The State Administration of Quality Supervision, Inspection and Quarantine
Decree of the State Administration of Quality Supervision, Inspection and Quarantine
No.50
Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods, which have been examined and
adopted at the executive meeting of the State Administration of Quality Supervision, Inspection and Quarantine on June 19th 2003,
are hereby promulgated and shall come into force since promulgation.
Director Li Changjiang
July 18, 2003
Provisions on the Management of Green Passageway System for Inspection and Quarantine of Export Goods
Chapter I General Provisions
Article 1
With a view to speeding up the customs clearance process, facilitating the customs release of export goods and promoting export, the
Provisions are formulated in accordance with the Law of the People’s Republic of China on Import and Export Commodity Inspection
and the implementation rules thereof.
Article 2
The term “green passageway system for inspection and quarantine” (hereinafter referred to as the green passageway system) in the Provisions
refers to the release management pattern of granting inspection and quarantine certificate at the production area with exemption
for inspections by the port inspection and quarantine authority for the qualified export goods of the production and operation enterprises
that have good credit rating, sound and stable product quality guarantee system and relatively large export scale, upon the examination
and approval by the State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ).
The principle of voluntary application by enterprises shall be adopted in the application of the green passageway system.
Article 3
The SAQSIQ shall take charge of supervision and administration of the nation-wide green passageway system for export goods and implement
verification and approval of the enterprises to be covered by the green passageway system. Local administrations of exit-entry inspection
and quarantine directly under the SAQSIQ (hereinafter referred to as the administrations of inspection and quarantine directly under
SAQSIQ) shall be in charge of the examination, supervision and administration of the enterprises to be covered by the green passageway
system within their respective jurisdictions. Local institutions in charge of exit-entry inspection and quarantine established by
the SAQSIQ (hereinafter referred to as the inspection and quarantine institutions) shall be responsible for acceptance of applications,
preliminary examination and regular administration of the enterprises to be covered by the green passageway system within their respective
jurisdictions.
Article 4
The SAQSIQ shall determine and adjust the scope of export goods to which the green passageway system are applied, in accordance with
the real situation of inspection and quarantine for export goods as well as the implementation outcome of the green passageway system.
The green passageway system shall not apply to the bulk goods or goods that are quality-unstable or liable to deterioration or require
replacement of the inspection and quarantine certificate at the port.
Chapter II Enterprise Qualification
Article 5
A enterprise applying for coverage of the green passageway system shall meet the following conditions:
(1)
having good reputation and sound credit rating, with the annual export volume exceeding USD5,000,000;
(2)
having implemented the ISO9000 quality management system and obtained the certificate of eligibility in assessment and examination
of the production enterprise quality system issued by the relevant organ;
(3)
having long-term stable quality for the export goods and have not been involved in quality-based compensation claim or dispute with
the import country within the recent two years;
(4)
having no improper inspection applications within a year and having no record of administrative sanctions by the inspection and quarantine
institutions within two years;
(5)
belonging to the first-grade or second-grade enterprises if classified administration of production enterprises is applied pursuant
to the relevant provisions of SAQSIQ
(6)
having obtained registration for marks of production area where it is required by any law, regulation, or bilateral agreement for
the use of marks for the production area;
(7)
other conditions stipulated by the SAQSIQ.
Article 6
The applicant enterprise should make the following commitment:
(1)
complying with the laws and regulations on exit-entry inspection and quarantine and the Provisions on the Application for Exit-Entry
Inspection and Quarantine;
(2)
adopting e-application;
(3)
ensuring conformity between the export goods and their certificates, the eligibility of batch numbers and complete markskeeping
the sealing intact if sealing is adopted;
(4)
conducting no such illegal activities as replacing or stealthily substituting goods when the export goods are carried to the port
after having obtained the inspection and quarantine certificate from the inspection and quarantine institutions;
(5)
voluntarily accepting the supervision and administration by the inspection and quarantine institutions.
Article 7
Enterprises applying for the adoption of the green passageway system shall ask for and fill in the Application Form for Adoption of
the Green Passageway System (see attachment) and at the same time, submit the Certificate of ISO9000 Quality Management System Accreditation
(photocopy) as well as other relevant documents.
Chapter III Examination and Approval
Article 8
The inspection and quarantine institutions in charge of application acceptance shall complete the preliminary examination in accordance
with the provisions as follows:
(1)
examining the application documents;
(2)
verifying and investigating the facts about the enterprise’s quality guarantee system and the quality of its export goods and whether
it has improperly applied for inspection or other acts in violation of the provisions on inspection and quarantineand
(3)
proposing the opinion on preliminary examination and submitting it to the superior administration of inspection and quarantine directly
under SAQSIQ.
Article 9
The administration of inspection and quarantine directly under SAQSIQ shall review the preliminary examination opinion and report
the list of qualified enterprises and the relevant documents to the SAQSIQ.
Article 10
The SAQSIQ shall give approval to the enterprises meeting the relevant requirements of the green passageway system. The approved list
of enterprises to be covered by the green passageway system shall be made public by the SAQSIQ.
Chapter IV Inspection and Quarantine at Production Area
Article 11
For those in conformity with the following provisions, the inspection and quarantine institutions at the production area shall conduct
the acceptance of inspection applications by referring to the green passageway system.
(1)
For self-operating export enterprises covered by the green passageway system, the applicant entity for inspection, the consigner and
the production enterprise shall be the same
(2)
For operating enterprises covered by the green passageway system, the applicant entity for inspection and the consigner shall be the
same, and the export goods operated shall be produced by the production enterprises covered by the green passageway system.
Article 12
For the export enterprises approved to adopt the green passageway system, the inspection and quarantine institutions where the enterprises
are located shall confirm their qualification for coverage of the green passageway system in the sub-system for inspection application
of the CIQ2000 System.
Article 13
The workers of the inspection and quarantine institutions shall conduct examination in strict compliance with the requirements of
the green passageway system when accepting the e-inspection applications of the enterprises covered by the green passageway system.
