CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE TRANSITIONAL POLICY AND MEASURES AFTER CANCELING ADMINISTRATIVE EXAMINATION AND APPROVAL OF FOREIGN EXCHANGE ADMINISTRATION OF SOME CAPITAL PROJECTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Transitional Policy and Measures after Canceling Administrative Examination
and Approval of Foreign Exchange Administration of Some Capital Projects

HuiFa [2003] No.50

April 3, 2003

Branches and foreign exchange administration departments under the State Administration of Foreign Exchange in provinces, autonomous
regions and municipalities directly under the Central Government, and branch administrations of Shenzhen, Dalian, Qingdao, Xiamen,
Ningbo:

Decisions of the State Council on Canceling the First Batch of Administration Examination and Approval Projects (GuoFa [2002] No.24)
and the Decisions of the State Council on Canceling the Second Batch of Administration Examination and Approval Projects and Altering
the Administrative Methods for Some Administration Examination and Approval Projects (GuoFa [2003] No.5) have been promulgated. In
order to ensure the smooth linking of the administration of capital projects and avoid disjoint after cancellation of relevant administration
examination and approval projects, relevant policy and measures for the transitional period are hereby made as follows:

Cancellation of examinations and approvals on the financing conditions of long-and-medium-term foreign debts of domestic Chinese-capital
organizations, on the financial conditions of financing and leasing of domestic Chinese-capital organizations, on the time selection
and financing conditions for issuing debts abroad, and on the financial conditions for project financing.

After cancellation of relevant examinations and approvals, in borrowing medium-long term foreign debts, issuing medium-long term bonds
denominated in foreign exchange, conducting aircraft financial leasing and project financing, Chinese-capital organizations shall
no longer be required to go through examination and approval formalities with administration of foreign exchange on terms of relevant
financing as they shall only be obliged to handle procedures on registration of foreign debts on a case by case basis after conclusion
of borrowing contracts.

During the course of the Chinese-capital organizations going through formalities of registration of foreign debts for above items
and during the course of enterprises with foreign investment going through formalities of registration of foreign debts for project
financing, capital raising and aircraft financial leasing, the branches and sub-branches of administration of foreign exchange shall
handle the registration in accordance with following procedures:

(I)

All branches and sub-branches of the administrations of foreign exchange shall verify borrowing qualifications of borrowers according
to operational procedures on borrowing qualifications concerning medium-long term international commercial loans, project financing,
aircraft financial leasing, issuance of bonds denominated in foreign exchange(see Attachment 1, Attachment 2, Attachment 3, Attachment
4). Qualification verifications for aircraft financial leasing, project financing and issuance of bonds denominated in foreign exchange
shall be conducted according to corresponding operational procedures for borrowing qualifications while checks on other forms of
medium-long term overseas borrowing (except for those made by enterprises with foreign investment) shall be conducted according to
operational procedures for borrowing qualifications concerning medium-long term international commercial loans.

(II)

Where the borrower meets the above verification requirements on borrowing qualifications, the branches and sub-branches of administration
of foreign exchange shall handle procedures of registration of conclusion of foreign debt contracts and of payment withdrawal, establishment
of special foreign debt account and settlement of foreign exchange and repayment of principals and interests and shall not require
the debtor to present prior approval documents issued by administrations of foreign exchanges.

(III)

Where the borrower does not meet the verification requirements on borrowing qualifications or where registration procedures does not
conform with requirements or where relevant articles in overseas borrowing arrangements do not conform with prevailing provisions
on administration of foreign exchange (such as account arrangement, guarantee arrangement, value preserving clause, etc.), the borrower
shall obtain written approval from the State Administration of Foreign Exchange in advance. The branches and sub-branches of administrations
of foreign exchange shall not handle registration procedures for the borrower without the written approval from the State Administration
of Foreign Exchange.

(IV)

Debtors shall handle withdrawal of payment after they have obtained certificates of registration of foreign debt issued by administration
of foreign exchange.

(V)

The branches and sub-branches shall handle registration of foreign debts of medium-long term overseas borrowings by Chinese-capital
organizations within the following time limits from the date on which all materials required by administration of foreign exchange
are presented by enterprises: 1. The branches and sub-branches shall grant the registration within 10 working days if no report to
and approval from the State Administration of Foreign Exchange is required. 2. The branches and sub-branches shall grant the registration
within 30 working days if no report to and approval from The State Administration of Foreign Exchange is required (which shall include
10 working days for The State Administration of Foreign Exchange to handle procedures).

II.

Cancellation of examination and approval on large amount financing by overseas branches of domestic Chinese-capital financial institutions

After cancellation of examination and approval on large amount financing by overseas branches of domestic Chinese-capital financial
institutions, the institutions shall not be required to handle prior examination and approval procedures with administration of foreign
exchange provided that they shall report the financing to administration of foreign exchange for the record in advance, which means
where a overseas branch of a domestic Chinese-capital financial institution raises commercial loans in a sum of 50,000,000 United
States dollars (inclusive) equivalent in one time, it shall report to the State Administration of Foreign Exchange for the record
10 working days in advance by its head office.

III.

Cancellation of examination and approval on establishment, alteration and cancellation of B share’s margin account opened with domestic
foreign-capital banks by securities companies

After cancellation of the examination and approval, the ways of management of administration of foreign exchange on establishment,
alteration and cancellation of B share’s settlement account (now referred to as the “clients transaction settlement account”) by
securities companies shall be as follows:

(I)

A securities company authorized to conduct foreign exchange business shall open domestic investor’s B share’s settlement account and
foreign investor’s B share’s settlement account separately with banks at its locality by presenting valid License for Conducting
Foreign Exchange Business in Securities Transactions and evidencing documents granting authorizations to conduct relevant businesses
issued by the CSRC etc.

A business department of a securities company authorized to conduct foreign exchange business shall open domestic investor’s B share’s
settlement account and foreign investor’s B share’s settlement account with banks at its locality by presenting power of attorney
of its head office, duplicate of License for Conducting Foreign Exchange Business in Securities Transactions of the securities company,
duplicates of evidencing documents granting authorization to conduct relevant businesses issued by the CSRC etc.

(II)

Within 3 days of establishment, alteration or cancellation of domestic investors’ B share’s settlement account and foreign investors’
B share’s settlement account, the securities companies or their business departments shall report to administration of foreign exchange
for the record.

(III)

The scope of receipt of a domestic investor’s B share’s settlement account shall be the foreign exchange funds transferred from its
domestic foreign exchange non-cash savings account or cash savings account and foreign exchange proceeds from foreign exchange securities
transactions. Its scope of payment shall be the foreign exchange needed in its foreign exchange securities transactions and transfers
therefrom to foreign exchange cash accounts opened with domestic commercial banks. No payment shall be remitted abroad.

The scope of receipt of a foreign investor’s B share’s settlement account shall be foreign exchange funds remitted from aboard by
the foreign investor or transferred from its domestic foreign exchange non-cash savings account and foreign exchange proceeds from
its foreign exchange securities transactions. Its scope of payment shall be the foreign exchange needed in its foreign exchange securities
transactions, transfers therefrom to foreign exchange non-cash accounts opened with domestic commercial banks and foreign exchange
funds to be remitted abroad.

IV.

Cancellation of examination on foreign exchange risks in making investment abroad by domestic institutions

Administration of foreign exchange shall no longer conduct examination on foreign exchange risks in making investment abroad and shall
simultaneously simplify examination procedures on source of foreign exchange capital for making investment abroad. For detailed rules
of operation please refer to the Circular of the State Administration of Foreign Exchange on Simplifying the Examination of Foreign
Exchange Capital Source of Investment Abroad (HuiFa [2003] No.43)

All Branches of the administrations of foreign exchange shall promptly transmit this Circular to designated banks of foreign exchange
at their locality and shall handle relevant business strictly according to requirements of the Circular.

This is hereby the notification.

Attachments:

1. Examination on the Qualifications of Chinese-capital Organizations for Borrowing Medium-long Term International Commercial Loans
(omitted)

2. Examination on the Qualifications for Borrowing under Project Financing (omitted)

3. Examination on the Qualifications for Borrowing under Aircraft Financial Leasing (omitted)

4. Examination on the Qualifications for Borrowing under Issuing Bonds Overseas (omitted)

The State Administration of Foreign Exchange
2003-04-03

MEASURES FOR THE QUARANTINE AND ADMINISTRATION OF HEREDITARY SUBSTANCE OF ENTRY ANIMALS

The State Administration of Quality Supervision, Inspection and Quarantine

Decree of the State Administration of Quality Supervision, Inspection and Quarantine

No. 47

The Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals, which were examined and adopted at the
administration affairs meeting of the State Administration of Quality Supervision, Inspection and Quarantine on April 3, 2003, are
hereby promulgated, and shall come into force on July 1, 2003.

Director General Li Changjiang

May 14, 2003

Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals

Chapter I General Provisions

Article 1

The present Measures are formulated in accordance with the Law of the Peoples Republic of China on Quarantine of Entry and Exit
Animals and Plants and the Regulation for the Implementation thereof as well as other laws and regulations with a view to regulating
the quarantine, supervision and administration of hereditary substance of entry animals, and protecting the production safety of
the animal husbandry in China.

Article 2

The present Measures shall be applicable to the quarantine, supervision and administration of hereditary substances of entry animals.

Article 3

Hereditary substances of animals mentioned in the present Measures means the semen, embryos and egg cells of mammals.

Article 4

The State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ) shall be uniformly
responsible for the quarantine, supervision and administration of hereditary substance of entry animals nationwide.

The entry and exit inspection and quarantine institutions set up by the SAQSIQ in all places (hereinafter referred to as the inspection
and quarantine institutions) shall be responsible for the quarantine, supervision and administration of hereditary substance of entry
animals within their respective jurisdictions.

Article 5

The SAQSIQ shall apply risk analysis administration to the hereditary substance of entry animals. On the basis of the result from
risk analysis, the SAQSIQ may conclude a bilateral quarantine agreement (including agreement, protocol, or memorandum, etc.) with
the relevant competent institution of the government of the country or region from which the hereditary substance of animals is to
be exported to China.

Chapter II Quarantine Examination and Approval

Article 6

Whoever intends to import hereditary substance of animals must go through the formalities of quarantine approval in advance, obtain
the Permit of the People Republic of China on Quarantine of Entry Animals and Plants (hereinafter referred to as the Quarantine Permit,
and stipulate in the trade contract or the relevant agreement the quarantine requirements of China.

