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INTERIM MEASURES GOVERNING THE ESTABLISHMENT OF CHINESE-FOREIGN EQUITY JOINT FOREIGN TRADE CORPORATIONS

The Ministry of Foreign Trade and Economic Cooperation

The Decree of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China

No. 1

In order to open wider to the outside world and to promote the development of foreign trade of our country, the Interim Measures Governing
the Establishment of Chinese-foreign Equity Joint Foreign Trade Corporations adopted at the 2nd minister￿￿s executive meeting, and
is hereby promulgated and shall be come into force after 30 days as of its promulgation. Beginning from its implementation, the Interim
Measures Governing the Establishment of Chinese-foreign Equity Joint Foreign Trade Corporations on a trail basis, which was ratified
on September 2, 1996 by the State Council, and promulgated on September 30, 1996 by the Ministry of Foreign Trade and Economic Cooperation,
will be abolished at the same time.

Minister of the Ministry of Foreign Trade and Economic Cooperation, Shi Guangsheng

January 31, 2003

Interim Measures Governing the Establishment of Chinese-foreign Equity Joint Foreign Trade Corporations

Article 1

For the purpose of opening wider to the outside world and promoting the developments of foreign trade of our country, these measures
are formulated in accordance with the Foreign Trade Law of the People’s Republic of China and the Law of the People’s Republic of
China on Chinese-foreign Equity Joint Ventures, and other related laws and regulations.

Article 2

The measures are applicable to the Chinese-foreign equity joint foreign trade corporations (hereinafter referred to as “equity joint
foreign trade corporation”) specializing in the import and export trade business, jointly established by foreign corporations and
enterprises (hereinafter referred to as “Foreign investor”) and Chinese enterprises and companies (hereinafter referred to as “Chinese
investor”) within the Chinese territory.

Article 3

An equity joint foreign trade corporation is a company with limited liabilities. The foreign investor shall provide at least 25 per
cent of the total registered capital.

Article 4

The following conditions shall be met when establishing a equity joint foreign trade corporation:

1.

The foreign investor’s average annual foreign trade value with China shall reach US$30 million or more in the three years before application;
If the equity joint foreign trade corporation is to be registered in the Midwest of China, the foreign investor’s average annual
foreign trade value with China shall reach US$20 million or more in the three years before application.

2.

The Chinese investor shall have the right to do foreign trade business and its average import & export value shall be more than US$30
million in the three years before application; If the equity joint foreign trade corporation is to be registered in the Midwest of
China, its average import & export value shall be more than US$20 million in the three years before application.

3.

A Chinese-foreign equity joint foreign trade corporation shall meet the following conditions:

a.

Its registered capital shall be no less than 50 million Yuan; If registered in the Midwest, the registered capital shall be no less
than 30 million Yuan;

b.

It has its own name and organizations;

c.

It has operation area suitable for foreign trade business, specialized professionals and other necessary conditions.

Article 5

When applying for the establishment of an equity joint foreign trade corporation, the Chinese investor shall submit the following
documents to the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MFTEC) through the local foreign
trade supervisory department:

1.

Project proposal, feasibility study report signed by all parties involved, contracts, and articles of incorporation;

2.

The proof documents for company registration (copy version), company credit, and legal representatives from all parties involved;

3.

The catalogue of the import & export commodities of the proposed equity joint foreign trade corporation;

4.

The recent three years’ annual account report forms audited by an accountant office from all parties involved;

5.

Other documents requested by the MFTEC The MFTEC shall review the documents it received from various places and it shall give an official
reply to and issue Certificates of Approval for Foreign-invested Enterprises to the qualified corporations within 90 days as of the
acceptance of the whole set of documents.

Article 6

After obtaining state approval for establishing an equity joint foreign trade corporation, the applicant shall file an application
for registration at the State Administration of Industry and Commerce or at local bureaus with its authorization within one month
from the date of the approval, and it shall, in accordance with the law, file an application for tax registration at tax authorities.

Article 7

Both of the foreign investor and the Chinese investor can provide funds for the registered capital in currency, physical objects,
intangible assets (including industrial properties, special technologies and a right to use a site). All the parties to the equity
joint foreign trade corporation shall pay up the investment to the prescribed volume within the time limit as provided for in relevant
provisions of the state.

Article 8

The equity joint foreign trade corporation shall, in accordance with the state’s pertinent regulations, deal in or serve as agent
for the import and export of cargo and technology and relevant services, and deal in the whole business for the commodities imported
by itself within the approved business scope.