For those failing to meet the relevant requirements, reasons should be given in the return receipt for inspection application
Article 14
If any enterprise failing to meet the requirements for the green passageway system coverage are found during the inspection process,
the personnel of the inspection and quarantine institutions shall write the words “failing to meet the requirements for green passageway
system coverage” in the column of inspection and quarantine opinion of the Flow Diagram for Inspection and Quarantine or the relevant
inspection and quarantine records.
Article 15
The inspection and quarantine institutions at the production area shall strengthen the examination of the inspection application documents
and the inspection & quarantine documents for export goods covered by the green passageway system, and e-transmit the qualified documents
to the port inspection and quarantine institutions to form the customs clearance data. During the transmission of documents, the
specified code of the port of customs declaration should be input and the Certificate of Document Transmission issued.
Chapter V Port Examination and Release
Article 16
The port inspection and quarantine institutions should establish service windows for enterprises adopting the green passageway system.
Article 17
For export goods of the enterprises covered by the green passageway system, the port inspection and quarantine institutions shall
enter the subsystem for inspection application of the CIQ2000 System and launch the green passageway function.
Article 18
For enterprises adopting the green passageway system, the port inspection and quarantine institutions shall conduct stringent examination
over the information concerning the green passageway system in the e-document transmission date. If no problems are found in the
examination, the Notice of Customs Clearance For Outward Goods will be issued directly without inspections.
If the enterprises covered by the green passageway system alter the declaration contents at the port, the port inspection and quarantine
institutions shall not refer to the green passageway system for release.
Chapter VI Supervision and Administration
Article 19
The inspection and quarantine institutions at the production area shall establish the management files for, and strengthen the management
over enterprises covered by the green passageway system.
Article 20
Upon discovering non-conformance to the self-discipline commitment of the enterprise covered by the green passageway system or other
acts in violation of the provisions, the port inspection and quarantine institution shall make a report in good time to the administration
of inspection and quarantine directly under SAQSIQ where the port is located.
After verification, the administration of inspection and quarantine directly under SAQSIQ where the port is located shall notify the
administration of inspection and quarantine directly under SAQSIQ at the production area. The latter shall suspend the adoption the
green passageway system for the enterprise and submit to the SAQSIQ the opinion on canceling the coverage of the green passageway
system for the enterprise. After confirmation, the SAQSIQ shall disqualify the enterprise from adopting the green passageway system.
Article 21
The Inspection and quarantine institutions at the port and the production area shall make statistical reports on the implementation
of the green passageway system on a regular basis and establish the mutual notification system.
Chapter VII Supplementary Provisions
Article 22
The right to interpret the Provisions shall remain with the State Administration of Quality supervision, Inspection and Quarantine.
Article 23
The Provisions shall come into force as of the date of its promulgation.
The State Administration of Quality Supervision, Inspection and Quarantine
2003-07-18
Ministry of Finance, State Administration of Taxation
Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Export Rebate Rates
CaiShui [2003] No. 222
October 13, 2003
The departments (bureaus) of finance and the bureaus of state taxes of all provinces, autonomous regions, municipalities directly
under the Central Government and cities directly under State planning, the bureau of finance of Sinkiang Production and Construction
Army Corps:
Upon approval of the State Council, structural adjustments shall be made on the current export rebate rates for value-added tax, and
the notice on the relevant issues is given as follows:
1.
The current export rebate rates for the following goods shall remain unchanged:
(1)
The agricultural products whose current export rebate rates range between 5% and 13%;
(2)
The industrial products processed from agricultural products whose current export rebate rate is 13% (except for those prescribed
in Articles 3 and 4 of the present Circular);
(3)
The goods whose VAT rate as prescribed in the current taxation policies is 17%, and tax refund rate is 13% (except for those prescribed
in Articles 3 and 4 of the present Circular);
(4)
Ships, automobiles and their key components and parts thereof, aircrafts and spacecrafts, digital control machines, processing centers,
printed circuits, railway engines, etc. whose current export rebate rate is 17% (refer to Annex 1 for the HS codes and commodity
names);
2.
The export rebate rate for wheat flour, maize (corn) flour, severed ducks, severed rabbits and other goods as listed in Annex 2 shall
be raised from 5% to 13%.
3.
The policies on export tax refund of crude oil, wood, paper pulp, fine goat hair, eel fries, rare earth metal minerals, phosphorus
ores, natural graphite and other goods listed in Annex 3 shall be cancelled. As to the goods subject to the consumption tax, the
policies on export rebate or exemption of consumption tax shall be cancelled accordingly.
4.
The export rebate rates for the following goods shall be lowered:
(1)
The export rebate rate for gasoline (HS code: 27101110) and unwrought zinc (HS code: 7901) shall be lowered to 11%;
(2)
The export rebate rate for unwrought aluminum, yellow phosphorus and other phosphorus, unwrought nickel and iron alloy, molybdenum
ores and concentrates, and other goods listed in Annex 4 shall be lowered to 8%;
(3)
The export rebate rate for coke and semi-coke, coking coal, fused magnesia, dead-burned (sintered) magnesia, feldspar, talc, steatite
and other goods listed in Annex 5 shall be lowered to 5%;
(4)
Except for the goods prescribed in Articles 1 through Article 3 and Paragraphs (1) through (3) of the present Article, the export
rebate rate of any goods, whose current export rebate rate is 17% or 15, shall be lowered to 13%. The export rebate rate of all the
goods whose current tax rate and tax refund rate is 13% shall be lowered to 11%.
5.
With regard to the export contracts signed by export enterprises with foreign parties before October 15th, 2003 on whole sets of equipment
(whose export value is 2 million USD or more) or large mechanical and electronic products (whose unit price is 1 million USD or more)
falling within the scope of Paragraph (4) of Article 4 of the present Circular whose prices are unchangeable, where the export date
stipulated in the contract is later than July 1, 2004, such contracts must be registered and put into record before November 15th
, 2003 with the competent tax refund organs upon the strength of their original export contracts and counterparts. The provincial
bureau of state taxes shall, after examination and verification, submit the qualified export contracts and pertinent documents to
the State Administration of Taxation by November 30th, 2003. After joint examination and approval of the State Administration of
Taxation and the Ministry of Finance, the local bureau of state taxes shall handle the tax refund at the pre-adjusted tax rebate
rate. With respect to any whole set of equipment or large mechanical and electronic product whose registration and record fail to
be made before November 15th, 2003, the export rebate shall be handled at the adjusted tax refund rate.