Article 7

Whoever intends to apply for the examination and approval of quarantine of hereditary substance of animals shall submit the following
materials to the local inspection and quarantine administration directly under the SAQSIQ:

(1)

The Application Form for the Permit of the People Republic of China on Quarantine of Entry Animals and Plants;

(2)

For hereditary substance of animals imported by agency, a photocopy of the contract or agreement with the consignor for import by
agency shall be provided.

Article 8

The inspection and quarantine administration directly under the SAQSIQ shall finish the preliminary examination within the time prescribed
by the SAQSIQ. If the hereditary substance of animals is preliminarily examined as qualified, it shall be submitted to the SAQSIQ
for verification, and the SAQSIQ shall finish the verification within the prescribed time. If it is verified as qualified, the Quarantine
Permit shall be issued; if it is verified as unqualified, the Notice on Failure of the Application to be approved for the Permit
of the People Republic of China on Quarantine of Entry Animals and Plants shall be issued.

Chapter III Entry Quarantine

Article 9

Before the hereditary substance of animals is imported, the SAQSIQ may, on the basis of the needs in quarantine, send quarantine officers
to go to the exporting country or region to carry out pre-inspection of the place of origin of the hereditary substance of animals.

Article 10

The SAQSIQ shall apply quarantine registration to the foreign producers which export hereditary substance of animals to China, and
shall send quarantine officers either regularly or irregularly to appraise the registered foreign producers.

Article 11

Imported hereditary substances of animals shall enter the territory via the port designated by the Quarantine Permit.

Article 12

The consignor of hereditary substance of animals or his agent shall bring the Quarantine Permit, the trade contract or agreement,
the letter of credit, the invoices and other effective documents to report to the inspection and quarantine institution at the port
of entry for inspection before the hereditary substance of animals enters the territory; and shall, when the hereditary substance
of animals enters the territory, submit to the inspection and quarantine institution at the port of entry the original of the quarantine
certificate issued by the governmental quarantine institution of the exporting country or region.

Article 13

If, with respect to some certain hereditary substance of entry animals, there is no effective quarantine certificate issued by the
governmental quarantine institution of the exporting country or region, or the formalities for quarantine approval have not been
gone through, the inspection and quarantine institution at the port of entry may, in light of the specific situation, return or destroy
the said substance.

Article 14

When the imported hereditary substance of animals is carried to the port, the quarantine officers shall carry out the on-the-spot
quarantine:

(1)

Inspecting whether the quarantine certificate conforms to the Quarantine Permit and the requirements in the bilateral quarantine agreement
between China and the exporting country or region;

(2)

Checking whether the goods and the certificate are in conformity with each other;

(3)

Inspecting the packing and preservation of the goods.

Article 15

If the hereditary substance of animals is quarantined on the spot as qualified, the inspection and quarantine institution at the port
of entry shall issue the List for Customs Release of Entry Goods, and transfer the said substance to the place designated by the
Quarantine Permit carry out quarantine.

Article 16

If the hereditary substance of animals needs to be taken away from the port of entry, the consignor or his agent shall declare to
the inspection and quarantine institution at the destination, and provide the photocopies of the documents prescribed in Article
12 of the present Measures and the List for Customs Release of Entry Goods?issued by the inspection and quarantine institution
at the port of entry.

Article 17

The inspection and quarantine institution shall make quarantine as required by the Quarantine Permit. The hereditary substance of
animals quarantined as qualified shall be under the lawful quarantine supervision and administration of the inspection and quarantine
institution; while the one quarantined as unqualified shall be returned or destroyed under the supervision of the inspection and
quarantine institution.

Chapter IV Supervision of Quarantine

Article 18

The inspection and quarantine institution shall conduct quarantine supervision and administration on the processing, deposition and
use of the hereditary substance of entry animals (hereinafter uniformly referred to as use); and shall record the first generation
of descendents of the hereditary substance of animals.

Article 19

The entity using the hereditary substance of entry animals shall go to the inspection and quarantine administration directly under
the SAQSIQ at its locality to make the record

Article 20

The using entity shall fill out the Form on Record of the Entity Using Hereditary Substance of Entry Animals (Attachment 1), and provide
the following statement documents:

(1)

A photocopy of the document on proof of the entity status as a legal person;

(2)

Document stating that it has professionals familiar with the preservation, transport and use of the hereditary substance of animals;

(3)

Document stating that it has special depositary of hereditary substance of entry animals and other necessary facilities;

(4)

The relevant systems on administering the use of hereditary substance of entry animals.

Article 21

The inspection and quarantine administration directly under the SAQSIQ shall report to the SAQSIQ the using entities that have made
the record.

Article 22

The using entity shall fill out the File on Quarantine and Supervision of Hereditary Substance of Entry Animals (Attachment 2), and
accept the supervision of the inspection and quarantine institution; and shall, after the end of use of each batch of hereditary
substance of entry animals, submit the File on Quarantine and Supervision of Hereditary Substance of Entry Animals to the inspection
and quarantine institution for record.

Article 23

The inspection and quarantine institution may, when necessary, monitor the health of the descendents of the hereditary substance of
entry animals, and the relevant entities shall cooperate with the institution.

Chapter V Supplementary Provisions

Article 24

Whoever violates the present Measures shall be punished by the inspection and quarantine institution in accordance with the relevant
laws and regulations.

Article 25

The responsibility to interpret the present Measures shall remain with the SAQSIQ.

Article 26

The present Measures shall come into force on July 1, 2003.

htm/e03153.htmAttachment 1

Attachment 1:

Form on Filing of the Entity Using Hereditary Substance of Entry Animals

Applying unit
Address:
Legal representative		Legal person code
Tel:		Fax:	Email:
Nature of the unit	sp; State-owned enterprise titutional unit nt venture sp;Foreign-invested enterprise vate enterprise ers
According to the Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals, our unit is here to apply to use hereditary substances of entry animals. Our unit will in strict accordance with the Law of Entry and Exit Quarantine of Animals and Plants and the Regulation for the Implementation thereof as well as other laws and regulations accept supervision and instruction of the inspection and quarantine institutions, thus performing duties as stipulated in Measures for the Quarantine and Administration of Hereditary Substance of Entry Animals. Applying unitseal Legal representative (signature) Date:
Review opinions of the inspection and quarantine institutions: Responsible personsignature Date:

Formulated under supervision of the Administration of the Peoples Republic of China on Inspection and Quarantine of Entry and Exit.

Attachment 2:

File on Quarantine and Supervision of Hereditary Substance of Entry Animals

Filled by:

Filling dateFrom to

Formulated under supervision of the Administration of the Peoples Republic of China on Inspection and Quarantine of Entry and Exit.

Basic Situation of Hereditary Substance of Entry Animals

Used by		Contact person and telephone
Address		Legal representative and telephone
License of inspection and quarantine	Variety of hereditary substance	Exporting country
Import quality	Entry date	Entry port
Hereditary substance logo/quality

Service Condition of Hereditary Substance of Entry Animals

Used by (individual)

Address

Legal representative

Legal person code
(ID card)

Contact telephone

Service Condition

Hereditary substance logo

Time of use

Receptor logo

Effect of use

Birth date of descendant

Descendant logo

Descendant gender

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE AND CHINA INSURANCE REGULATORY COMMISSION ON THE RELEVANT ISSUES CONCERNING THE ADMINISTRATION OF SALE AND PAYMENT OF FOREIGN EXCHANGE IN OVERSEAS REINSURANCE CEDING

The State Administration of Foreign Exchange, China Insurance Regulatory Commission

Circular of the State Administration of Foreign Exchange and China Insurance Regulatory Commission on the Relevant Issues Concerning
the Administration of Sale and Payment of Foreign Exchange in Overseas Reinsurance Ceding

HuiFa [2003] No.75

June 20, 2003

The branches and departments of foreign exchange administration of the State Administration of Foreign Exchange (SAFE) in the provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen,
and Ningbo; the designated foreign exchange banks; and the insurance companies:

In order to implement the Interim Provisions on the Foreign Exchange Administration of Insurance Services, to regulate the reinsurance
made in foreign exchange, and to effectively disperse insurance risks, the following circular is hereby made concerning the relevant
matters of the administration of sale and payment of foreign exchange in overseas reinsurance ceding:

The domestic Chinese-invested insurance companies, Sino-foreign equity joint insurance companies, and branches of foreign insurance
companies in China (hereinafter referred as domestic insurance companies) that engage in overseas reinsurance ceding upon ratification
by the SAFE may, pursuant to the relevant provisions of China Insurance Regulatory Commission (CIRC), undertake overseas reinsurance
ceding of domestic insurances, and go through the formalities for purchase and payment of foreign exchange under overseas reinsurance
ceding pursuant to the provisions hereof. Branches of domestic insurance companies may not go through the formalities for purchase
and payment of foreign exchange under overseas reinsurance ceding.

Where a domestic insurance company reinsured overseas any domestic insurance made in foreign exchange, that company shall, by taking
with it the valid proofs, such as reinsurance bill or reinsurance payment list, etc., make the reinsurance payments from its foreign
exchange operation account with a domestic commercial bank, and may not purchase any foreign exchange to make the payment.

Where a domestic insurance company reinsured overseas any insurance made in RMB, it may, by taking with it the valid proofs, such
as the reinsurance bill or reinsurance payment list, etc., make the reinsurance payment from its foreign exchange operation account
with a domestic commercial bank; either may it, pursuant to Articles 4 through 7 hereof, apply to SAFE, and purchase foreign exchange
to make the reinsurance payment with a designated foreign exchange bank on the strength of the ratification document of the SAFE.

Where a domestic insurance company makes overseas excess of loss ratio reinsurance of any of its insurance made in RMB, it may apply
for purchasing foreign exchange to make the reinsurance payment according to the actual business needs.

Where a domestic insurance company make overseas reinsurance through contract or temporarily of the enterprise property insurance,
freight insurance, ship insurance, aviation insurance, space insurance, oil insurance, energy insurance, construction and installment
project insurance, liability insurance, nuclear station insurance, or any other type of insurance ratified by the CIRC that are made
in RMB, that insurance company may apply to the SAFE for purchasing foreign exchange to make the reinsurance payment if either of
the following conditions is satisfied:

(1)

The maximum insurance liability for a single insurance contract exceeds RMB50m;

(2)

The accumulative RMB premium income for a single insurance type exceeds the sum of the capital and the accumulation fund of that company.