Article 9

For the import and export commodities under the state quota and permit control, the equity joint foreign trade corporation cannot
handle them unless they have applied to the related state supervisory department in accordance with related laws and regulations
and obtained approval. As for the import and export commodities under the state control of quota bidding, the equity joint foreign
trade corporation shall tender for bids in accordance with the bidding regulations set down by the supervisory department.

Article 10

The foreign exchange revenue and expenditure of an equity joint foreign trade corporation shall be in conformity with the relevant
provisions of the state concerning foreign exchange.

Article 11

An equity joint foreign trade corporation shall pay taxes according to relevant laws and regulations and rules on taxation. Its shall
be enpost_titled to enjoy tax rebates or tax exemption on export cargoes in accordance with relevant laws, regulations and rules of the
state.

Article 12

An equity joint foreign trade corporation shall submit statements of finance, accounting, and statistics on a regular basis to the
local supervisory departments in accordance with the related laws and regulations on finance, accounting and statistics.

Article 13

An equity joint foreign trade corporation shall apply to join the Import and Export Chamber or the Association for Foreign-funded
Enterprises and shall obey the coordination of the Chamber or the Association.

Article 14

An equity joint foreign trade corporation shall comply with the Chinese laws and regulations, and is under the jurisdiction of Chinese
laws and regulations. Its legal rights and interests shall be subject to the protection of Chinese laws and regulations. If the equity
joint foreign trade corporation violates Chinese laws and regulations, it shall be subject to punishment accordingly.

Article 15

The present measures shall apply to the equity joint foreign trade corporations jointly established by companies or enterprises from
Hong Kong, Macao, and Taiwan with counterparts from the Chinese mainland.

Article 16

Before December 11, 2003, the application for the establishment of an equity joint foreign trade corporation, in which the registered
capital provided by the Chinese investor is less than 51%, shall not be accepted for the time being.

Article 17

The power to interpret the present Measures shall remain with the Ministry of Foreign Trade and Economic Cooperation.



 
The Ministry of Foreign Trade and Economic Cooperation
2003-01-31

 






DECISION ON AMENDING THE INTERIM PROVISIONS CONCERNING THE ESTABLISHMENT OF INVESTMENT COMPANIES BY FOREIGN INVESTMENT AND THE SUPPLEMENTARY PROVISIONS

20030710

The Ministry of Foreign Trade and Economic Cooperation

Decree of the Ministry of Foreign Trade and Economic Cooperation

No.4

The Decision on Amending the Interim Provisions Concerning the Establishment of Investment Companies by Foreign Investment and the
Supplementary Provisions were adopted at the 4th ministerial office meeting of the MOFTEC, which is hereby promulgated and shall
be implemented thirty days upon the date of the promulgation.

Minister Shi Guangsheng

March 7, 2003

Decision on Amending the Interim Provisions Concerning the Establishment of Investment Companies by Foreign Investment and the Supplementary
Provisions

In order to promote the investment of transnational companies in China, introduce advanced foreign technologies and management experiences,
and perfect the functions of investment companies, hereby is to amend the Interim Provisions Concerning the Establishment of Investment
Companies by Foreign Investment (hereinafter referred to as the Interim Provisions), the Supplementary Provisions on the Interim
Provisions Concerning the Establishment of Investment Companies by Foreign Investment (hereinafter referred to as the Supplementary
Provisions), and the 2nd Supplementary Provisions on the Interim Provisions Concerning the Establishment of Investment Companies
by Foreign Investment (hereinafter referred to as the 2nd Supplementary Provisions) promulgated by the MOFTEC as of 1995.

I.

Item 4 of Article 3 of the Interim Provisions is amended as: The balance sheet of the investors of the past three years audited by
force of law.

II.

Article 4 of the Interim Provisions is amended as: foreign investors shall contribute to the registered capital of the investment
company with freely convertible currencies, or RMB profits obtained in China or legitimate RMB gains or proceeds from the transfer
of shares or liquidation activities. Chinese investors may make contribution to the registered capital with Renminbi. In case foreign
investors contribute to the registered capital of the investment company with legitimate RMB gains or proceeds, they shall submit
the relevant certification and vouchers for payment of taxes. The capital contribution shall be paid in within two years upon issuance
of the business license.

III.

Article 5 of the Interim Provisions is amended as: Upon establishment with approval by the MOFTEC, the investment companies may undertake
the following businesses according to the actual requirements by the operational activities engaged in China:

(I)

Investment in the fields permitted for foreign investment by the state.

(II)

With written authorization by the enterprises invested (through unanimous consent by the Board of Directors), providing the following
services to the enterprise invested:

1.

Assisting or acting as agency in purchasing for the enterprise invested machinery equipment, office equipment, raw materials, components,
spare parts at home and abroad fro self use by the enterprises invested and selling the products produced by the enterprises invested
at home and abroad, as well as providing after-sale services;

2.