6.
The administrations of finance and taxation in all regions shall earnestly study and grasp the present Circular, and take effective
measures to seriously implement the relevant policies in the present Circular, handle tax refund in jure, and seriously defend the
benefits of the State and the enterprises. They shall, in the meanwhile, closely cooperate with the competent departments of commerce,
customs, foreign exchange, and the enterprises to further do well in export.
7.
As of July 1st, 2004, any enterprise that exports goods by any means shall be subject to the export rebate rates prescribed in the
present Circular. The date of specific implementation shall be based on the departure date as indicated by the customs on the customs
declaration list for the exported goods.
htm/e03246.htm
Annex 1
Annex 1:
Catalogue of Products Whose Refund Tax Rate Remains 17%
HS Codes
Commodity Description
Remarks
8901-8902, 8904, 8905-8906, 8907
Ships
Among the HS Codes,those whose current tax refund rate is 17% shall remain unchanged,while for those whose tax refund rate is 13%,the rates adjusted in the present Notice shall prevail
Circular of the State Administration of Taxation on Carrying through the Decision of the State Council on Reform of the Existing Export
Tax Refund Mechanism
GuoShuiFa [2003] No. 137
November 13th, 2003
The administrations of state taxation of all provinces, autonomous regions, municipalities directly under the Central Government,
and cities directly under State planning, as well as all the entities under the State Administration of Taxation:
With a view to seriously carrying through the Decision of the State Council on Reform of the Existing Export Tax Refund Mechanism
(GuoFa [2003] No. 24, hereinafter referred to as the “Decision”), actualizing the reform of export tax refund mechanism, and further
advancing the work of export tax refund, as well as promoting the sustainable and healthy development of foreign trade and economy,
we hereby make the following notice:
I.
Earnestly improving the understanding on the great significance of reforming the export tax refund mechanism
Since1985, the export tax refund policy of China has played an important role in supporting foreign trade and promoting the sustainable,
stable and healthy development of national economy. But there are still some contradictions and problems to be solved urgently in
the active export tax refund mechanism, to which the Central Committee of the Communist Party of China and the State Council have
attached high importance, and they have made the great decision on reforming the existing export tax refund mechanism after careful
investigation and widely soliciting the opinions of all parties concerned. The present reform on the export tax refund mechanism
concerns not only the adjustment of interest relations between the Central Government and the local governments, but also concerns
the reform of the foreign trade mechanism, the overall situation of foreign trade & export and the development of national economy
as well. As the major departments for carrying through the plan for reform of the export tax refund mechanism, the administrations
of state taxation at all levels shall earnestly study and profoundly understand the spirit of the Decision, be fully aware of the
great significance of the reform on export tax refund mechanism, and consolidate the thoughts and action into the spirit of the “Decision”
from the height of deeply putting into effect the spirits of the Sixteenth Congress of the Communist Party of China and completely
putting the important thought of “Three Represents” into practice, emphasizing the political awareness, paying attention to the overall
situation, and fully understanding the policies, as well as grasping the main points, so as to ensure that the reform of the export
tax refund mechanism goes on smoothly.
II.
Concentrating energy, firmly putting into effect and completely carrying through the spirits of the “Decision”
The period between the end of 2003 and the beginning of 2004 is the key phase for the reform of the export tax refund mechanism. The
administrations of state taxation at all levels shall, in light of the uniform deployment of the State Administration of Taxation,
and according to the particular circumstances of their own regions, make investigation and set down specific suggestions for putting
the reform into effect. The problems and effects that may be brought about by the reform shall be taken into full consideration,
and the actualization of the reform shall be followed up closely so as to have the new problems occurring in the reform found out,
studied and solved in time; the exchange of information between the upper level and the lower level shall be strengthened, and the
new conflicts appearing in the reform shall be dissolved at any time through continuously improving relevant policies and measures;
various measures shall be taken for making publicity and interpretation to the export enterprises as soon as possible, and to combine
the strict law enforcement with the optimization of tax refund services, so as to actually put the various reform measures into effect.
At the present time, the export tax refund work is confronted with new situations, the tasks thereof are heavy, and the management
is more difficult. The State Administration of Taxation, jointly with other relevant departments, is now urgently investigating and
formulating specific implementation measures for the reform, which shall, together with the promulgation of corresponding supporting
measures, be carried through earnestly by the administrations of state taxation at all levels. The principle of being responsible
not only for the State but also for the enterprises, and not only for the Central Government but also for the local governments shall
be followed in the administration of export tax refund, so as to have the work for the administration of export tax refund well done
in the process of alternation from the old mechanism to the new one.
III.
Further improving the efficiency of export tax refund work and speeding up the progress of export tax refund
1.
The administrations of state taxation at all levels shall, in light of the spirit of the recent meeting of the whole country on the
work of import and export taxation, earnestly implement the declaration, auditing, and examination and approval of the export tax
refund in the last two months of the year 2003, so as to further improve the efficiency of the work of export tax refund. The primary
responsible persons of the administrations of state taxation at all levels shall attach sufficient importance to the work, the leaders
of the administrations responsible for export tax refund shall assume leadership in person, and formulate specific work schemes,
so as to ensure that the work is actually put into effect.
2.
The administrations of state taxation at all levels shall supervise and urge the export enterprises to collect tax refund documents
as soon as possible, handle the determination of the special VAT invoices in time on the monthly basis, and declare for the tax refund
in time. The State Administration of Taxation hereby reaffirms that any declaration of the export enterprises may not be refused
by the local taxation authorities for lack of tax refund quotas. In the meantime, the local administrations shall strengthen cooperation
with the competent departments in charge of foreign trade and economy, requiring them to solve in time the problems encountered in
the collection of tax refund documents by the export enterprises, so as to help the export enterprises speed up the collection of
documents.
3.