Where a domestic insurance company meets the conditions for purchasing foreign exchange under overseas reinsurance specified in Articles
4 and 5, that company shall file the application with SAFE on a quarterly basis by taking with it the relevant documents, such as
the application for purchase of foreign exchange, the relevant insurance contracts or insurance data statistics, the audited balance
sheet and profit statement of the company of the previous year, the copy of the License for Foreign Exchange Services, etc. A once-and-only
application shall be filed with the SAFE with respect to any reinsurance contract for which the payment is made by installments.
In the application for purchase of foreign exchange, the insurance company shall respectively specify the amount of foreign exchange
purchased for excess of loss ratio reinsurances and contracts, and for temporary reinsurances.

Where the application for purchase of foreign exchange under overseas reinsurance has been ratified by the SAFE, the domestic insurance
company shall, when paying for the overseas reinsurance to overseas, make the payment with the designated foreign exchange bank through
purchase of foreign exchange on the strength of the valid proofs, such as the ratification document of SAFE, and the reinsurance
bill or reinsurance payment list, etc.

A domestic insurance company shall fill out the “Quarterly Statements of Foreign Exchange Services of Insurance Company” in an accurate
and timely manner (see HuiFa [2003] No.27), and shall indicate in the “Remarks” the overseas reinsurance operations of the previous
quarter; in the case of payment by purchase of foreign exchange, the amount of foreign exchange purchased, the time of purchase and
the bank for purchase, etc., shall be specified.

This Circular shall enter into force as of July 1, 2003.

Upon receipt of this Circular, the branches shall transmit it as soon as possible to the insurance companies and designated foreign
exchange banks within their respective jurisdictions; and the Chinese-funded designated foreign exchange banks shall transmit it
as soon as possible to their respective branches and sub-branches. Please promptly report any problem encountered in the execution
to the SAFE and the CIRC.

The State Administration of Foreign Exchange, China Insurance Regulatory Commission
2003-06-20

MEASURES FOR THE CLASSIFIED ADMINISTRATION OF ENTERPRISES MANUFACTURING EXPORT INDUSTRIAL PRODUCTS

The General Administration of Quality Supervision, Inspection and Quarantine

Decree of the General Administration of Quality Supervision, Inspection and Quarantine

No. 51

The Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products was adopted upon discussion
at the executive meeting of the General Administration of Quality Supervision, Inspection and Quarantine on June 19, 2003 and are
hereby promulgated. They shall come into force on October 1, 2003.

Li Changjiang, Minister

July 18, 2003

Measures for the Classified Administration of Enterprises Manufacturing Export Industrial Products

Chapter I General Provisions

Article 1

The Measures are formulated according to provisions stipulated in the Law of the People’s Republic of China on Import and Export Commodity
Inspection (hereinafter referred to as the Law of Commodity Inspection) and in its Regulations for Implementation, and for the purpose
of facilitating foreign trade, encouraging enterprises manufacturing export industrial products to improve their management level
and product quality, and of standardizing inspection and administration activities thereof.

Article 2

The Measures shall apply to the inspection, supervision and administration of enterprises manufacturing those export industrial products
as listed in the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine by the Import and Export Inspection
and Quarantine Authorities.

The Measures shall not apply to administration of enterprises manufacturing dangerous products and package thereof, products with
unsteady quality or products that need to be transported in bulk.

Article 3

The term “classified administration” in the Measures refers to an inspection administration method through which different inspection
supervision and management modes be applied to different enterprises manufacturing export industrial products, according to their
manufacturing conditions, management level, inspecting efficiency, product quality and the product risk degree and with a view to
reaching the goal of scientific management and effective supervision, and to promoting the export industry of China.

Article 4

General Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the AQSIQ) shall be responsible
for the unified management of classified administration of enterprises manufacturing export industrial products across the country.

Local entry-exit inspection and quarantine bureaus established by and directly under the General Administration of Quality Supervision,
Inspection and Quarantine (hereinafter referred to as the inspection and quarantine bureaus directly under the AQSIQ) shall be responsible
for the supervision and management of classified administration of enterprises manufacturing export industrial products within areas
under their jurisdiction.

Local entry-exit inspection and quarantine authorities established by the General Administration of Quality Supervision, Inspection
and Quarantine (hereinafter referred to as the inspection and quarantine authorities) shall be responsible for the application acceptance,
examination and daily inspection, supervision and management of the classified administration of enterprises manufacturing export
industrial products within areas under their jurisdiction.

Article 5

The inspection and quarantine authorities shall classify enterprises manufacturing export industrial products into three classes,
the first class, the second class and the third class, according to relevant regulations and shall exercise corresponding inspection
supervision and management.

Chapter II Enterprise Classification

Article 6

The first-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and to other relevant rules stipulated
by the AQSIQ;

(2)

It has sound quality management system, and has passed the ISO 9000 Quality Management System Certification or is equally competent
to effectively guarantee the product quality;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume with steady product quality;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality type of test by a designated laboratory according to
rules stipulated by the AQSIQ, and it must pass such a type of test;

(6)

It has established relevant export inspection systems and bodies, and has sound testing equipments and competent checkers who have
received relevant training and been registered by the inspection and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is no lower than 98%;

(8)

The enterprise has a high reputation for its good product quality, and no rejected goods, counterclaim or other accidents for the
sake of product quality has occurred within the recent two years.

Article 7

The second-class enterprise shall meet the following conditions:

(1)

It sticks to the Law of Commodity Inspection as well as its Regulations for Implementation, and other relevant rules stipulated by
the AQSIQ;

(2)

It has sound and effective quality management system;

(3)

It has obtained relevant certificates if the export products it manufactures are subject to Safety License System or Compulsory Product
Certification System;

(4)

It has a certain large scale of export volume;

(5)

Its products have passed random safety, healthy and environment protection inspection or testing and are proved to have met relevant
requirements. For those export products subject to yearly safety and quality test by a designated laboratory according to rules stipulated
by the AQSIQ, they shall pass such type of test;

(6)

It has necessary testing equipments and competent checkers who have received relevant training and been registered by the inspection
and quarantine authority;

(7)

The pass rate of the yearly block inspection by the inspection and quarantine authority is not less than 95%;

(8)

The products have good quality, and no rejected goods, counterclaim or other accidents due to the quality of the products occurred
within the late one year.

Article 8

Those enterprises which have not been listed into the first or second class, and which have engaged in export manufacture for less
than one year shall be classified as third-class enterprises.

Article 9

Export products manufactured by one enterprise but fall into different types or subject to different technical requirements may be
classified into different classes and be controlled respectively according to differences between their manufacturing conditions
and product quality.

Chapter III Application and Examination

Article 10

The enterprise manufacturing export industrial products which apply for the first or second class enterprise (hereinafter referred
to as the application enterprise) shall apply to the inspection and quarantine authority at its locality, and shall submit the following
materials:

(1)

a written application which includes the class to be applied, the name of the enterprise, the specification and type of the export
products, etc;

(2)

the qualified certificate of safety and quality test conducted according to rules stipulated by the AQSIQ;

(3)

certificates for quality management system certification and documents of quality management system;

(4)

certificates for the pass rate of yearly block inspection of the previous year produced by the inspection and quarantine authority
at its locality;

(5)

other relevant certificates if the enterprise and its export products are subject to Safety License System or Compulsory Product Certification
System.

Article 11

The inspection and quarantine authority shall organize examination to the application enterprise without undue delay.

The first-class-enterprise application shall be subject to the examination of the inspection and quarantine bureau directly under
the AQSIQ. If the applicant is qualified, the bureau shall report to the AQSIQ its initial examination conclusion and relevant materials.
The second-class-enterprise application shall be subject to the examination of the inspection and quarantine authority at its locality.
If the applicant is qualified, the authority shall report its initial examination conclusion and relevant materials to the inspection
and quarantine bureau directly under the AQSIQ.

Article 12

The inspection and quarantine authority shall, sticking to the relevant requirements and in light of the actual local situation, conduct
examination to the applicant’s product quality, quality management system, personnel, manufacturing and testing equipment and so
on.

The inspection and quarantine authority shall not conduct overlapped test or examination to any item of one enterprise during a same
year.

Article 13

the AQSIQ shall review the qualified first-class application and publicize the list of final approved enterprises.

The inspection and quarantine bureau directly under the AQSIQ shall review the qualified second-class applications and publicize the
list of final approved enterprises.

Chapter IV Inspection Supervision and Management

Article 14

The inspection and quarantine authority shall conduct random block inspection or inspection for each batch of industrial products
to be exported and manufactured by enterprises subject to classified administration according to their different classes.

(1)

The first-class enterprises: yearly random block inspection rate shall be 5% to 15%;

(2)

The second-class enterprises: yearly random block inspection rate shall be 30% to 45%;

(3)

The third-class enterprises: yearly random block inspection rate shall be 60% to 100%.

Article 15

The inspection and quarantine authorities shall have strict control on the yearly random block inspection rate, and shall work out
a suitable inspection supervision and management plan and keep relevant inspection records.

Article 16

The inspection and quarantine authority may, according to the actual circumstances, degrade an enterprise subject to classified administration
to a lower class if the enterprise commits any of the following wrongdoings:

(1)

the pass rate of yearly block inspection by the inspection and quarantine authority does not meet the requirements;

(2)

a foreign counterclaim arises due to serious quality problem;

(3)

unqualified products are incessantly found in the random inspections by the inspection and quarantine authority;

(4)

the enterprise’s checker makes false statements in the inspection;

(5)

other wrongdoings violating laws and regulations.

The degraded enterprise shall not apply for recovering its former class until 6 months later, and the application must be subject
to examination, review and publicity again.

Article 17

The enterprise manufacturing export industrial products subject to the classified administration shall submit its product quality
control and analysis report to the inspection and quarantine authority each year.

Article 18

The inspection and quarantine authority may choose different inspection supervision and management mode and apply it to the enterprise
manufacturing industrial products to supervise its product quality before they are marketed, according to the enterprise’s class,
the nature and risk degree of its products and in terms of relevant provisions.