Balancing foreign exchanges among the enterprises invested with consent and supervision of the administration of foreign exchanges;

3.

Providing enterprises invested with technical supports, personnel training, internal personnel management and other services during
the production, sales and market development of products;

4.

Assisting the enterprises invested in seeking for loans and provision of guarantee;

(III)

Setting up scientific research and development center or department in China for undertaking of research and development of new products
and high-tech, transferring the R&D results and providing the corresponding technical services.

(IV)

Providing its investors with advisory services, and providing its associated companies with market information on investment and advisory
services relating to investment policies.

IV.

Article 16 of the Interim Provisions is amended as: In case the investment companies invest in establishing enterprises, the investment
made by the investment company or jointly with other foreign investors should not be less than 25% of the registered capital of the
enterprises to be established, which enjoy the treatment granted to foreign-invested enterprises with issuance of certificate of
approval of foreign-invested enterprises and business license of foreign-invested enterprises.

V.

Article 1 of the Supplementary Provisions is amended as follows: In case the registered capital of the investment company is no less
than USD30m, its loan shall not exceed four times that of the paid-in registered capital and in case the registered capital of the
investment company is no less than USD100m, its loan shall not exceed six times that of the paid-in registered capital. In case the
loan of the investment company would exceed the above-mentioned quota as required by its operations, application should be made to
the MOFTEC for approval.

VI.

Article 2 of the 2nd Supplementary Provisions is amended as follows: the investment company may as sponsor prepare and establish
foreign-invested joint-stock companies or hold the corporate shares of foreign-invested joint-stock companies that have not been
public listed. The investment company may also hold the corporate shares of other joint-stock companies in the territory of China
that have not been public listed. The investment company shall be deemed as foreign sponsor or shareholders of the joint-stock companies.

VII.

Article 5 of the 2nd Supplementary Provisions is amended as follows: the importation by the investment company of systematically
complete set of products or trial-sale products should go through the formalities in compliance with the relevant stipulations, with
the cash contribution, profits of foreign exchanges or loans outside China of foreign exchanges in the registered capital of the
investment companies. The accumulated annual importation amount mentioned above should not exceed 35% of the cash foreign exchanges
in the registered capital. Any balance of the accumulated annual importation amount that does not exceed 35% of the cash foreign
exchanges in the registered capital of the year should not be passed for use by the next year.

VIII.

Article 3 , Article 4 , Article 5 and Article 6 of the Supplementary Provisions and Articles 1, 3, 4 and 6 of the 2nd Supplementary
Provisions are consolidated and amended as:

Upon the establishment of the investment company, if the operations are undertaken by force of law without records of legal violation,
with registered capital paid in timely as specified by the Articles of association and if the paid-in capital by the investors is
no less than USD30m that has been used as investment in the enterprises invested, the investment company may with the examination
and consent by the local foreign economic and trade administration of provinces, autonomous regions, municipalities directly under
the Central Government or municipalities separately listed on the state plan apply to the MOFTEC, and upon approval undertake the
following businesses according to the actual requirements of its operations in China:

(I)

With written authorization by the enterprises invested (through unanimous consent by the Board of Directors), undertaking the following
businesses:

1.

Selling he products produced by the enterprises invested by distribution in the market at home and abroad; and

2.

Providing the enterprises invested with transportation, warehousing and integrated services.

(II)

Exporting domestic commodities not involved in export quota or licensing administration by agency, distribution or establishing export
and purchasing institutions;

(III)

Purchasing the products produced by the enterprises invested and selling them at home and abroad after system integration, and in
case the products produced by the enterprises invested may not fully satisfy the demands of system integration, the investment company
is allowed for purchasing complementary products at home and abroad for system integration with the value of the purchase not exceeding
50% of total value of all the products required for the system integration;

(IV)

Providing relevant technical trainings for the domestic distributors and agent of the enterprises invested and domestic companies
and enterprises that have reached agreements on technological transfer with the investment companies or their parent companies;

(V)

For the aim of the development of the product market prior to the production or the production of new products of the enterprises
invested, the investment companies are allowed for importing small amount of products from their parent companies identical or similar
to the products to be produced by the enterprises invested for domestic sales on trial that are not under import quota administration;

(VI)

Providing the enterprises invested with operational leasing services of machine and office equipments;

(VII)

Providing after-sale services for the products produced the parent companies; and

(VIII)

Participating in project contracting outside China of Chinese enterprises qualified for operations of foreign contracting projects
according to the relevant state provisions.