The local taxation authorities shall make timely analysis on the declaration of tax refund by export enterprises, and in case the
export enterprises are unable to collect all the tax refund such documents as the documents of customs declaration for export, documents
for collecting, verifying and writing off export proceeds in foreign exchange, which caused the lagging behind of the declaration
of tax refund, the local tax authorities shall report to the local governments in time and explain the reason, so as to gain the
understanding and support of the governments. And the relevant matters concerned shall also be reported to the State Administration
of Taxation in time.
IV.
Strengthening administration on export tax refund, taking strict precautions against export tax refund fraud
Firstly, we shall keep alert on preventing and combating tax fraud at the time. The administrations of state taxation at all levels
shall put into effect the system of work post responsibility and the system of fault prosecution in law enforcement, and strengthen
supervision over law enforcement on export tax refund. Secondly, cooperation with such local departments as the finance, business
affairs, customs, and foreign exchange administration, etc. shall be strengthened so as to positively push the construction of Port
Electronic Law Enforcement System, bring into full play the advantages of interlink of the data of electronic port among such departments
as the customs, taxation, foreign exchange administrations, etc., and further improve the level of administration on electronic examination
and verification of export tax refund and the accuracy of law enforcement. Thirdly, we shall push forward the work of export tax
fund for the examination and verification on electronic information by using the special VAT invoices, change our minds, and establish
a new system for the administration on export tax refund as soon as possible, which shall be based on the information administration,
with the examination and verification on the special VAT invoices as the core, so as to bring into full play the role of the golden
taxation project for the prevention of tax fraud.
State Administration of Radio, Film and Television
Order of the State Administration of Radio, Film and Television
No.22
The Measures for the Administration of the Landing of Overseas Satellite Television Channels, which were approved by the executive
meeting of this Administration on November 14, 2003, are hereby issued and shall go into effect on January 10, 2004.
Xu Guangchun, the Director of the State Administration of Radio, Film and Television
December 4, 2003
Measures for the Administration of the Landing of Overseas Satellite Television Channels
Article 1
The present Measures are formulated with a view of strengthening the administration of the landing of overseas satellite television
channels.
Article 2
The present Measures shall be applicable to the administration of the landing of overseas satellite television channels within the
People’s Republic of China through satellite transmission.
Article 3
The State Administration of Radio, Film and Television (hereinafter referred to as SARFT) shall be in charge of the centralized administration
of the landing of overseas television channels, and implement the system of examination and approval to the landing of foreign satellite
television channels.
Article 4
Overseas satellite television channels may, upon approval of SARFT, land within the prescribed range, such as foreign-related hotels
at the three-star level or above, and the foreign-related flats especially provided to foreigners as office or residence, and other
specific ranges.
Article 5
an overseas satellite television channel to be landed in China shall satisfy the requirements as follows:
1)
The contents played shall not infringe the provisions of the laws, regulations and rules of China;
2)
The applicant is a legal television media in its home country (region);
3)
The applicant shall have the comprehensive strength to conduct mutually beneficial cooperation with the radio and television stations
of China, and make an commitment and actively assist in the landing abroad of China’s radio and television programs;
4)
The channel applying for landing and the institutions directly related thereto are friendly to China, and have established long and
friendly exchange and cooperation relationship with China in the field of radio and television;
5)
The applicant shall agree that the programs of its channel should be transmitted by the institution designated by SARFT (hereinafter
referred to as designated institution) in a unified way, and make an commitment not to land those programs within China through any
other means;
6)
The applicant shall agree to entrust the designated institution to act as its agent to handle all the matters related to the landing
within China.
Article 6
SARFT will make the examination and approval of the applications for landing of overseas satellite television channels once a year,
between July and September.
Article 7
In principle, only one channel for each foreign satellite television institution may be permitted to land within the specific range.
No news-oriented overseas satellite television channel shall be approved to land within China as a general principle. And no satellite
television channel that is launched or jointly operated abroad by any domestic radio and television institution or any other relevant
departments, organizations, enterprises or individuals shall be approved to land within China. For any special circumstances, the
application shall be submitted to SARFT for special approval.
Article 8
To apply for the landing of a foreign satellite television channel, the applicant must first submit the application to the designated
institution, fill in the Memorandum of Satellite Television Channels according to the requirements, and submit the certificates prescribed
in Articles 5 and 7 herein and the reception devices such as decoders, etc. If the application documents are incomplete, the applicant
shall supplement the lacking part within 14 days from the day of receiving the relevant notice, and shall be deemed as waiving the
application automatically if failing to make supplementation within the said time limit. The designated institution shall, after
receiving all of the application documents, submit the application to SARFT for the landing within China of the overseas satellite
television channel for which it acts as an agent.
Article 9
In the case that SARFT approve the designated institution to negotiate with the overseas satellite television channel on the agency
of the landing of its channel, if that overseas satellite television channel applies for landing for the first time, it shall negotiate
on the relevant cooperation matters with the designated institution within 60 days; if it obtained the landing qualification in the
last year, it shall make the negotiation within 45 days. If it fails to make the negotiation within the said deadline, it shall be
deemed as waiving the application automatically.
SARFT shall grant approval for the landing of the foreign satellite television channel, if it satisfies the provisions in Articles
5 and 7 hereof.
Article 10
An overseas satellite television channel approved to land must comply with the relevant provisions of China on the administration
of overseas satellite television.
Article 11
An overseas satellite television channel approved to land shall adjust the coverage of the original satellite signals in accordance
with the requirements of the designated institution; perform the agreement signed with the designated institution; and may not carry
out within China any promotion activities for the television channel, the brand thereof, and the relevant reception devices without
permission.
Article 12
It is not permitted for an overseas satellite television channel approved to land to play any program containing any of the following
contents:
1)
Those imperiling the unification of the state and the integrity of the sovereignty and territory of China;
2)
Those imperiling the state security of China, impairing the honor and interest of China, and divulging the state secrets of China;
3)
Those stirring up the splitting of nationalities, hatred and discrimination among the nationalities, undermining the solidarity of
the nationalities, and infringing upon the customs and habits of the nationalities of China;
4)
Those endangering the social stability of China, advocating obscenity, violence, superstition, evil religions, and instigating commitment
of crimes;
5)
Those defaming or insulting others and infringing upon the legal rights and interests of others;
6)
Those endangering the public morality of China and defaming the excellent cultural traditions of China; and
7)
Other contents that infringe the laws, regulations, and rules of China.