Article 19

The period of validity of the classified administration to the enterprises manufacturing industrial products is two years, which shall
be counted as of the day of publication by the inspection and quarantine authority. If an enterprise wishes to continue the classified
administration, it shall, in terms of provisions in Article 10 of the Measures, go through the application procedure again 60 days
before the period of validity expires.

Article 20

As for the enterprise reapplying for classified administration, the inspection and quarantine authority shall streamline examination
procedures upon consideration of the ordinary supervision and management results, and if the enterprise is qualified, the authority
shall publicize the case after review and approval.

Article 21

If any important change occurs to the product designs, manufacturing techniques, technical conditions, and so on, of the enterprise
manufacturing export industrial products, the enterprise shall report it without delay to the inspection and quarantine authority,
and the authority shall newly recognize its class.

Chapter V Supplementary Provisions

Article 22

The inspection and quarantine bureaus directly under the AQSIQ shall formulate the implementation regulations for the Measures, according
to principles stipulated in the Measures and taking the actual local situations of their own areas into consideration, and shall
exercise the regulations after reporting it to the AQSIQ for record.

Article 23

The inspection and quarantine authority shall carry out annual reviews on the classified administration activities, and the inspection
and quarantine bureaus directly under the AQSIQ shall collect relevant materials and report them to the AQSIQ before the end of February
of the next year.

Article 24

The right to interpret the Measures shall remain with the AQSIQ.

Article 25

The Measures shall come into force on October 1, 2003.

The General Administration of Quality Supervision, Inspection and Quarantine
2003-07-18

INTERIM PROVISIONS CONCERNING THE MANAGEMENT OF CHINESE-FOREIGN JOINT JOB INTERMEDIARIES

Ministry of Personnel, Ministry of Commerce, State Administration for Industry and Commerce

Order of the Ministry of Personnel, Ministry of Commerce and the State Administration of Industry and Commerce

No.2

The Interim Provisions Concerning the Management of Chinese-foreign Joint Job Intermediaries, which has been examined and approved
by the executive meetings of the Ministry of Personnel, the Ministry of Commerce and the State Administration for Industry and Commerce,
is hereby issued and shall be put into effect as of November 1, 2003.

Zhang Bailin, Minister of the Ministry of Personnel

Lv Fuyuan, Minister of the Ministry of Commerce

Wang Zhongfu, Director of the State Administration for Industry and Commerce

September 4, 2003

Interim Provisions Concerning the Management of Chinese-foreign Joint Job Intermediaries

Chapter I General Provisions

Article 1

The present Provisions are developed in accordance with the Law of the People’s Republic of China on Chinese-foreign Joint Ventures
and other relevant laws and regulations, with an aim to strengthen the management of Chinese-foreign joint job Intermediaries, to
secure the order and to facilitate the healthy development of the employment market.

Article 2

The term “Chinese-foreign Joint Job Intermediaries” in the present Provisions refers to job intermediaries jointly established in
China by any foreign company, enterprise or other economic organization providing job intermediary services and any Chinese company,
enterprise or other economic organization providing job intermediary services.

Article 3

Any foreign company, enterprise or other economic organization providing job intermediary services that wants to set foot in job intermediary
services in China must operate jointly with a Chinese company, enterprise or other economic organization for offering job intermediary
services through a jointly-established intermediaries.

No wholly foreign-owned job intermediaries are permitted to found. Such organizations as foreign enterprises’ resident representative
office in China, or chambers of commerce established in China by any foreign enterprise are permitted to provide job intermediary
services in China.

Article 4

All Chinese-foreign joint job intermediaries shall comply with the laws and regulations of the People’s Republic of China and may
not do anything detrimental to the public interests or national security of the People’s Republic of China.

The legitimate business activities and legal rights and interests of Chinese-foreign joint job intermediary agencies shall be protected
by the law of the People’s Republic of China.

Article 5

The administrative department of personnel, administrative department of Commerce and the administrative department of industry and
commerce of the people’s governments at the level of province, autonomous region or municipality directly under the jurisdiction
of the central government shall, in accordance with the division of functions and roles take charge of the examination and approval,
registration, management and supervision of Chinese-foreign joint job intermediaries in their administrative region.

Chapter II Incorporation and Registration

Article 6

The incorporation of any Chinese-foreign joint job intermediaries shall meet the following requirements:

(1)

The Chinese investor who applies to be incorporated into Chinese-foreign joint job intermediaries must be a job intermediary existed
for not less than three years. On the other hand, the foreign investor must be a foreign company, enterprise or other economic organization
having been offering job intermediary services for not less than three years, and both of the two investors must have good reputations;

(2)

The intermediary to be incorporated shall have a sound organization structure, have personnel who are familiar with the management
of human resources, including five or more full-time employees who are graduates of junior college or above and have a qualification
certificate for job intermediary services;

(3)

The intermediary to be incorporated shall have an appropriate permanent office, adequate funds and office facilities necessary for
the business it applies, with a registered capital of 300,000 US dollars or more, of which the contribution made by the foreign investor
shall be at least 25% and the share of the Chinese investor shall be over 51%;

(4)

The intermediary to be incorporated shall have sound and practical articles of association, management system, working rules and definite
scope of business;

(5)

The intermediary to be incorporated shall have independent civil rights and obligations; and

(6)

Other requirements as prescribed by laws or regulations.

Article 7

Any application for incorporating a Chinese-foreign joint job intermediary shall be submitted to be examined and approved by the administrative
department of personnel of the people’s government of the province, autonomous region or municipality directly under the jurisdiction
of the central government where the agency is to be located, and the related records shall be submitted to the administrative department
of personnel of the State Council.

Article 8

One that wants to apply for the incorporation of any Chinese-foreign joint job intermediary must submit the following materials to
the administrative department of personnel of the local government of the province, autonomous region or municipality directly under
the jurisdiction of the central government:

(1)

a written application and a feasibility study report;

(2)

an agreement and a statute with signature of all investors;

(3)

qualification certificates showing that all of the investors have been providing job intermediary services for not less than three
years;

(4)

the Notice of Advance Approval of Enterprise Name issued by the administrative department of industry and commerce; and

(5)

other materials required by laws, regulations or the administrative department of personnel of provincial government, autonomous region
or municipality directly under the jurisdiction of the Central Government.

If any of the materials stated above is written in any foreign language, the Chinese version of that material shall be attached thereto.

Article 9

The administrative department of personnel of the provincial government, autonomous region or municipality directly under the jurisdiction
of the Central Government shall accomplish the examination and approval procedures within 30 working days from receipt of the application
for the incorporation of any Chinese-foreign joint job intermediary. A License for Job Intermediary Service (hereinafter referred
to as “license”) shall be issued if the application has been approved, and a related report shall be submitted to the administrative
department of personnel of the State Council to be kept in archives; If the application has been rejected, a written notice shall
be sent to the applicant explaining the reasons for such disapproval.

Article 10

According to regulations the applicant shall carry out the approval formalities with the administrative department of Commerce within
30 days from receipt of the license, and shall carry out the registration formalities with the administrative department of industry
and commerce within 30 days from the issuance of the approval certificate.

Chapter III Scope of Business and Management

Article 11

The administrative department of personnel of provincial government, autonomous region or municipality directly under the jurisdiction
of the Central Government shall, in the light of the capital, personnel and management level of the Chinese-foreign joint job intermediary,
approve it to enter one or more of the businesses listed below:

(1)

Collection, classification, storage and publication of information about the employment market and related advisory services;

(2)

Talent recommendation;

(3)

Talent recruitment;

(4)

Career test and appraisal;

(5)

Career training within China; and

(6)

Other relevant businesses ordained by laws and regulations.

Article 12

Any Chinese-foreign joint job intermediaries must comply with the principles of voluntary participation, impartiality and good credit,
as well as professional ethics, conduct business activities within the approved scope of business, and may not commit any act of
unfair competition.

Article 13

Any Chinese-foreign joint job intermediary that recruit talents to be employed outside China shall carry out formalities in accordance
with the relevant ordains of the Chinese government. None of the following persons may be recruited for jobs outside China if he:

(1)

is a technician or administrative person who is charged with key engineering or scientific research projects at the national or provincial
level, and if such employment outside China is not permitted by the entity he belongs to or by the competent administrative department;

(2)

is a civil servant in active service;

(3)

is assigned by the government to support the development of the Western Region of China and whose period of service in the west region
has not expired;

(4)

is involved in any confidential work, whether he is in service or out of service but still within the confidential period;

(5)

is suspected of any illegal commitment and is under investigations; or

(6)

is anyone at a special post who, according the relevant ordains of laws or regulations, is forbidden to flow for the time being, or
anyone whose exit is subject to approval according to the relevant ordains of any law or regulations.

Article 14

The foundation of a branch office, increase or decrease of registered capital, transfer of shares, and change of shareholders of a
Chinese-foreign joint job intermediary shall be subject to the approval of the initial examination and approval authorities and the
modification registration with the administrative department of industry and commerce is required.

Any Chinese-foreign joint job intermediary that changes its name, legal representative or location of its office shall, within 30
days after the registration of amendment with the administrative department of industry and commerce, carry out the relevant formalities
of modification for archival purposes with the initial examination and approval authorities.

Article 15

The administrative department of personnel of the State Council and of the people’s governments at the level of province, autonomous
region, and municipality directly under the jurisdiction of the Central Government shall, according to law, direct, examine and supervise
the daily management and business development of Chinese-foreign joint job intermediaries.

Each year the administrative department of personnel of the people’s governments at the level of province, autonomous region, and
municipality directly under the jurisdiction of the Central Government shall make examination of the licenses of Chinese-foreign
joint job intermediaries. The measures to be taken in such annual examinations shall be developed by the administrative department
of personnel of the people’s government of the province, autonomous region or municipality directly under the jurisdiction of the
Central Government. The result of such annual examination shall be submitted to the administrative department of personnel of the
State Council by the administrative department of personnel of the people’s governments at the level of province, autonomous region,
and municipality directly under the jurisdiction of the Central Government.

Chapter IV Penalty Provisions

Article 16

Any Chinese-foreign joint job intermediary who fails to duly undertake annual examination of the license, provides untrue information
or deceive the employers or people who are doing job hunting by any other means shall be given a warning or be punished with a fine
not exceeding 10,000 Yuan or both which depend on the severity of the activities; If the case is very serious, the amount of the
fine shall not exceed three times of the illegal income but in any event not exceeding 30,000 Yuan. The Penalty shall be enforced
by the administrative department of personnel of the people’s government of the province, autonomous region or municipality directly
under the jurisdiction of the Central Government combined with the administrative department of industry and commerce of the same
level.