In applying for operation of the above-mentioned businesses, the investment company shall submit the following documents to the examination
and approval authority:

(I)

Application signed by the legal representative of the investment company;

(II)

Resolution of the Board of directors of the investment company;

(III)

Amended Articles of Association of the investment company;

(IV)

Certificate for approval of the investment company (copy) and business license (copy), as well as the report on asset appraisal issued
by Chinese certified public accountants; and

(V)

Report on asset appraisal for the enterprises invested that is issued by Chinese certified public accountants.

IX.

In case the Decision is of discrepancy with the Interim Provisions Concerning the Establishment of Investment Companies by Foreign
Investment, the Interpretation on the Issues Relating to the Interim Provisions Concerning the Establishment of Investment Companies
by Foreign Investment, the Supplementary Provisions on the Interim Provisions Concerning the Establishment of Investment Companies
by Foreign Investment or the 2nd Supplementary Provisions on the Interim Provisions Concerning the Establishment of Investment Companies
by Foreign Investment, this Decision shall prevail.

X.

The Decision shall enter into force thirty days after its promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation
2003-03-07

 






CIRCULAR ON THE NOTIFICATION OF THE EXCHANGE INSTRUMENT AND STARTING TIME FOR THE REPURCHASE OF OPEN MARKET BUSINESS BONDS

Circular on the Notification of the Exchange Instrument and Starting Time for the Repurchase of Open Market Business Bonds

[2003] No.5

All primary dealers:

Pursuant to the spirit of the Notice of the People’s Bank of China on the Listing and Exchange of Bonds in the National Inter-Bank
Bond Market (Yin Fa [2003] No. 71), as from the date of promulgation of the present Announcement, the national debts newly released
on the national inter-bank bond market, the financial bonds of national development banks and the financial bonds of China import
and export banks, save and except those that may not be regarded as exchange instrument for repurchase of open market business as
determined by the People’s Bank of China, may be utilized as exchange instrument for the repurchase of open market business bonds.
The starting time shall be the listing date of each period of bond as publicized by China Government Securities Depository Trust
& Clearing Co., Ltd. and the National Inter-bank Funding Center based on the authorization of the People’s Bank of China.

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

April 7, 2003



 
The People’s Bank of Chinacpdf/c05723.pdf
2003-04-07

 






CIRCULAR OF THE MINISTRY OF FINANCE ON DISTRIBUTING THE INTERIM MEASURES FOR ACCOUNTING PROCESS OF TAKING UP BUSINESSES RELATED TO FINANCING OF RECEIVABLE CREDITOR’S RIGHTS BETWEEN ENTERPRISES AND FINANCIAL ORGANIZATIONS LIKE BANKS

The Ministry of Finance

Circular of the Ministry of Finance on Distributing the Interim Measures for Accounting Process of Taking up Businesses Related to
Financing of Receivable Creditor’s Rights between Enterprises and Financial Organizations like Banks

CaiKuai [2003] No. 14

May 15, 2003

Financial Offices (Bureaus) of Provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan, relevant ministries and commissions of the State Council and relevant enterprises:

In order to regulate the accounting process of financing businesses between enterprises and financial organizations like banks, Interim
Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks has been printed and now is distributed to you. Please do comply with it. Please feed back
the problems presented in the implementation to the Ministry of Finance as soon as possible.

Attachment: Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between
Enterprises and Financial Organizations like Banks is enclosed Attachment:Interim Measures for Accounting Process of Taking up Businesses Related to Financing of Receivable Creditor’s Rights between Enterprises
and Financial Organizations like Banks

To regulate the accounting process of financial businesses between enterprises and financial organizations like banks, provisions
on accounting process of associated businesses are enacted herein:

I.

The accounting principles of financing of receivable creditor’s rights

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
The principle that quality overweighs form should be taken into account for accounting, the economic nature of business being fully
considered. The selling of receivable creditor’s rights is valid and related profit and loss must be confirmed when there is clear-cut
evidence seeing associated dealing actually meets the requirements of confirming sale. For instance, when the risk and payment related
to receivable creditor’s rights in effect has been transferred. Otherwise, it should be regarded as the loan with a pledge of receivable
creditor’s rights and correspondent accounting treatment should be complied with.

II.

Accounting treatments of the loan with a pledge of receivable creditor’s rights

If enterprises give banks receivable creditor’s rights generating from sale contracts for providing services as a pledge for the loan,
the risk and payment associated with receivable creditor’s rights are not transferred. Under this circumstance, it is still the enterprise
that owns receivable creditor’s rights and it is responsible for gathering payment from customers and bears the possible risks of
receivable creditor’s rights. Meanwhile, the enterprise should regularly pay the loan as well as its interest back to the financial
organizations like banks.

