliberation, the project of service network of XX (name of the applicant enterprise for direct selling business) as set up in
this county /city/ district will facilitate and satisfy the requirements of the customers and direct salesmen in the county, city
or district to know about the product capability, price and return and exchange of products of XX(name of the applicant enterprise
for direct selling business). And the service network thereof is not set up in such places as residence, schools, hospitals, armies
and government organs.

Appendix: Project of the Service Network under Application of XX (Name of the Applicant Enterprise for Direct Selling Business)

The commerce department at the county/city/region district level (Seal)

Date Month Year
Appendix 2
Confirmation Letter of the Service Network under Application of XX (Name of the Applicant Enterprise for Direct Selling Business)

The Ministry of Commerce:

1.XX (Name of the applicant enterprise for direct selling business) plans to engage in the direct selling business in our province/municipality
directly under the Central Government/autonomous region, covering “YY, YY￿￿”(Name of the related counties/cities/ districts). And
its project of service network has been reported to the aforesaid county/ city/ district.

2.The project of service network of XX (Name of the applicant enterprise for direct selling business) has been certificated by the
commerce department of the aforesaid county/city/district, for which a Letter of Authorization has been produced.

3.The project of service network of XX (Name of the applicant enterprise for direct selling business) in this county/city/region district
meets the requirements as prescribed in paragraph 2, Article 10 of the Regulation on Direct Selling Administration.

4. The principal of the (Department/Commission/Bureau) of Commerce of this Province (Municipality directly under the Central Government/Autonomous
Region) has examined and approved this Confirmation Letter.

Commerce department at the provincial level (Seal)

Date Month Year



 
The Ministry of Commerce
2006-09-20

 






SUPPLEMENTARY CIRCULAR OF MINISTRY OF FINANCE, GENERAL ADMINISTRATION OF CUSTOMS AND STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES OF ADJUSTING EXPORT TAX REFUND RATE OF SOME COMMODITIES

Supplementary Circular of Ministry of Finance, General Administration of Customs and State Administration of Taxation on Relevant
Issues of Adjusting Export Tax Refund Rate of Some Commodities

Cai Shui [2006] No. 145
September 29, 2006

The competent departments of finance and taxation in all provinces, autonomous regions, municipalities directly under the central
government and cities specifically designated in the state plan, Guangdong Sub-Administration of China Customs, Special Commissioners’
Office in Shanghai and Tianjin, the customs offices directly affiliated to the General Administration of Customs, and the Bureau
of Finance in Xinjiang Production & Construction Corps:

As of the distribution of the Circular of Ministry of Finance, State Development and Reform Commission, Ministry of Commerce, General
Administration of Customs and State Administration of Taxation on Adjusting Export Tax Refund Rate of Some Commodities and Supplementing
the Prohibited Catalogue for Processing Trade (Cai Shui [2006] No. 139), some problems in its implementation and its appendix have
been reported and it is hereby supplemented as follows:




I

I.
Provisions of Tax Refund Rate of Commodities Listed in the Appendix of the
Document Cai Shui [2006] No. 139

1.      
1.
Commodities which apply the original tax refund rates. The commodities as
follows in the “List of Commodities with Reduced Export Tax Refund Rates”
still apply the original tax refund rates:

Sequence
Number		 Chapter Tariff Code Name Original Tax Refund Rate
844 63 63090000 Old clothes 0
967 72 72181000 Stainless
ingot and other primary products		 0
968 72189100 Semi-finished stainless steel products of rectangular
cross section		 0
969 72189900 Other semi-finished stainless steel products 0
996 72241000 Other alloy ingots and primary products 0
997 72249010 Rough wrought bars, individual weight ￿￿0 tons 0
998 72249090 Other alloy steel billets 0
1108 80 80030000 Stannum and stannum alloy poles, bars and filaments 5
1109 80040000 Stannum and stannum alloy plates, sheets and strips,
thickness >0.2mm		 5

2.      
2. Delete two
commodities from the “List of the List of Commodities with Reduced Export
Tax
Refund Rates”, i.e. “unalloyed nickel powder and flaky powder”, No. 1081
and Tariff Item No. 75040010, and “alloy nickel
powder and flaky powder”,
No. 1082 and Tariff Item No.75040020.