Article 13
Any of the following alterations to a foreign satellite television channel approved to land must be notified to and negotiate with
the designated institution beforehand, and the designated institution shall report to SARTF:
1)
Alterations of the shareholding structure, management power, investors, and principal managers of the channel and the institutions
directly related thereto;
2)
Alterations of the important matters specified in the Memorandum of Satellite Television Channels, such as the name of the channel,
the type of the channel, the constitution of the program, the broadcasting languages, and the subpost_titles, etc.;
3)
Alterations of relevant technical parameters, such as whether the broadcasting signals are coded or not, the transmitting satellites
and the coverage thereof, etc.
4)
Alterations of any of the contents involved in Articles 5 and 7 hereof.
If SARFT deems that a channel approved to land no longer satisfies the requirements provided for herein due to any of the alterations
mentioned above, it may deal with the channel correspondingly or even disqualify that channel from landing.
Article 14
The administrative departments of radio and television at various levels shall administer the reception of relevant overseas satellite
television channels in accordance with the Provisions on the Administration of Earth Reception Facilities for Satellite Television
and Radio Programs (Order 129 of the State Council) and the relevant provisions.
Article 15
The designated institution shall assist the administrative department of radio and television to supervise the relevant acts and the
contents played by the foreign satellite television channel for which it acts as an agent by taking necessary prevention and treatment
measures, cooperate with SARFT in the relevant handling, and report in good time any problems that have been identified.
In the case that an overseas satellite television channel approved to land plays any contents that infringe Article 12 hereof, the
designated institution shall immediately stop the transmission of the rule-breaking contents.
Article 16
In the case that an overseas satellite television channel approved to land infringes any provisions hereof, if the offence is minor,
SARFT shall give it a warning and demand it to state the situation and make correction; if the offence is serious, SARFT shall suspend
the transmission of the specific contents, and suspend or revoke the landing qualification of the relevant channel.
Article 17
In the case that an overseas satellite television channel approved to land has caused any negative effect, it shall, apart from accepting
the corresponding treatments, eliminate such negative effect within the same dissemination range in accordance with the requirements
of SARFT.
Article 18
The present Measures shall be referred to with respect to the administration of the overseas satellite television channels approved
by SARFT to land within the specified areas within China.
Article 19
The present Measures shall go into effect on January 10, 2004. The Interim Measures for the Administration of the Examination and
Approval of the Landing of Foreign Satellite Television Channels (Order No.8 of SARFT) shall be abolished at the same time.
State Administration of Radio, Film and Television
2003-12-04
Law of the People’s Republic of China on Commercial Banks
(Adopted at the 13th Meeting of the Standing Committee of the Eighth National People’s Congress on May 10, 1995,
promulgated by Order No. 47 of the President of the People’s Republic of China on May 10, 1995, and amended in accordance with the
Decision of the Standing Committee of the National People’s Congress on Amending the Law of the People’s Republic of China on Commercial
Banks adopted at the Sixth Meeting of the Standing Committee of the Tenth National People’s Congress on December 27, 2003)
Contents
Chapter I General Provisions
Chapter II Establishment and Organizational Structure of Commercial Banks
Chapter III Protection of depositors
Chapter IV Basic Rules for Loans and Other Business Operations
Chapter V Financial Affairs and Accounting
Chapter VI Supervision and Control
Chapter VII Assumption of Control and Termination
Chapter VIII Legal Responsibility
Chapter IX Supplementary Provisions
Chapter I
General Provisions
Article 1 This Law is enacted in order to protect the lawful rights and interests of commercial banks, depositors and other clients,
to standardize the behavior of commercial banks, to raise the quality of credit assets, to strengthen supervision and control, to
ensure the stable and sound operation of commercial banks, to maintain financial order and to promote the development of the socialist
market economy.
Article 2 For the purposes of this Law, the term “commercial banks” means enterprise legal persons that are established in conformity
with this Law and the Company Law of the People’s Republic of China and that take in deposits from the general public, grant loans,
handle settlements, etc.
Article 3 Commercial banks may engage in some or all of the following business operations:
(1) taking in deposits from the general public;
(2) granting short-term, medium-term and long-term loans;
(3) handling domestic and foreign settlements;
(4) handling the acceptance and discounting of negotiable instruments;
(5) issuing financial bonds;
(6) acting as an agent for the issue, honoring and underwriting of government bonds;
(7) buying and selling government bonds and financial bonds;
(8) engaging in interbank lending;
(9) buying and selling foreign exchange and acting as an agent for the purchase and sale of foreign exchange;
(10) engaging in the business of bank cards;
(11) providing letter of credit services and guaranty;
(12) acting as an agent for the receipt and payment of money and acting as an insurance agent;
(13) providing safe deposit box services; and
(14) other business operations as approved by the banking regulatory authority under the State Council.
The scope of business shall be specified in the articles of association of the commercial bank, and submitted to the banking regulatory
authority under the State Council for approval.
Upon approval of the People’s Bank of China, commercial banks may engage in the business of the settlement and sale of foreign exchange.
Article 4 The business operations of commercial banks shall be governed by the principles of safety, liquidity and efficiency.
Commercial banks shall make their own decisions regarding their business operations, take responsibility for their own risks, assume
sole responsibility for their profits and losses and exercise self-restriction.
Commercial banks shall, pursuant to law, conduct business operations without interference from any unit or individual.
Commercial banks shall independently assume civil liability with their entire legal person property.
Article 5 Commercial banks shall adhere to the principles of equality, voluntariness, fairness and good faith in business dealings
with their clients.
Article 6 Commercial banks shall safeguard the lawful rights and interests of depositors against infringement by any unit or individual.
Article 7 In credit transactions, commercial banks shall strictly examine the credit-worthiness of a borrower and implement the system
of guaranty in order to ensure that the loan is recovered on schedule.
Commercial banks shall be protected by law when they recover the principal of loans that have become due and the interest thereon
from the borrowers in accordance with legal provisions.