When the loan is obtained with a pledge of receivable creditor’s rights, the enterprise should debit the received payment against
the item of bank account, the actually paying commission charge against the item of financial expense and credit the principles and
interest to items of short-term loan etc.

When receiving the payment from customers, the enterprise should debit the payment against the items such as cash and bank account
and credit to the item of receivable account.

As for the interest of loan generating in the enterprise and the accounting treatments of the principles and interest of the loan
paid by the enterprise to financial organizations like banks, the associated regulations of loan in Enterprise Accounting System
should be complied with.

Since the above-mentioned risk and payment related to receivable creditor’s rights as a pledge do not change substantially, the enterprise
should consider the situation of the debtor and reasonably withdraw bad debt reserves of receivable creditor’s rights as the pledge
in accordance with the provisions in Enterprise Accounting System. The selling withdrawal, selling discount and bad debt associated
with receivable creditor’s rights as the pledge should be dealt with in accordance with the provisions in Enterprise Accounting System.

The enterprise should have record books for future reference. All the issues such as account value, pledge term and payment of receivable
creditor’s rights as the pledge should be particularly recorded.

III.

Accounting treatment related to the selling of receivable creditor’s rights.

(I)

Accounting treatments concerning the selling of receivable creditor’s rights un-attached right of recourse

Enterprises sell to financial organizations like banks receivable creditor’s rights generating from sale contracts for providing services.
If no right of recourse is validly mentioned in the contract signed between the enterprises, debtors and banks, that is to say, financial
organizations are not enpost_titled to seek for compensation from the enterprise that sold receivable creditor’s rights when the withdrawal
of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable creditor’s rights is totally undertaken
by financial organizations like banks. Under that circumstance, the accounting treatment should comply with the following provisions.

An enterprise should, in accordance with the contract signed between the enterprise and a financial organization like bank, debit
the received amount against the item of bank account, the predicted sum of selling withdrawal and selling discount (including cash
discount, the same below) presented in the contract against the item of other account receivables, the withdrawn bad debt reserve
of receivable creditor’s rights against the item of bad debt reserve, the amount of related due commission charge against the item
of financial expense, and credit the account value of selling receivable creditor’s rights to the item of account receivables while
debit the balance against the item of extra expense—the financing loss of receivable creditor’s rights or credit the item of extra
income—the financial proceeds of receivable creditor’s rights.

When the practically-generating selling withdrawal and selling discount associated with the selling of receivable creditor’s rights
equals to the amount that have been booked in the item of other receivables, the enterprise should debit the practical amounts of
selling withdrawal and selling discount against the items such as major business income (cash discount should be debit against the
item of financial expense, the same below), value-added tax which can be reduces or charged against the item of paying tax—paying
value-added tax (sale tax ) and credit the predicted selling withdrawal and selling discount associated with the sold creditor’s
rights of receivables that have been booked in the item of other account receivables to the item of other receivables. If there is
balance between the amounts of selling withdrawal and selling discount that practically generated and are related to receivable creditor’s
rights as well as the amounts booked in the item of other account receivables, the accounting treatments should be adopted in accordance
with the above provisions. What’s more, the amounts of selling withdrawal and selling discount paid to the financial organizations
like banks as the counterbalance should be booked in the items such as other account receivables or bank account and the amounts
of selling withdrawal and selling discount obtained from the financial organizations like banks should be booked in the items like
other account receivables or bank account.

The provisions in Enterprise Accounting System and other related rules of accounting should be complied with when the above selling
withdrawal and selling discount of the enterprise belong to the future item in balance sheet.

(II)

Accounting treatments related to the selling of receivable creditor’s rights attached right of recourse

If right of recourse is validly mentioned in the selling process of receivable creditor’s rights, that is, financial organizations
have the right to seek for compensation from the enterprise that sold receivable creditor’s rights or the enterprise is obliged to
buy back from the financial organizations like banks a portion of receivable creditor’s rights at an agreed price in accordance with
the agreement when the withdrawal of the creditor’s receivables cannot be fulfilled at term, the risk in the selling of receivable
creditor’s rights is totally undertaken by the enterprise that sold receivable creditor’s rights. Under that circumstance, the accounting
treatment about the loan obtained with the pledge of receivable creditor’s rights in the provision should be complied with.

IV.

Accounting treatments on discount of receivable creditor’s rights

According to the agreement signed between an enterprise and a financial organization like a bank, if the discount of receivable creditor’s
rights is actually in effect, its accounting treatment should comply with the relevant provisions on the discount of notes receivable
in Enterprise Accounting System.