3.      
3. The tax
refund rate of “iron or unalloyed steel wire plated or coated with zinc”,

No. 964 and Tariff Item No.72172000 in the “List
of the Commodities with Reduced Export Tax Refund Rates”, shall be 8%.

4.      
4. Adjust the
Tariff Item of certain export commodities in the “List of the Commodities
with
Reduced Export Tax Refund Rates”.

a.      
a. “Other
polyvinyl plates, sheets and strips”, No. 99 and Tariff
Item No.39201090,
is split into “Ethylene-tetrafluoroethylene Film”, Tariff Item No.75040010 and with a tax refund rate of 11%, and
“non-foam

polyethylene plates, sheets, films, foils and riglets”, Tariff Item No.
3920109090, with a tax refund rate of 11%.

b.      
b. “Other
propylene polymer plates, sheets and strips”, No. 101 and Tariff
Item
No.39202090, is modified into “non-foam polypropylene plates, sheets,
films, foils and riglets”, Tariff Item No.3920209090″
and with a tax refund
rate of 11%.

c.      
c. “Polyvinyl chloride plates, sheets, films, foils and
riglets, plasticizer by weight￿￿%”,
No. 103 and Tariff Item No.39204300, is modified into
“polyvinyl
chloride plates, sheets, films, foils and riglets”, Tariff
Item No.3920430090
and with a tax refund rate of 11%.

d.      
d. “Polyvinyl
chloride plates, sheets, films, foils and riglets, plasticizer by weight￿￿6%”,
No. 104 and Tariff
Item No.39204900, is modified into “other polyvinyl chloride plates, sheets,
films, foils and
riglets”, Tariff Item No.3920490090 and with a tax refund
rate of 11%.

e.      
e. “Bamboo
throwaway chopsticks”, No. 192 and Tariff Item No.44190032, is modified
into “other
bamboo throwaway chopsticks”, Tariff Item No.4419003290 and with a tax refund
rate of 11%.

5.      
5. Add the commodities as follows in the “List of
Commodities without Export Tax Refund
Rates”: “pure magnesium oxide”, Tariff Item No.25199091,
“other magnesium oxide”, Tariff Item
No.219909990, and “wollastonite”,
Tariff Item No.25309091.

6.      
6. Adjust the
Tariff Item and the name of certain commodities in the “List of Export

Commodities with Raised tax Refund Rates”. The name of the commodity No. 192
is “gas chromatograph”, and that of No. 169
is “palmitostearin”.
The Tariff
Item of “computer
parts and accessories (including magnetic head and memory bar)”,
which is
originally No.84733090
and the commodity code No. 14, is
split to two, i.e. No. 84733010 and No. 84733090.
The magnetic head and the
memory bars of supercomputers, mainframe computers, medium-sized computers and
minicomputers
are incorporated into Tariff Item No. 84733010 and the reserved
memory bar of microcomputers and other automatic data processing
equipment is
included into Tariff Item No. 84733090.

II.
Clarify the Catalogue of Commodities with Export Tax Refunds Cancelled before
the Document Cai Shui [2006] No.139

The
Document Cai Shui [2006] No.139
has clearly stated: “List the commodities with export tax refunds cancelled
now and before
into the catalogue of prohibited processing trade. Collect import
tariff and import linkage tax from commodities listed in the
catalogue of
prohibited processing trade”. The appendix of the document nevertheless does
not include the catalogue of commodities
whose export refunds had already been
cancelled. It is hereby supplemented with “Catalogue
of Commodities with Export Tax Refund
Cancelled Before September 15, 2006”,
which consists of the commodities whose export tax refund had already been
cancelled
before the present adjustment. See the appendix for details.