Article 17

Anyone who violates the present Provisions and founds any Chinese-foreign joint job intermediary without the approval or anyone who
undertakes business activities beyond the approved and registered scope of business shall be punished in accordance with the Regulations
on the Management of Company Registration, Measures for Dealing with and Banning Licenseless Business Activities and other relevant
provisions. Anyone who commits any act of unfair competition shall be punished in accordance with the Law Against Unfair Competition.

Article 18

Anyone who serves in the government and neglects his duties, commits any embezzlement or malpractice and infringes on any legal rights
and interests of any entity, individual or investor shall be given a disciplinary penalty by the relevant authorities according to
the relevant competence or, if any crime is committed, be subject to criminal liabilities.

Chapter V Supplementary Provisions

Article 19

Any company, enterprise or other economic organization of Hong Kong Special Administrative Region, Macao Special Administrative Region
or Taiwan who establishes job intermediary in the mainland, shall be dealt by referring to the present Provisions.

Article 20

Business activities involving foreign citizens conducted in China by any Chinese-foreign joint job intermediary shall be handled in
accordance with relevant provisions.

Article 21

The power to interpret the present Provisions shall remain with the Ministry of Personnel, Ministry of Commerce and the State Administration
of Industry and Commerce.

Article 22

The present Provisions shall come into force as of November 1, 2003.

Ministry of Personnel, Ministry of Commerce, State Administration for Industry and Commerce
2003-09-04

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON DELEGATING THE POWER TO APPROVE ENTERPRISES OF CATEGORY A FOR ENJOYING EXPORT TAX REFUND TO LOWER LEVELS

20040601

State Administration of Taxation

Circular of the State Administration of Taxation on Delegating the Power to Approve Enterprises of Category A for Enjoying Export
Tax Refund to Lower Levels

GuoShuiFa [2003] No. 117

October 11th, 2003

The administration of State taxation of all provinces, autonomous regions, municipalities directly under the Central Government, and
the cities directly under State planning, as well as all entities under the administration of State taxation:

With a view to streamlining the measures for the classified administration of the enterprises enjoying tax refund or exemption for
exported goods, the State Administration of Taxation has, after deliberation with the Ministry of Commerce, made decisions to delegate
the power to approve export enterprises of Category A to lower levels in light of the spirits of the Opinions on Doing Well the Follow-up
Work for the Projects Whose Examination and Approval Has Been Adjusted as issued by the Leading Group of the State Council for the
Reform of Administrative Approval System (GuoShenGaiFa [2003] No. 1). We hereby make the following notice on relevant matters:

The power to approve export enterprises of Category A as prescribed in the Circular of the General State Administration of Taxation
concerning Carrying Out the Classified Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa
[1998] No. 95) and the Supplementary Circular of the General State Administration of Taxation concerning Carrying Out the Classified
Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [2001] No. 83) shall be delegated without
exception to the administration of State taxes of all provinces, autonomous regions, municipalities directly under the State Council,
and the cities directly under the State planning, and is not subject to reporting to the State Administration of Taxation.

II.

The administration of state taxes of all provinces, autonomous regions, municipalities directly under the Central Governments, and
the cities directly under the State planning shall be responsible for the examination and approval of the export enterprises of Category
A and the administration on the tax refund or exemption of exported goods strictly in conformity with the requirements and standards
for the Category A export enterprises as prescribed in the Circular of the General State Administration of Taxation concerning Carrying
Out the Classified Management According to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [1998] No.95) and
the Supplementary Circular of the General State Administration of Taxation concerning Carrying Out the Classified Management According
to Enterprises on Tax Refund or Exemption for Exported Goods (GuoShuiFa [2001] No. 83). The name list of the Category A export enterprises
determined after approval shall be submitted to and put on archival files at the State Administration of Taxation.

State Administration of Taxation
2003-10-11

DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR THE ADMINISTRATION OF AUTO FINANCING COMPANIES

China Banking Regulatory Commission

Notice of China Banking Regulatory Commission on Printing and Issuing Detailed Rules for the Implementation of the Measures for the
Administration of Auto Financing Companies

Yin Jian Fa [2003] No. 23

Detailed Rules for the Implementation of the Measures for the Administration of Auto Financing Companies adopted at 8th president
meeting of China Banking Regulatory Commission on November 3rd, 2003 are hereby printed and issued, please carry out graveness.

China Banking Regulatory Commission

November 12th, 2003

Detailed Rules for the Implementation of the Measures for the Administration of Auto Financing Companies

Chapter I General Provisions

Article 1

The present Rules are formulated in accordance with the Measures for the Administration of Auto Financing Companies (hereinafter referred
to as “Measures”) and other relevant administrative regulations.

Article 2

The China Banking Regulatory Commission (hereinafter referred to as “CBRC”) and its agencies shall make supervision over and administration
of the auto financing companies according to the Measures and the present Rules.

Chapter II Establishment

Article 3

The application for establishing an auto financing company shall include the application for preparing the establishment and the application
for starting the operation.

The banking regulatory bureau (CBRC’s dispatched agency at the provincial level) at the place where an auto financing company is to
be established shall be the examining and verifying authority for the application for establishing such auto financing company. CBRC
shall be the examining and approving authority for applications for the establishments of all auto financing companies.

Article 4

The banking regulatory bureau shall implement a system of signing the receipt of the application documents for preparing the establishment
and for starting the operation of an auto financing company.

Article 5

The applicant meeting the requirements of Article 5 of the Measures shall submit to the banking regulatory bureau an application
form for preparing the establishment of an auto financing company and the materials required in Article 9 of the Measures.

Article 6

The banking regulatory bureau shall make examination on whether all the required documents have been submitted within five working
days after signing the receipt of the application documents for preparing the establishment of an auto financing company. In case
the application documents submitted are not complete or not in the specified forms, the banking regulatory bureau shall inform the
applicant all by one written notice, and require the applicant to further submit the materials that need to be added. Where the application
documents are complete and all in specified forms, the banking regulatory bureau shall accept and handle the application and give
the applicant a written notice concerning that.

In case the banking regulatory bureau proclaims no objections within five working days, the application shall be regarded as accepted
automatically.

Article 7

The banking regulatory bureau shall examine and verify the application documents for preparing the establishment of an auto financing
company, give its opinion on whether or not to approve the application and submit such opinions to CBRC.

CBRC shall complete the examination and verification within 20 days after accepting the application documents.

CBRC shall be responsible for the examination and approval of the application for preparing the establishment, and shall make a decision
in writing on whether or not to approve the application within six months after the banking regulatory bureau’s acceptance of the
application for preparing the establishment.

Article 8

In the event of disapproval, CBRC shall give the applicant a written notice stating the ground for such disapproval. The applicant
may not make further application for the same purpose within six months from the date on which such disapproval is given.

Article 9

Any applicant having obtained the permit for preparing the establishment wishes to extend the period of preparations shall submit
to the banking regulatory bureau an application form for extension and a report on application for extension, explaining the reasons
for the extension. After examined and verified by the banking regulatory bureau, the application for extension shall be submitted
to CBRC for verification and approval.

Such extension shall be limited to one time for each case and the period of extension shall not exceed three months.

Article 10

The applicant shall, after the preparations for establishment have been completed, submit to the banking regulatory bureau an application
form for starting the operation and the materials required in Article 12 of the Measures.

Article 11

The banking regulatory bureau shall be responsible for the acceptance, and examination and verification of the application documents
for starting the operation. The procedures for such acceptance, examination and verification shall be the same as those specified
in Articles 6 and 7 of these detailed Rules.

CBRC shall make a decision in written form on whether or not to approve the application within three months after the banking regulatory
bureau’s acceptance of the application for starting the operation.

Article 12

CBRC shall be responsible for the verification and approval of the applications for starting the operation and the business scopes
of auto financing companies. In the event of a solely foreign-owned auto financing company or a Chinese-foreign joint auto financing
company, the Financial License shall be issued by CBRC. In the event of a Chinese-investment auto financing company, the Financial
License shall be issued by the banking regulatory bureau.

The Financial Licenses of auto financing companies shall be governed by the Measures for the Control of Financial Licenses and other
relevant provisions.

Article 13

CBRC is authorized by the Ministry of Commerce of the People’s Republic of China to issue the Approval Certificate of the People’s
Republic of China for an Enterprise with Foreign Investment to the solely foreign-owned and Chinese-foreign joint auto financing
companies who have been approved to start operation. After receiving the approval document for starting the operation, the solely
foreign-owned or Chinese-foreign joint auto financing company shall go through the relevant formalities with CBRC and make enterprise
registration by the approval document issued by CBRC, the Financial License and the aforesaid approval certificate. CBRC shall, on
the same day as issuing the approval certificate, submit to the Ministry of Commerce the approval certificate stub.

Article 14

The articles of association of an auto financing company shall at least cover the company’s name, place of business, type of ownership,
registered capital, scope of business, form of association, operation and management, and termination and liquidation.

Article 15

With regard to each auto financing company, there must be at least 60% persons of its personnel who have the experience in financial
field or are graduates of college or secondary specialized school majoring in finance. The application documents for starting the
operation of an auto financing company shall cover the information on the percentage of persons who have the experience in financial
field or are graduates of college or secondary specialized school majoring in finance.

Article 16

All the application documents either for preparing the establishment or for starting the operation shall be submitted in triplicate
and in Chinese.

Chapter III Qualifications for the Senior Administrative Personnel

Article 17

The term “senior administrative personnel of an auto financing company” means the legal representative of the company and the persons
who have decision-making power with regard to the operation and management of the company or who play a major role in risk control
of the company, that is, the directors, supervisors, general manager, deputy general manager, chief financial officer, manager of
the department of internal audit or inspection, and the administrative persons who are in other post_titles but have the same functions
and duties as mentioned above.

Article 18

The senior administrative personnel of an auto financing company must meet the following basic requirements:

(1)

Being well acquainted with and complying with the relevant economic and financial laws and regulations of the state; and

(2)

Having the professional knowledge, work experience and organizational and administrative abilities necessary for his post.