V.

The exposure of the selling and financing businesses based on receivable creditor’s rights

An enterprise should expose the details of these businesses in the annotations of the accounting report forms if the above-mentioned
businesses such as selling business and financing business are based on receivable creditor’s rights. The details include:

(I)

The main contents of the selling and financing agreements signed between the enterprise and the financial organization like a bank.

(II)

The basic situations of receivable creditor’s rights concerning the selling and financing business, including amount, term, and distilled
bad debt reserve.

(III)

The details of the loan obtained with receivable creditor’s rights as the pledge, such as the amount of the loan, interest rate, term,
the account value of receivable creditor’s rights as the pledge and etc.

(IV)

The amounts of current net profit and loss influenced by the selling of receivable creditor’s rights

(V)

The account value, the received amounts after discount and the discount term of the discounted creditor’s rights of receivables.



 
The Ministry of Finance
2003-05-15

 






MEASURES FOR QUALIFICATION REGISTRATION OF GEOLOGICAL RECONNAISSANCE

The Ministry of State Land Resources

Notice of the Ministry of State Land Resources on Printing and Issuing Measures for Qualification Registration of Geological Reconnaissance

Guo Tu Zi Fa [2003] No.218

The ministries of state land resources of every province, autonomous region and municipality directly under the Central Government
(the ministry of state land environment resources, bureau of state land resources and housing, bureau of housing and land resources,
bureau of state land resources and planning):

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance, to strengthen the supervision of the ability of the geological reconnaissance and to promote the development of geological
reconnaissance work, in accordance with regulations of the Mineral Resources Law of the People’s Republic of China and the Measures
for Registration Administration of the Reconnaissance Blocks of Mineral Resources, the ministry decided to set up registration system
and formulated Measures for Qualification Registration of Geological Reconnaissance, the measures are hereby printed and issued,
please carry out.

The Ministry of State Land Resources

June 24, 2003

Measures for Qualification Registration of Geological Reconnaissance

Article 1

In order to standardize the conditions for the access to geological reconnaissance market, to maintain the market order of geological
reconnaissance and to promote the development of geological reconnaissance work, the Measures are hereby formulated in accordance
with the Mineral Resources Law of the PRC and the Measures for Registration Administration of the Reconnaissance Blocks of Mineral
Resources.

Article 2

Registration shall go through in compliance with the Measure for obtaining the qualification certificates of geological reconnaissance
in case geological reconnaissance is undertaken in the territory and other sea jurisdiction of the PRC.

Article 3

The qualifications for geological reconnaissance are classified by nature of the professions of geological reconnaissance and the
registration should be kept according to the requirements of geological reconnaissance capability and level.

The professional classifications of the qualifications for geological reconnaissance and the conditions for registration are separately
promulgated.

Article 4

The Ministry of State Land Resources and the administrative departments of sate land resources of the people’s government of provinces,
autonomous regions and municipalities directly under the Central Government are the registration authorities of the qualifications
for geological reconnaissance.

The scope of functions of the Ministry of State Land Resources is as follows:

(I)

Registration of the qualifications for oceanic geological survey, oil and gas mineral reconnaissance, aviation physical geographical
reconnaissance, and aviation remote sensing geological reconnaissance;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
of the whole country;

(III)

Supervision management on the registration of qualifications for geological reconnaissance by the administrative departments of sate
land resources of the people’s government of provinces, autonomous regions and municipalities directly under the Central Government
as well as the qualifications for geological reconnaissance of the whole country.

The scope of functions of the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government provinces, autonomous regions and municipalities directly under
the Central Government is as follows:

(I)

Registration of the qualifications for geological reconnaissance other than that specified in Item (I) of the above-mentioned clause
of this article;

(II)

Summarization, publication and provision of query services of information on registration of the qualifications for geological reconnaissance
in the corresponding administrative divisions;

(III)

Supervision management on the registration of qualifications for geological reconnaissance in the corresponding administrative divisions.

Article 5

The applicants for geological reconnaissance qualifications shall be enterprises or institutional unites directly engaged in the undertakings
of geological reconnaissance, which besides the requirements for a legal person shall meet the following conditions for the geological
reconnaissance qualifications.

Article 6

In applying for the geological reconnaissance qualifications, the applicant shall provide the registration authority with the following
materials:

(I)

Application for qualification registration of geological reconnaissance;

(II)

Documents or copy of the certification of the legal person;

(III)

Documents or copy of the positions of the legal representative and the responsible technological persons;

(IV)

Documents or copy of the certification of assets;

(V)

Name list of technicians and copies of the technical post_title and qualifications of senior and medium-level technicians;

(VI)

List of the main reconnaissance instruments and equipment;

(VII)

Other necessary materials required for submission by the registration authority.