Appendix:
“Catalogue of Commodities with Export Tax Refund Cancelled Before September
15, 2006”

￿￿

Appendix:

Catalogue of Commodities with Export Tax Refund Cancelled Before
September 15, 2006

￿￿

No. Tariff
Item		 Name
of Commodity
1 03019210 Eel fry
2 05061000 Bone, horn and column, unprocessed or degreased,
initially processed (unslit), treated with acid or degummed; powder of

the above products
3 05069011
4 05069019
5 05069090
6 2504 Natural graphite
7 2508 Other clay, etc.
8 2510 Natural calcium phosphate,
calcium
alumina phosphate, and
phosphate chalk
9 25191000 Magnesium products under the previous tariff item
numbers
10 25199010
11 25199020
12 25199030
13 2519909910
14 25261020 Talcum products under the previous tariff item numbers
15 25262020
16 25292100 Fluorite products under the previous tariff item numbers
17 25292200
18 25309020 Rare earth
19 25309099 Magnesium products under the previous tariff item
numbers
(bricks of magnesia waste)
20 Chapter 26 Ore, slag and calx, including ore and concentrate of
iron, manganes, copper, nickel, cobalt, aluminum, zinc, stannum, chrome,

tungsten, uranium, titanium, columbium, tantalum, vanadium, molybdenum
and noble metals, and other residues,
scoria and calx
21 27011210 Caking coal
22 27040010 Coke and semi-coke
23 2706 Tar and other mineral tar distilled from coal, lignite
or peat, dehydrated or partly distilled, remade tar included
24 27101110 Motor and aviation gasoline
25 27101120 petroleum
naphtha
26 27101911 Aviation kerosene
27 27101912 Lamp kerosene
28 27101921 Light
diesel oil
29 27101922 Fuel oil No.5-7
30 27101929 Other diesel oil and fuel
oil
31 27101991 Lubricating oil
32 27101992 Lubricating grease
33 27101993 lube
base oil
34 27101999 Other heavy oil; unnamed
products with the above oil as the basic elements
35 27109100 Waste oil
36 27109900
37 28046900.1 Silicon metal products
under
the previous tariff item numbers
38 28047010 Phosphor
39 28047090 Rare Earth Products under the Previous Tariff Item
Numbers
40 28053011
41 28053012
42 28053019
43 28053021
44 28053029
45 28181000 Artificial corundum
46 28182000 Aluminum oxide
47 28183000
48 2826900010 Potassium
fluotantalate
49 28461010 Rare earth oxide products
under the previous tariff item numbers
50 28461020 Rare earth salt products
under
the previous tariff item numbers
51 28461030
52 28461090
53 28469011 Rare earth oxide products
under the previous tariff item numbers
54 28469012
55 28469013
56 28469014
57 28469019
58 28469028 Rare earth salt products
under
the previous tariff item numbers
59 28469029
60 28469030
61 28469048
62 28469049
63 28469090
64 28491000 Calcium carbide
65 28492000 Silicon carbide products
under the previous tariff item numbers
66 29022000 Benzene
67 3004909020 Pacilitaxel products
68 3102100010 Carbamide products
69 3102100090
70 31028000
71 3105300010 Diammonium
phosphate, monoammonium phosphate
72 3105300090
73 31054000
74 3824909010 Silicon carbide products
under the previous tariff item numbers
75 4101 Raw fur under the previous
tariff item numbers
76 4102
77 4103
78 4104 Leather
under
the previous tariff item numbers
79 4105
80 4106
81 4301 Raw furskin
82 4401 Fuel wood, wood in chips or particles, sawdust, wood
waste and scraps
83 4403 Log
84 4404 Hoopwood, split wooden poles, sheets and
chipwood, etc.
85 4405 Wood-Wool, Wood Powder
86 4407 Wood sawn or chipped lengthwise, or sliced or peeled,
more than 6mm thick
87 4408 Facing sheets, etc., more than 6mm thick
88 4409 Lumber continuously shaped along any of its edges, ends
and faces

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024