Article 19

Anyone who is under any of the following circumstances may not be the senior administrative personnel of any auto financing company:

(1)

Having a record of crime or having been severely punished for his illegal act;

(2)

Having caused grievous losses to the financial institution or other enterprise or company where he worked due to his serous mistakes
in his work in the past five years;

(3)

Bearing the major responsibility or the direct leader’s responsibility for any major improper act, revocation of the financial license
or business license or bankruptcy of the financial institution or other enterprise or company where he worked, and such event occurred
in the past five years; or

(4)

Other circumstances prescribed in laws and regulations under which one person may not be the senior administrative personnel of a
financial institution.

Article 20

The qualifications and appointments of the chairmen of board of directors, vice chairmen of board of directors, executive directors,
directors, general managers, deputy general managers and chief financial officers of auto financing companies shall be subject to
the examination and approval of CBRC and its agency. And the qualifications and appointments of other senior administrative personnel
of auto financing companies shall be subject to submission to CBRC and its agency for archival purposes.

Article 21

The senior administrative personnel of auto financing companies to whom the examination and approval system applies shall meet the
following conditions:

(1)

A person to be the chairman of board of directors, executive director or general manager must be a graduate of college or above, and
have experience in financial field of at least five years or in the management of auto production or sales of at least ten years.
In case he is not a graduate of college or above, he shall have experience in financial field of at least eight years or in the management
of auto production or sales of at least 15 years;

(2)

A person to be the vice chairman of board of directors or deputy general manager must be a graduate of college or above, and have
experience in financial field of at least three years or in the management of auto production or sales of at least six years. In
case he is not a graduate of college or above, he shall have experience in financial field of at least six years or in the management
of auto production or sales of at least 11 years;

(3)

A person to be the chief financial officer must be a graduate of college or above, and have experience of financial, accounting or
auditing work of at least six years. In case he is not a graduate of college or above, he shall have experience of financial, accounting
or auditing work of at least 14 years; and

(4)

A person to be a director must be a graduate of junior college or above, and have experience in enterprise operation and management
of at least six years. In case he is not a graduate of junior college or above, he shall have experience in enterprise operation
and management of at least ten years.

Article 22

With the appointment of senior administrative personnel to whom the examination and approval system is applied, the auto financing
company shall submit the following application documents (in triplicate) to the local agency of CBRC:

(1)

The qualifications form for examination and approval;

(2)

The application for verifying the qualifications of the person to be appointed;

(3)

The comprehensive appraisal on the conduct, professional ability, administrative ability and achievements of the person to be appointed
by the board of directors and board of supervisors of the company to make the appointment and by the present employer of the person
to be appointed;

(4)

A copy of the ID card of the person to be appointed;

(5)

The copies of the academic credentials and the certificate of professional skill, as recognized by the state, of the person to be
appointed; and

(6)

Other materials as may be required by CBRC or its agency.

Article 23

In the event of submission of information about senior administrative personnel of an auto financing company for CBRC’s and its agency’s
examination and approval, CBRC and its agency shall, within 90 days from the receipt of all the required application documents, give
a reply on whether or not to approve. In the event of disapproval, a written notice shall be given to the applicant explaining the
reasons for this disapproval.

Article 24

CBRC and its agency may hold examinations or tests for or talks with a person who is to be appointed to a senior administrative post
and whose qualifications and appointment are subject to the examination and approval of CBRC and its agency.

Article 25

With regard to the appointment of senior administrative personnel to whom the system of submission for archival purposes is applied,
the auto financing company shall submit the following materials (in triplicate) to the local agency of CBRC:

(1)

The qualifications form for archival purposes;

(2)

The copy of the ID card of the person to be appointed;

(3)

The copies of the academic credentials and the certificate of professional skill, as recognized by the state, of the person to be
appointed; and

(4)

Other materials as may be required by CBRC or its agency.

Article 26

In the event of submission of information about senior administrative personnel of an auto financing company for archival purposes,
in case the local agency of CBRC does not make any objection in written form within 30 days after the receipt of all the required
information, it shall be regarded as recognized.

Article 27

Without the approval of CBRC and its agency, the senior administrative personnel of an auto financing company, such as the chairman
of board of directors, vice chairman of board of directors, executive director, general manager, deputy general manager, chief financial
officer or manager of the department of internal audit or inspection, may not concurrently hold any post in any Party or government
organization or any post of senior management in any other company.

Article 28

The chairman of board of directors of an auto financing company may not concurrently hold the post of general manager. The director
of an auto financing company may not concurrently hold any post of senior management in any other company that is in a competitive
relation with the auto financing company.

Article 29

Where the chairman of board of directors or the general manager of an auto financing company fails to perform his duties for one month
or more in succession for any reason, other senior administrative personnel shall be appointed as the acting chairman of board of
directors or general manager, provided that such appointment shall be subject to the submission to the local agency of CBRC for archival
purposes in advance. Where the chairman of board of directors or the general manager fails to perform his duties for three months
or more in succession, he shall be replaced.

Article 30

When senior administrative personnel of an auto financing company is to leave his post, the company shall engage an external auditor
as approved by CBRC and its agency to make an audit on post-leaving.

Article 31

An audit report on post-leaving shall at least cover the following:

(1)

The situation of the business under the person’s charge;

(2)

Whether the business under the person’s charge was conducted in accordance with laws and regulations;

(3)

The situation of the internal control and risk management with regard to the business under the person’s charge;

(4)

The great economic or criminal cases occurred in the person’s scope of official duty and the person’s responsibility for such cases;
and

(5)

The conclusion of the audit.

Article 32

CBRC and its agencies shall establish and keep the archives of senior administrative personnel of auto financing companies. Such archives
shall at least cover the followings:

(1)

The application documents for appointments;

(2)

The documents and materials examined and verified by CBRC and its agencies;

(3)

The documents of CBRC and its agencies on approving the appointments;

(4)

The decisions made by CBRC and its agencies on sanctions on the senior administrative personnel or the documents of CBRC and its agencies
on disqualifying the senior administrative personnel;

(5)

The decisions made by the auto financing companies on sanctions on the senior administrative personnel;

(6)

The audit reports on post-leaving; and

(7)

Other important materials.

Article 33

Where any of senior administrative personnel bears personal responsibility or bear the direct leader’s responsibility for any of the
following circumstances, CBRC and its agency shall, according to the circumstances and the consequences, disqualify the person, for
a fixed period or for his whole life, from being such senior administrative personnel:

(1)

The person is subject to any criminal responsibility;

(2)

The person refuses, interferes with, obstructs or seriously affects the legal supervision and administration by CBRC or its agency
on the auto financing company;

(3)

The poor internal control system or ineffective management has caused heavy losses of assets or resulted in any great financial crime;

(4)

The company has conducted extremely improper operations. It has been in poor management and administration for a long period of time
and suffered heavy losses or it has been taken over, dissolved, enforced to merge or declared bankrupt;

(5)

In the event of any great financial crime, the company fails to report the case without delay, fails to take proper measures, or fails
to cooperate with the competent authorities in the latter’s investigation or handling of the case, or interferes with or obstructs
the investigation and handling of the case;

(6)

The senior administrative personnel is found, after the appointment, to have committed any illegal or improper act or have other circumstances
that preclude his being a senior administrative personnel; and

(7)

Other circumstances as specified by CBRC or its agency.

Article 34

CBRC and its agencies may circulate a notice on the disqualification of senior administrative personnel of an auto financing company.

Chapter IV Risk Control, Supervision and Management

Article 35

Any auto financing company shall set up a sound risk management system aiming at risk control, which includes the following:

(1)

Setting up an organizational structure for good management of the company, with the duties and responsibilities reasonably and clearly
divided and the accounting relations clearly specified, and setting up the scientific and highly efficient decision-making and encouraging
and restricting mechanisms; and

(2)

Establishing and improving the internal control system by referring to the Guidance for Internal Control of Commercial Banks and under
the principles of generality, discretion, effectiveness and independence, and submitting that to the local agency of CBRC for archival
purposes.

Article 36

Any auto financing company shall establish a board of directors, other than in the event of a solely foreign-owned auto financing
company which has only a single director, and which shall engage an external independent director.

Article 37

Any auto financing company shall have its assets divided into five classes and, by referring to the Guiding Principles for Classified
Loan Risks, formulate rules for operating different classes of asset risks and implement them after submitting them to the local
agency of CBRC for archival purposes. It shall, in accordance with the Guidance for the Provision of Reverses for Loan Losses, set
up a cautious system of reserves for loan losses, and make timely and adequate provision of reserves for losses of assets.

Article 38

The formula for the calculation of the capital adequacy ratio of an auto financing company shall be: capital/risk-weighed assets.

Article 39

The capital of an auto financing company consists of the core capital and the subordinated capital. The core capital consists of paid-up
capital, capital reserves, surplus reserves and undivided profits. The subordinated capital consists of revalued reserves and general
reserves.

The core capital of an auto financing company shall be not less than 50% of all its capital.

Article 40

The calculation of the risk-weighed assets and different asset risk weights of an auto financing company are as follows:

Risk-weighed assets=claims against commercial banks0%+claims guaranteed by a commercial bank0%+claims with a guarantee of other
forms0%+assets in other forms00%+balance of guarantee business00%

A guarantee of other forms means a guarantee other than those provided by a commercial bank; assets in other forms do not include
cash.

At the calculation of the risk assets of each loan, the special-purpose reserve shall be first deducted from the book value of the
loan, and the devaluation reserves for other assets shall also be deducted from the book value of the relevant asset account.

Article 41

The ratio between the balance of credit provided by an auto financing company to a single borrower and the company’s registered capital
shall not exceed 15%.

The credit balance comprises stated accounts and unstated accounts.

Article 42

The ratio between the balance of credits provided by an auto financing company to the biggest ten clients shall not exceed 50% of
its registered capital.

Article 43

No auto financing company may give any unsecured loan to any of its affiliated persons, nor may it extend any credit to any of its
affiliated persons on terms more favorable than those offered to other borrowers with the same kind of credit.

Article 44

The balance of the credit extended by an auto financing company to any single director of the company and the affiliated persons of
the director shall not exceed 100% of the investment by the director to the company.

Article 45

The credit balance under Articles 41, 42 and 44 of the present Rules refers to the balance after deducting the cash and money equivalent
given in pledge by the borrower.

Article 46

The guarantee balance of an auto financing company shall not be more than 200% of its registered capital.