Article 8 In business transactions, commercial banks shall abide by the relevant provisions of laws and administrative rules and
regulations and may not harm the interests of the State or of the public.
Article 9 In business transactions, commercial banks shall abide by the principle of fair competition and may not engage in illegitimate
competition.
Article 10 Commercial banks shall, in accordance with law, accept supervision and control of the banking regulatory authority under
the State Council, but where laws provide that their relevant business operations shall be subject to supervision and control of
other regulatory departments or bodies, such provisions shall prevail.
Chapter II
Establishment and Organizational Structure of Commercial Banks
Article 11 The establishment of commercial banks shall be subject to examination and approval by the banking regulatory authority
under the State Council.
No unit or individual may engage in commercial banking business such as taking in deposits from the general public, and no unit may
use the word “bank” in its name, without approval of the banking regulatory authority under the State Council.
Article 12 A commercial bank shall meet the following requirements for establishment:
(1) having articles of association that conform to this Law and the Company Law of the People’s Republic of China;
(2) having the minimum amount of registered capital as specified in this Law;
(3) having directors and other senior administrators with the expertise and experience in work commensurate with the positions they
are holding;
(4) having a sound organizational structure and management system; and
(5) having the required place of business, security and precautionary measures and other facilities relevant to it business operations.
The establishment of a commercial bank shall, in addition, meet other requirements of prudence.
Article 13 The minimum amount of registered capital required for the establishment of a national commercial bank shall be RMB one
billion yuan. The minimum amount of registered capital required for the establishment of an urban commercial bank shall be 100 million
yuan, and the minimum amount of registered capital required for the establishment of a rural commercial bank shall be 50 million
yuan. Registered capital shall be paid-up capital.
The banking regulatory authority under the State Council may readjust the minimum amount of registered capital on the basis of the
requirements of prudent supervision and control, however, the readjusted amount may not be lower than the amount specified in the
preceding paragraph.
Article 14 To establish a commercial bank, the applicant shall provide the following documents and information to the banking regulatory
authority under the State Council:
(1) a written application, in which the name, location, registered capital, scope of business, etc. of the proposed commercial bank
are clearly stated ;
(2) a feasibility study; and
(3) other documents and information to be provided as specified by the banking regulatory authority under the State Council.
Article 15 If an application for establishing a commercial bank is found, after examination, to be in conformity with the provisions
of Article 14 of this Law, the applicant shall complete an official application form and provide the following documents and information:
(1) a draft of the articles of association;
(2) the qualification certificates of the director or other senior administrator who is to hold office;
(3) an investment verification certificate issued by a statutory investment verification organization;
(4) a list of the names, capital contributions and shares of shareholders;
(5) credit-worthiness certificates and relevant information concerning the shareholders that hold five percent or more of the registered
capital each;
(6) business policies and plans;
(7) information concerning the place of business, security and precautionary measures and other facilities relevant to business operations;
and
(8) other documents and information as specified by the banking regulatory authority under the State Council.
Article 16 A commercial bank the establishment of which has been approved shall be issued a permit for operation by the banking regulatory
authority under the State Council and, on the strength of such permit, register with the administrative department of industry and
commerce and obtain a business license from it.
Article 17 The organizational form and structure of commercial banks shall be governed by the Company Law of the People’s Republic
of China.
Commercial banks, established prior to the implementation of this Law, that do not entirely conform to the provisions of the Company
Law of the People’s Republic of China in organizational form and structure may continue to be governed by previous regulations.
The date on which the preceding paragraph shall apply to such commercial banks shall be specified by the State Council.
Article 18 A board of supervisors shall be established in a wholly State-owned commercial bank. Measures for forming the board of
supervisors shall be formulated by the State Council.
The board of supervisors shall exercise supervision over the quality of credit assets of the wholly State-owned commercial bank,
its assets-liabilities ratios and maintenance of and increase in the value of State-owned assets, and over the senior administrators
of the commercial bank to see whether they violate any laws, administrative rules and regulations or the articles of association
or commit any acts which harm the interests of the bank.
Article 19 Commercial banks may establish branches within and outside the People’s Republic of China, in light of their needs in
business operations. The establishment of such a branch shall be subject to examination and approval by the banking regulatory authority
under the State Council. The establishment of branches within the People’s Republic of China shall not be restricted by the administrative
division of regions.
When a commercial bank establishes a branch within the People’s Republic of China, it shall allocate operating funds in keeping with
the scale of its business, in accordance with regulations. The sum total of operating funds allocated to all the branches may not
exceed 60 percent of the total amount of the capital of the head office.
Article 20 To establish a branch of a commercial bank, the applicant shall submit the following documents and information to the
banking regulatory authority under the State Council:
(1) a written application, in which the name, amount of operating funds and scope of business of the proposed branch, the location
of the head office and the branch, etc. are clearly stated;
(2) the applicant’s financial and accounting reports of the preceding two years;
(3) the qualification certificates of the senior administrators who are to hold office;
(4) business policies and plans;
(5) information concerning the place of business, security and precautionary measures and other facilities relevant to business operations;
and
(6) other documents and information as specified by the banking regulatory authority under the State Council.
Article 21 A commercial bank’s branch the establishment of which has been approved shall be issued a permit for operation by the
banking regulatory authority under the State Council and, on the strength of such permit, register with the administrative department
of industry and commerce and obtain a business license from it.
Article 22 With respect to their branches, commercial banks shall apply across the board a financial system of centralized accounting
and centralized movement of funds, and of management at different levels.
Branches of commercial banks shall not have the status of a legal person and shall lawfully conduct their business operations within
the scope authorized by their head offices, and their civil liability shall be assumed by their head offices.
Article 23 The banking regulatory authority under the State Council shall announce its approval of the establishment of commercial
banks and their branches.
If a commercial bank or branch thereof fails, without good reason, to commence business more than six months after the date of obtaining
its business license or, after commencing business, suspends business without authorization for six months or more in succession,
the banking regulatory authority under the State Council shall revoke its permit for operation and make it known to the public.