In case of application for the qualification of oil and gas mineral reconnaissance, the documents or copy of the approval of the State
Council should be submitted for establishment of oil companies or consent of oil and gas mineral reconnaissance.

Article 7

Within 30 days upon receipt of the application for qualification registration of geological reconnaissance, the registration authority
shall check and verify the truthfulness of the application materials, and draw conclusions on whether or not the registration is
qualified in compliance with the requirements for the conditions of the geological reconnaissance qualifications, together with notices
given to the applicant.

If modification or supplementary materials are required from the applicant, the registration authority shall notify the applicant
of modification or supplementation within the term specified.

In case the registration conditions meet the requirements, the applicant shall within 30 days upon receipt of the notice handle with
the registration formalities and obtain the qualification certificates of geological reconnaissance and become the registered entity
eligible for geological reconnaissance, which can undertake the geological reconnaissance work by force of law within the registration
scope.

In case of failure to meet the registration requirements, the registration authority shall provide the applicant with the reasons
thereof.

Article 8

The qualifications of geological reconnaissance adopt the uniform inspection system at the intervals of inspection once two years
to be executed in December. And the uniform inspection work will be in the charge of the registration authority.

At the time of uniform inspection the registration holder shall carry the qualification certificate of geological reconnaissance (original
and duplicate) and fill in and submit the Uniform Inspection From of Geological Reconnaissance at the original registration authority
and accept the uniform inspection.

In qualified for the uniform inspection, the registration authority shall cover the special stamp on the qualification certificate
of geological reconnaissance (duplicate), and if not qualified, the registration authority shall proceed in compliance with the provisions
of Article 9 of the Measures.

In case of failure to accept the uniform inspection beyond the time schedule, the qualification certificate of geological reconnaissance
will automatically become invalid.

Article 9

in case of any of the following circumstances during the uniform inspection, the uniform inspection authority shall proceed as degrading
of the qualifications, and notify the inspected to handle with the formalities for alteration of the registration.

(I)

When the reconnaissance capabilities are lower than the requirements of the corresponding classifications;

(II)

Having not undertaken such classification of geological reconnaissance activities consecutively for two years;

(III)

Material negligence or violations of law in some type of reconnaissance works.

In case of any of the circumstances specified in Article 16 of the Measures, the registration authority will revoke the registration
qualifications and proceed according to Article 6 of the Measures.

Article 10

Eligible for the following conditions, the registration holder may apply for adding the business scope at the original registration
authority and verified in compliance with the requirements of the registration conditions, the original registration authority shall
notify the registration holder to handle with the formalities for alteration of the registration.

(I)

Expiry of two years of various reconnaissance works with qualified uniform inspections;

(II)

The working capacity for newly added reconnaissance work having reached the corresponding conditions and requirements of the added
business items; and

(III)

Free of material negligence or violations of law in various reconnaissance works.

Article 11

In any of the following cases, application should be made to the registration authority within 30 days for handling with the formalities
for alteration of the registration.

(I)

Consolidation, separation and renaming of the legal person;

(II)

Alteration of the domicile of legal person and the legal representative;

(III)

Addition or reduction of business classifications;

(IV)

Alteration required for by the laws, administrative regulations, rule and stipulations.

Article 12

In case of loss of the qualification certificates of geological reconnaissance (original and duplicate), announcement must be made
on the media designated by the Ministry of State Land Resources before application is made at the original registration authority
for handling with the formalities for repeated issuance of the certificates.

Article 13

The applicant shall provide the registration authority with true registration materials without any falsehood, and may not refuse
the inspection.

The registration authority should keep confidential the applicant’s materials relating to commercial secrets.

Article 14

The administrative departments of sate land resources of the people’s government of provinces, autonomous regions and municipalities
directly under the Central Government shall in the first month each year submit the Ministry of State Land Resources with the annual
reports of the previous year on the administration of the qualification registration of geological reconnaissance, which annual report
shall include: work survey, main achievements, existing issues, working plan, opinions and suggestions of the coming year.

Article 15

The registration authority shall regularly make random sampling inspection and evaluation on the professional capabilities and performance
of the registration holder and set up the practice archives thereof, and their practice behaviors, reputation maintenance, results
of sampling evaluation, social claims and defaults should be recorded in their practicing archives.

Article 16

In any of the following cases on the part of the registration holder, the registration authority shall not grant it with the qualification
registration of geological reconnaissance for three years.