Article 47

The ratio between the fixed assets for its own use and the registered capital of an auto financing company shall not be more than
40%.

Article 48

The ratio between the current assets and current liabilities of an auto financing company shall be not lower than 100%.

The current assets cover cash, loans matured in a month, accounts receivable in a month and other assets that may be realized in a
month, provided that the amounts that are anticipated as not receivable shall be deducted from the aforesaid assets. The current
liabilities include deposits matured in a month, loans repayable in a month to financial institutions and other liabilities due in
a month.

Article 49

The loans for auto exhibition halls shall only be used for the construction of places required for the exhibition of finished motors.

Article 50

The interest rate of loans obtained by an auto financing company from other financial institutions shall apply the banker’s rates
mutatis mutandis. The interest rate of auto loans granted by an auto financing company may fluctuate by ?0-30% based on the legal
rate of interest as quoted by the People’s Bank.

Article 51

All the auto financing companies shall, in accordance with the provisions made by BCRC and its agency concerning the relevant supervision
and control, regularly submit to the local agency of CBRC their financial and accounting statements and reports on the implementation
of supervision and control indexes signed by its legal representative, and other materials as may be required by CBRC and its agency.

The legal representative of an auto financing company is held finally responsible for the authenticity of the aforesaid materials.

Article 52

CBRC and its agencies shall, by on-the-spot inspection and off-the-spot supervision and control, conduct overall check and appraisement
on each auto financing company’s implementation of the risk management system in which the legal person’s administrative structure
and internal control system serve as the key elements, of the capital adequacy ratio and other risk control indexes and of the systems
of classification of assets risks and asset loss reserves. CBRC and its agencies shall be enpost_titled to order any auto financing company
failing to meet the relevant requirements to make reform and consolidation, or suspend part or all of its business for reorganization.

CBRC and its agencies may designate an intermediary agency with proper credentials to make spot inspection on auto financing companies.

Chapter V Supplementary Provisions

Article 53

The term “auto financing business” means the business specified in Article 18 of the Measures.

Article 54

The term “the distributor” mentioned in Article 2 of the Measures means distributors who specially engage in the sales of motors
and does not include auto manufacturers or other sellers of motors.

Article 55

The enterprise legal person mentioned in Article 5 (1) of the Measures does not include any bank either in or out of China.

Article 56

The term “the buyer and seller of motors in China” mentioned in Article 2 of the Measures mean the buyers and sellers of motors in
China’s mainland and do not include those in Hong Kong, Macao or Taiwan.

Article 57

In the present Rules, the term “affiliated person” includes affiliated legal persons and affiliated natural persons.

The affiliated legal person of an enterprise means:

(1)

A legal person who directly or indirectly controls the enterprise or who is, together with the enterprise, under the common control
of any third person; or

(2)

An enterprise under the direct or indirect control of an affiliated natural person.

The term “affiliated natural person of an enterprise” means the senior administrative personnel of the enterprise and the close relatives
thereof. The affiliated natural persons of an auto financing company include in addition the personnel engaging in the credit business
and the close relatives thereof.

Article 58

The present Rules shall be implemented as of the promulgation. The responsibility to interpret the present Rules shall remain with
CBRC.

China Banking Regulatory Commission
2003-11-12

SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE TAX REFUND RATE FOR EXPORTED GOODS

Ministry of Finance, State Administration of Taxation

Supplementary Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported
Goods

Caishui [2003] No. 238

December 2, 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 Xinjiang Production and Construction
Army Corps:

The “Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Tax Refund Rate for Exported Goods”
(Caishui [2003] No. 222) has prescribed the tax refund rates applicable to exported goods since January 1, 2004. Our supplementary
notice concerning other relevant policies on tax refund for export is hereby giver as follows:

Where the goods are exported by small-scale taxpayers on their own or by means of authorization, it shall continue to implement the
tax exemption policies, and their tax amount on purchase items shall neither be deducted nor be refunded. If taxes are permitted
to be refunded to export enterprises for their export of goods purchased from small-scale taxpayers, it shall apply a tax refund
rate of 5% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to be 5%; and it shall
apply to a tax refund rate of 6% to any goods whose tax refund rate for export is prescribed by Document Caishui [2003] No. 222 to
be higher than 5%.

II.

Where products are exported within the “Catalogue on Export of Hi-tech Products” (2003 Edition), it shall uniformly comply with the
tax refund rate prescribed in Document Caishui [2003] No. 222.

III.

Computer software in export (Customs Export Code: 9803) shall be exempted from taxes, and their tax amount on purchase items shall
neither be deducted nor be refunded.

IV.

For the Chinese domestically produced articles and domestic labor services purchased by foreign embassies (consulates) to China and
their diplomats, the domestically produced equipment purchased by foreign-funded enterprises and qualified for tax-refund conditions,
as well as the mechanical and electronic products for which the domestic enterprise won the bid and for which international bid invitation
was held by using loans of foreign governments and international financial organizations prescribed in Article 9 of the “Notice
of the State Administration of Taxation on Some Issues Concerning Tax Refund for Export” (GuoshuiFa [2000] No. 165), as well as the
ocean engineering structures sold by the production enterprises prescribed in the “Notice of the Ministry of Finance and the State
Administrative Institution of Taxation on Applying VAT Refund to Ocean Engineering Structures” (Caishui [2003] No. 46) to domestic
maritime petroleum and natural gas exploitation enterprises, taxes shall still be refunded, deducted or exempted according to the
original policies.

The domestically produced equipment purchased by foreign-funded enterprises, with the taxes on which permitted to be refunded, covers
a scope of domestically produced equipment purchased within China, which conforms to the investment projects in the catalogue of
encouraged foreign investment industries in the “Catalogue for the Guidance of Foreign Investment Industries”, that is, Order No.
21 jointly promulgated by the former State Planning Commission, the former State Economic and Trade Commission and the former Ministry
of Foreign Trade and Economic Cooperation.

The tax refund rate that is applicable to the “exemption or deduction” policies for the steel “specially used for processing export”
sold by the named steel enterprises prescribed in the “Notice of the State Administration of Taxation, the State Economic and Trade
Commission, the Ministry of Finance, the General Administration of Customs, and the State Administration of Foreign Exchange on Printing
and Distributing the Detailed Rules for the Implementation of the Measures for Promoting Steel Production in Place of Steel Import”
(GuoshuiFa [1999] No. 68) to processing trade enterprises shall be notified separately.

The domestically sold or purchased goods other than those prescribed in Article 4 of the present Notice shall be deemed as the goods
whose taxes are permitted to be refunded or exempted upon export. The “exemption, deduction or refund” of taxes shall be handled
or the amount of “exempted or deducted” taxes shall be computed uniformly according to the tax refund rate prescribed in Document
CaishuiFa [2003] No. 222. For such goods, the “tax amount not permitted to be exempted or deducted” shall be calculated and be converted
into the costs.

The tax amount not permitted to be exempted or deducted = the sales amount named on common invoicestax levying rate of the sold
goods tax refund rate of the sold goods)

VI.

The present Notice shall enter into force as of January 1, 2004. The export date indicated by the customs on the “Customs Declaration
List for Exported Goods (the sheet of tax refund for export)” shall be deemed as the time criterion for Articles 1 through 3 of the
present Notice; while the time of issuance by the seller of common invoices shall be deemed as the time criterion for Articles 4
and 5.

Ministry of Finance, State Administration of Taxation
2003-12-02

BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Order of the Chairman of the People’s Republic of China

No.11

The Banking Supervision Law of the People’s Republic of China was adopted at the 6th session of the Standing Committee of the 10th
National People’s Congress of the People’s Republic of China on December 27, 2003. It is hereby promulgated and shall be implemented
as of February 1, 2004.

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

December 27, 2003

Banking Supervision Law of the People’s Republic of China ContentChapter I. General Provisions

Chapter II. Supervision Institutions

Chapter III. Supervision Functions

Chapter IV. Supervision Measures

Chapter V. Legal Liabilities

Chapter VI. Supplementary Provisions

Chapter I. General Provisions

Article 1

The present Law is formulated to strengthen the supervision over the banking industry, regulate the activities of supervision, prevent
and eliminate banking risks, protect the legitimate rights and interests of the depositors and other clients and promote the sound
development of the banking industry.

Article 2

The banking supervision institution of the State Council shall be responsible for the supervision over the nationwide banking financial
institutions and operations.

The term “banking financial institutions” as mentioned in the present Law refers to the commercial banks, urban credit cooperatives,
rural credit cooperatives and other financial institutions and policy banks established within China and engaged in taking in deposits
of the general public.

The present Law shall be applicable to the supervision over the financial assets management companies, trust investment companies,
financial companies and the financial lease companies established within the People’s Republic of China and other financial institutions
established within China upon approval of the banking supervision institution of the State Council.

The banking supervision institution of the State Council shall, in accordance with the relevant provisions of the present Law, conduct
supervision over the financial institutions established abroad upon its approval and the overseas operations of the financial institutions
as mentioned in the preceding two paragraphs.

Article 3

The banking supervision shall be targeted for promoting the lawful, steady, and sound operations of the banking industry, and maintaining
the confidence of the general public in the banking.

The banking supervision shall protect the fair competitions of banking and improve the competitive ability of the banking industry.

Article 4

When conducting banking supervision, the banking supervision institutions shall comply with the principle of law compliance, openness,
impartiality and efficiency.

Article 5

The banking supervision institutions and their functionaries engaged in banking supervision shall perform their duties in accordance
with the law, shall be protected by the law. None of the local governments, government departments of all levels, the social institutions
and individuals may interfere with them.

Article 6

The banking supervision institution of the State Council shall establish a supervision information sharing system with the People’s
Bank of China and the other financial supervision institutions of the State Council.

Article 7

The banking supervision institution of the State Council may also establish cooperation systems with the banking supervision institutions
of other countries or regions for the purpose of conducting transnational supervision.

Chapter II. Supervision Institutions

Article 8

The banking supervision institution of the State Council may set up dispatched institutions in light of the needs for exercising their
duties. The banking supervision institution of the State Council shall practice unified leadership and management to the institutions
dispatched by it.

The institutions dispatched by the banking supervision institution of the State Council shall, within the powers granted by the banking
supervision institution of the State Council, perform their supervision duties.