Article 24 A commercial bank shall obtain the approval of the banking regulatory authority under the State Council for making any
of the following changes:
(1) change of name;
(2) change in the registered capital;
(3) change of location of the head office or a branch;
(4) adjustment of the scope of business;
(5) change of shareholders that hold five percent or more of the total amount of capital or shares each;
(6) revision of the articles of association; or
(7) changes in other matters as are governed by the regulations of the banking regulatory authority under the State Council.
When a director or a senior administrator is to be replaced, the qualifications of the substitute for the position shall be submitted
to the banking regulatory authority under the State Council for examination.
Article 25 Division and merger of commercial banks shall be governed by the provisions of the Company Law of the People’s Republic
of China.
Division and merger of commercial banks shall be subject to examination and approval by the banking regulatory authority under the
State Council.
Article 26 Commercial banks shall use their permits for operation in accordance with the provisions of laws and administrative
rules and regulations. Forging, alteration, assigning, leasing out or lending of such permits is prohibited.
Article 27 None of the following persons may serve as a director or a senior administrator of a commercial bank:
(1) persons who have been sentenced to criminal punishment for the crime of embezzlement, bribery, seizure or misappropriation of
property or disruption of the public and economic order, or persons who have been deprived of their political rights
for committing a crime;
(2) directors of companies or enterprises, or factory directors or managers who have been subjected to bankruptcy liquidation
due to mismanagement, and who bear personal liability for the bankruptcy;
(3) legal representatives of companies or enterprises that had their business licenses revoked for breaking law, who bear personal
liability therefor; and
(4) persons with comparatively large amounts of overdue personal debts .
Article 28 Purchase by any unit or individual of five percent or more of the total amount of the shares of a commercial bank shall
be subject to prior approval by the People’s Bank of China.
Chapter III
Protection of Depositors
Article 29 In handling savings deposits for individuals, commercial banks shall adhere to the principles of voluntary deposit, unimpeded
withdrawal, interest payment on deposits and confidentiality for the depositors.
Commercial banks shall have the right to refuse to answer the inquiries into and to refuse to freeze, deduct or transfer an individual’s
savings deposits– as made or requested by any unit or individual, except where otherwise provided for by law.
Article 30 Commercial banks shall have the right to refuse to answer the inquiries into a unit’s deposits by any other unit or individual,
except where otherwise provided for by laws and administrative rules and regulations, and shall have the right to refuse to freeze,
deduct or transfer a unit’s deposits as requested by any other unit or individual, except where otherwise provided
for by law.
Article 31 Commercial banks shall determine the interest rates on deposits in accordance with the upper and lower limits interest
rates on deposits specified by the People’s Bank of China and make them known to the public.
Article 32 Commercial banks shall place a deposit reserve with the People’s Bank of China and maintain sufficient provision for payment,
in accordance with the regulations of the People’s Bank of China.
Article 33 Commercial banks shall guaranty, and may not delay or refuse, payment of the principal of deposits and the interest thereon.
Chapter IV
Basic Rules for Loans and Other Business Operations
Article 34 Commercial banks shall conduct their business of lending in accordance with the needs of the national economic and social
development and under the guidance of the industrial policies of the State.
Article 35 Before granting a loan, commercial banks shall strictly examine the borrower’s purpose for the loan, ability to repay
the loan, method of repayment, etc.
When granting a loan, commercial banks shall implement the system of separating the examination of a loan from the actual provision
of the loan and the system of examination and approval at different levels.
Article 36 To obtain a loan from a commercial bank, a borrower shall provide a guaranty. The commercial bank shall strictly examine
the surety’s ability to repay the loan, the ownership and value of the mortgage or the collateral and the feasibility of realizing
the right of mortgage or right of pledge.
If, after examination and appraisal by a commercial bank, a borrower’s credit is found to be good, and the borrower is deemed truly
able to repay the loan, the borrower need not provide a guaranty .
Article 37 For granting a loan, the commercial bank shall conclude a written contract with the borrower. The contract shall stipulate
the type, purpose, amount and interest rate of the loan, the time limit for repayment, the method of repayment, liability for breach
of contract and other matters deemed necessary by the parties.
Article 38 Commercial banks shall determine loan interest rate in accordance with the upper and lower limits for loan interest rates
prescribed by the People’s Bank of China.
Article 39 When granting a loan, commercial banks shall abide by the following provisions on the control of assets-liabilities ratios:
(1) the capital adequacy ratio may not be lower than 8 percent;
(2) the ratio of the outstanding of loans to the outstanding of deposits may not exceed 75 percent;
(3) the ratio of the balance of floating assets to the balance of floating liabilities may not be lower than 25 percent;
(4) the ratio of the outstanding of loans granted to the same borrower to the balance of the capital of the commercial bank may not
exceed 10 percent; and
(5) other provisions of the banking regulatory authority under the State Council concerning the control of assets-liabilities ratios.
If, after the implementation of this Law, the assets-liabilities ratios of a commercial bank established prior to the implementation
of this Law are found not in conformity with the provisions of the preceding paragraph, the bank shall make it conform to the provisions
of the preceding paragraph within a certain time limit. The specific measures therefor shall be formulated by the State Council.
Article 40 Commercial banks may not grant fiduciary loans to their connections. The conditions for granting secured loans to their
connections may not be more preferential than those for granting the same type of loans to other borrowers.
For the purposes of the preceding paragraph, the term “connections” means:
(1) directors, supervisors, administrators and loan officers of the commercial bank and close relatives of such persons;
(2) companies, enterprises and other economic organizations in which the persons mentioned in the preceding paragraph have invested
or in which they hold senior administrative positions.
Article 41 No unit or individual may forcibly demand a commercial bank to grant a loan or to provide a guaranty. Commercial banks
shall have the right to refuse to grant a loan or to provide a guaranty forcibly demanded by any unit or individual.
Article 42 Borrowers shall repay the loan principal and the interest thereon on schedule.
If a borrower fails to repay a secured loan upon maturity, the commercial bank shall lawfully have the right to require the surety
to repay the loan principal and the interest thereon or the right to preferential compensation in respect of the collateral. Immovable
property or stock rights obtained by a commercial bank through the exercise of the right of mortgage or the right of pledge shall
be disposed of by it within two years from the date it obtains the same.