(I)

Conceal of facts and falsehood in the relevant materials;

(II)

Failure to handling with the formalities for alteration of the registration in compliance with the relevant provisions of the Measures;

(III)

Participating in the reconnaissance without the license for mineral resource reconnaissance or undertaking of reconnaissance by tort;

(IV)

Subcontracting the implementation to the unit or individual without the qualification certificates of geological reconnaissance;

(V)

Undertaking of geological reconnaissance beyond the approved scope of reconnaissance;

(VI)

Mortgage, leasing or transferring of the qualification certificates of geological reconnaissance;

(VII)

Other material negligence or violations of law; or

(VIII)

Noncompliance with the professional ethic standards or breach of the principle of good faith.

Article 17

In case of abuse of positions for private purposes on the part of the workers of the registration authority that constitutes a crime,
criminal responsibilities shall be prosecuted, and in case no crime has been constituted, administrative punishment may be accorded
buy force of law.

Article 18

The qualification certificates of geological reconnaissance are divided into originals and duplicates, which are equally authentic.

The qualification certificates of geological reconnaissance are not restricted by administrative divisions, which are valid throughout
the country.

Article 19

The qualification certificates of geological reconnaissance are uniformly printed by the Ministry of State Land Resources, which is
in charge of uniformly formulating the application forms of the qualification registration of geological reconnaissance, the forms
for uniform inspection of the qualifications of geological reconnaissance, the special stamp for the qualification registration of
geological reconnaissance, and the special stamp for the uniform inspection of the qualifications of geological reconnaissance.

Article 20

In case of registration by the administrative departments of sate land resources of the people’s government of provinces, autonomous
regions and municipalities directly under the Central Government in violation of the provisions of the Measures, the Ministry of
State Land Resources is enpost_titled to make corrections thereof.

Article 21

Foreign investors and investors from Hong Kong, Macao and Taiwan that apply for registration of the qualifications of geological reconnaissance
shall proceed in compliance with the provisions of the Measures and special provisions, if any, specified by laws and administrative
regulations shall apply.

Article 22

Those entities that have obtained the qualification certificates of geological reconnaissance prior to the implementation of the Measures
shall apply with the registration authority for registration in compliance with Article 4 of the Measures, and by the end of the
registration work, the previous qualification certificates of geological reconnaissance will become invalid automatically.

Article 23

The Measures shall come into force as of the date of promulgation.



 
The Ministry of State Land Resources
2003-06-24

 






PROVISIONS ON THE MANAGEMENT OF GREEN PASSAGEWAY SYSTEM FOR INSPECTION AND QUARANTINE OF EXPORT GOODS

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 marks￿￿keeping
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 quarantine￿￿and

(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

 






Error

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE EXPORT REBATE RATES






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.htmAnnex 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

84073410, 84073420
84082010-84089010
84089092-84089093
87012000-87079090
87161000-87169000
84099191-84099199
84099991-84099999
8708

Automobiles and their key components and parts

The same as above

8456-8460, 8462

Digital control machine tools, machining centers,  combined machine tools

 

8425-8430
84671100-84678900
84743100-84748090
84791021-84791090

Machines for hoisting or

construction use,  mechanical hoisting equipment,  machines for construction and mining

The same as above

851730-85175029

Program-controlled telephone,  telegram exchanger,  optical communication equipment

 

9018-9020, 90221200-90221400
90222100

Medical apparatuses and appliances

 

8601-8606

Railway locomotives

 

84713000

portable digital automatic data processing devices below 10 kilograms

 

88

Aircrafts and spacecraft

 

8454-8455

Metal smelting equipment

 

8534

Printing circuits

 

￿￿

￿￿Annex 2:

Catalogue of Products of Which the Refund Tax Rate is Adjusted to 13%  

￿￿






HS Codes

Commodity Description

Tax Refund Rates After Adjustment

Remarks

1. Edible Flour

￿￿

￿￿

￿￿

1101

Wheat or maslin flour

13%

￿￿

11022000

Maize (corn) flour

13%

￿￿

11023010

Nonglutinous rice flour

13%

￿￿

11023090

Other rice flour

13%

￿￿

11031100

Groats and meal of wheat

13%

￿￿

11031300

Groats and meal of maize (corn)

13%

￿￿

11031921

Coarse grains and meal of nonglutinous rice

13%

￿￿

11031929

Coarse grains and meal of other rice

13%

￿￿

11032010

Wheat pellets

13%

￿￿

11081100

Wheat starch

13%

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

State Administration of Taxation

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 Taxation
2003-11-13

 



MEASURES FOR THE ADMINISTRATION OF THE LANDING OF OVERSEAS SATELLITE TELEVISION CHANNELS

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

 



1...567...22Page 6 of 22

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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