If a borrower fails to repay a fiduciary loan upon maturity, he shall bear liability in accordance with the provisions of the contract.
Article 43 No commercial banks may, within the territory of the People’s Republic of China, engage in trust investment or securities
business, or invest in immovable property which is not for private use, in non-banking financial institutions or in enterprises,
except where otherwise provided for in the regulations of the State.
Article 44 When handling matters of settlement such as acceptance or remittance of negotiable instruments or entrusted receipt of
payment, etc., commercial banks shall encash the instruments and enter receipts and expenditures in their accounts within the
specified time limits, and may not deliberately delay or withhold payment of bills and negotiable instruments or reject negotiable
instruments in violation of regulations. Regulations relating to the time limits for encashing of instruments and entering
of receipts and expenditures in the accounts shall be announced.
Article 45 To issue financial bonds or to raise loans from outside the People’s Republic of China, commercial banks shall first
submit applications for approval in accordance with the provisions of laws and administrative rules and regulations.
Article 46 Inter-bank lending shall be carried out in adherence to the regulations of the People’s Bank of China. It is forbidden
to use such loans for granting fixed assets loans or making investment.
Funds lent under such loans shall be limited to idle funds that remain after a sufficient reserve against deposit has been retained,
sufficient provision for payment has been made and matured loans from the People’s Bank of China have been repaid. Funds borrowed
under such loans shall be used to make up deficiencies in the settlement of negotiable instruments and in the funds available for
covering remittance differences with correspondent banks and to meet the temporary need for working capital.
Article 47 Commercial banks may not raise or lower interest rates in violation of regulations or use other improper means to take
in deposits or grant loans.
Article 48 Enterprises and institutions may select for themselves the place of business of a commercial bank where to open a basic
account for the day-to-day settlement of account transfers and for cash receipts and payments. They may not open more than one basic
account.
No unit or individual may open an account in the name of an individual to deposit the funds of a unit therein.
Article 49 The business hours of commercial banks shall be such as to be convenient to clients and shall be announced. Commercial
banks shall carry out business during announced business hours; they may not suspend business or shorten their business hours without
authorization.
Article 50 In carrying out business operations and providing services, commercial banks shall charge commissions in accordance with
relevant regulations. The items and rates for such commissions shall be specified by the banking regulatory authority under the State
Council and the People’s Bank of China based on their division of responsibilities, in conjunction with the department of pricing
under the State Council respectively.
Article 51 Commercial banks shall preserve their financial and accounting statements, business contracts and other materials in accordance
with relevant regulations of the State.
Article 52 Employees of commercial banks shall abide by laws and administrative rules and regulations and all other regulations for
the control of business operations; they may not:
(1) use their positions to demand, receive or accept bribes, or receive or accept rebates or commissions of any description in violation
of State regulations;
(2) use their positions to embezzle, misappropriate or seize money belonging to the bank or any client;
(3) practise favoritism towards relatives or friends in granting loans or providing guaranty in violation of regulations;
(4) hold a concurrent position in another economic organization; or
(5) commit other acts in violation of laws, administrative rules and regulations or other regulations for the control of business
operations.
Article 53 No employees of commercial banks may disclose State or business secrets that they come to know during their employment.
Chapter V
Financial Affairs and Accounting
Article 54 Commercial banks shall establish and perfect their own financial and accounting systems in accordance with laws, the uniform
accounting system of the State and the relevant regulations of the banking regulatory authority under the State Council.
Article 55 Commercial banks shall, in accordance with relevant State regulations, truthfully record and give a complete account of
their business activities and financial position, draw up annual financial and accounting reports and, without delay, submit them
to the banking regulatory authority under the State Council, the People’s Bank of China and the department of finance under the State
Council. Commercial banks may not establish any account books in addition to statutory account books.
Article 56 Within three months after the end of every fiscal year, commercial banks shall announce their business results and audit
reports for that year in accordance with the regulations of the banking regulatory authority under the State Council.
Article 57 Commercial banks shall, in accordance with relevant State regulations make allocations to a doubtful account reserve,
in order to set off doubtful accounts.
Article 58 The fiscal year of commercial banks shall commence on January 1 and end on December 31 of the Gregorian calendar.
Chapter VI
Supervision and Control
Article 59 Commercial banks shall, in accordance with relevant regulations, formulate their own operating rules, and establish and
perfect their systems for risk management and internal control.
Article 60 Commercial banks shall establish and perfect their own systems for examination and inspection of deposits, loans, settlements,
doubtful accounts, etc.
Commercial banks shall conduct routine examination, inspection and supervision with respect to their branches.
Article 61 Commercial banks shall, in accordance with relevant regulations, submit to the banking regulatory authority under the
State Council and the People’s Bank of China their balance sheets, profit accounts and other financial, accounting and statistical
statements and information.
Article 62 The banking regulatory authority under the State Council shall have the right at any time to carry out inspection of and
exercise supervision over the deposits, loans, settlements, doubtful accounts, etc. of commercial banks, in accordance with the provisions
of Chapters III, IV and V of this Law. When carrying out inspection and supervision, the inspectors and supervisors shall produce
their lawful identification papers. Commercial banks shall provide financial and accounting information, business contracts and other
information concerning operation and management in compliance with the requirements of the banking regulatory authority under the
State Council.
The People’s Bank of China shall have the power to inspect and supervise the commercial banks in accordance with the provisions of
Articles 32 and 34 of the Law of the People’s Republic of China on People’s Bank of China.
Article 63 Commercial banks shall, according to law, accept supervision by audit institutions through auditing.
Chapter VII
Assumption of Control and Termination
Article 64 When a commercial bank has suffered or will possibly suffer, credit crisis, thereby seriously affecting the interests
of the depositors, the banking regulatory authority under the State Council may assume control over the bank.
The purposes of assumption of control are, through taking such measures as are necessary in respect of the commercial bank over which
control is assumed, to protect the interests of the depositors and to enable the commercial bank to resume normal business. The debtor-creditor
relationship with regard to a commercial bank over which control is assumed shall not change as a result of the assumption of control.
Article 65 The assumption of control shall be decided upon, and its implementation shall be a