Article 9

Among the functionaries of the banking supervision institutions, those engaged in supervision shall have the professional knowledge
and experiences adapting to their respective post.

Article 10

The functionaries of the banking supervision institutions shall devote to their duties, handle matters in pursuance of the law, be
impartial and clean, shall not seek improper interests by taking advantages of their posts, and shall not hold concurrent positions
in other financial institutions or other enterprises.

Article 11

The functionaries of banking supervision institutions shall keep the secrets of the state in accordance with the law, and shall be
obligated to keep the secrets of the banking financial institutions and the parties concerned under their supervision.

Where the banking supervision institution of the State Council exchanges supervision information with the banking supervision institutions
of other countries or regions, it shall make an arrangement to keep the information secret.

Article 12

The banking supervision institution of the State Council shall disclose the supervision procedures, shall establish supervision responsibility
system and internal supervision system.

Article 13

When the banking supervision institutions deal with the risks of a banking financial institution, investigate into and punish relevant
illegal financial offences, or carry out other supervision activities, the local governments, the departments of all levels shall
support and cooperate with them.

Article 14

The auditing, supervision and other organs of the State Council shall conduct supervision over the activities of the banking supervision
institution of the State Council in pursuance of the law.

Chapter III. Supervision Duties

Article 15

In accordance with the law and the administrative regulations, the banking supervision institution of the State Council shall formulate
and issue regulations and rules governing the supervision over the financial banking institutions and their operations.

Article 16

In pursuance of the requirements and procedures as prescribed in the laws and the administrative regulations, the banking supervision
institution of the State Council shall be responsible for the examination and approval of the establishment, modifications, termination
and operation scope of the banking financial institutions.

Article 17

With regard to an applicant for establishing a financial institution or a banking financial institution that modifies the shareholder
whose total capital contributions or total shares reach or exceed the prescribed proportion, the banking supervision institution
of the State Council shall examine the shareholder’s sources of funds, financial status, capital adequacy and credit standing.

Article 18

The operations within the operation scope of a banking financial institution shall be subject to the examination and approval of or
be registered by the banking supervision institution of the State Council. The specific operations shall be prescribed and announced
by the banking supervision institution of the State Council in accordance with the laws and administrative regulations.

Article 19

Without approval of the banking supervision institution of the State Council, no entity or individual may establish any banking financial
institution or carry on operations as a banking financial institution.

Article 20

The banking supervision institution of the State Council shall adopt qualification management for the appointment of directors and
senior managerial personnel of the banking financial institutions and it shall formulate specific measures.

Article 21

The rules for prudent operations governing the banking financial institutions may be provided for in the laws and administrative regulations,
and may also be formulated by the banking supervision institution of the State Council in accordance with the laws and administrative
regulations.

The term “rules for prudent operations” as mentioned in the preceding paragraph covers the risk management, internal control, capital
adequacy ratio, quality of capital, loss reserve fund, risk concentration, related transactions and liquidity of assets, etc.

All banking financial institutions shall strictly abide by the rules for prudent operations.

Article 22

The banking supervision institution of the State Council shall, within the prescribed time limit, make a written decision about approving
or disapproving any of the following items; if it decides to disapprove, it shall give the reasons:

(1)

The establishment of a banking financial institution, within 6 months from the day when the application documents are received;

(2)

The modification or termination, the operation scope and the operations added to the operation scope of a banking financial institution,
within 3 months from the day when the application documents are received;

(3)

The examination of the qualifications of the directors and senior managerial personnel, within 30 days from the day when the application
documents are received.

Article 23

The banking supervision institutions shall conduct non-on-site supervision over the operations and risk status of the banking financial
institutions, shall establish banking financial institution supervision information system, and shall analyze and evaluate the risk
status of banking financial institutions.

Article 24

A banking supervision institution shall conduct on-site inspection on the operations and risk status of the banking financial institutions.

The banking supervision institution of the State Council shall formulate on-site inspection procedures, and regulate on-site inspections.

Article 25

The banking supervision institution of the State Council shall adopt consolidated financial statements in conducting supervision over
the banking financial institutions.

Article 26

With regard to the advice given by the People’s Bank of China about the inspection on banking financial institutions, the banking
supervision institution of the State Council shall make a reply within 30 days from the day it receives the advice.

Article 27

The banking supervision institution of the State Council shall establish a banking financial institution supervision grade evaluation
system and a risk pre-warning system. It shall, in light of the grade and the risk situation of a banking financial institution,
determine the frequency and scope of on-site inspections, and other necessary measures.

Article 28

The banking supervision institution of the State Council shall establish a post responsibility system for the discovery and reporting
of banking emergencies.

Where a banking supervision institution discovers an emergency may result in a systematic banking risk or may seriously affect the
stability of the society, it shall immediately report to the person-in-charge of the banking supervision institution of the State
Council. If the person-in-charge considers it necessary to report to the State Council, it shall report to the State Council at once,
and shall inform the People’s Bank of China, the finance department of the State Council and other relevant departments.

Article 29

The banking supervision institution shall, jointly with the People’s Bank of China, the finance department of the State Council and
other relevant departments, shall establish a banking emergency handling system, formulate a banking emergency disposal plan and
clearly specify the handing institutions, the personnel and their duties, the measures and procedures so as to timely and effectively
handle any banking emergencies.

Article 30

The banking supervision institution of the State Council shall be responsible for the making of unified statistics and statements
of the nationwide banking financial institutions, and shall announce them in accordance with relevant regulations of the State.

Article 31

The banking supervision institution of the State Council shall guide and supervise the activities of the banking self-disciplinary
organizations.

The constitution of any banking self-disciplinary organization shall be submitted to the banking supervision institution of the State
Council for archival purposes.

Article 32

The banking supervision institution of the State Council may carry out activities of international communication and cooperation related
to banking supervision.

Chapter IV. Supervision Measures

Article 33

A banking supervision institution shall, in light of the needs to perform its duties, have the power to demand the banking financial
institutions to submit their asset-liability statements, profit statements, and other financial and accounting statements, operation
management materials and the audit reports issued by certified public accountants.

Article 34

In accordance with the requirement of prudent supervision, a banking supervision institution shall taking following measures for conducting
on-site inspection:

(1)

To conduct inspection by entering into a banking financial institution;

(2)

To question the functionaries of the banking financial institution, to demand them to give explanations about the relevant to-be-inspected
items;

(3)

To examine and copy the documents and materials relating to the to-be-inspected items, to seal up the documents and materials that
may be moved, hidden or destroyed;

(4)

To examine the banking financial institution’s computer system for operation data management.

An on-site inspection shall be subject to the approval of the person-in-charge of the banking supervision institution. In an on-site
inspection, the number of inspectors shall not be less than 2, and the inspectors shall show their legitimate certificates and the
inspection notice. Under the circumstance of insufficient number of inspectors or a failure to show the legitimate certificates and
inspection notice, the banking financial institution shall be enpost_titled to refuse the inspection.

Article 35

In light of the needs to perform the duties, a banking supervision institution may talk with the directors and the senior managerial
personnel of a banking financial institution, may demand them to give explanations about significant matters concerning the operations
and risk control of this banking financial institution.

Article 36

The banking supervision institutions shall order the banking supervision institutions to faithfully disclose the information about
the financial and accounting statements, the status of risk management, the replacement of the directors and senior managerial personnel
and other significant matters.

Article 37

Where a banking financial institution is in violation of the prudent operation rules, the banking supervision institution of the State
Council or its dispatched institution of the province level shall order it to get right within a time limit. If the banking financial
institution fails to do so, or if its offences are so serious that will endanger the steady and sound operations of the banking financial
institution or impair the legitimate rights and interests of the depositors or other clients, the following measures may be taken
on the basis of different circumstances upon approval of the person-in-charge of the banking supervision institution of the State
Council:

(1)

To order it to suspend some of its operations, to stop approving new operations;

(2)

To restrict the distribution of bonus and other incomes;

(3)

To restrict the alienation of assets;

(4)

To order the controlling shareholder to transfer its stock right or to restrict the powers of relevant shareholders;

(5)

To order it to replace the directors and senior managerial personnel or restrict their powers;

(6)

To stop approving the establishment of any new branches.

After a banking financial institution gets right, it shall submit a report to the banking supervision institution of the State Council
or to its dispatched institution on the province level, which shall conduct a re-inspection. If the banking financial institution
is found to meet the prudent operation rules upon re-inspection, the relevant measures as mentioned in the preceding paragraph shall
be lifted within 3 days as of the completion of the re-inspection.

Article 38

Where a banking financial institution has already had or may have a credit crisis, which seriously impairs the legitimate rights and
interests of the depositors and other clients, the banking supervision institution of the State Council may take over the banking
financial institution or urge it to restructure. The taking over and restructure shall be implemented in accordance with the relevant
laws and the regulations of the State Council.

Article 39

Where a banking financial institution conducts illegal operations or faulty operations and management, and it will seriously impair
the financial order and the interests of the general public unless cancelled, the banking supervision institution of the State Council
shall be empowered to cancel it.

Article 40

Where a banking financial institution is taken over, restructured or canceled, the banking supervision institution of the State Council
shall be empowered to demand the directors, the senior managerial personnel and other functionaries to perform their duties according
to the requirements of the banking supervision institution of the State Council.

During the course of taking over, restructure or cancellation liquidation, the following measures may be taken against the direct
liable directors, senior managerial personnel and other direct liable persons upon approval of the person-in-charge of the banking
supervision institution of the State Council:

(1)

If the direct liable directors, senior managerial personnel and other direct liable persons exit China, and the interests of the state
will suffer a serious loss, the exit administrative organs shall be given a notice prohibiting them from exiting China in accordance
with the law;

(2)

It shall request the judicial organ to prohibit the banking financial institution from moving, transferring its properties or setting
other rights to its properties.

Article 41

Upon approval of the person-in-charge of the banking supervision institution of the State Council or upon approval of the person-in-charge
of its dispatched institution on the province level, the banking supervision institution shall be empowered to inquire about the
bank accounts of a banking financial institution that is suspected of conducting illegal financial operations, its functionaries
and other persons involved. With regard to those who are suspected of moving or hiding illegal funds, upon approval of the person-in-charge
of the banking supervision institution, an application may be filed to the judicial organ for freezing the funds.

Chapter V. Legal Liabilities

Article 42

Any of the functionaries engaged in supervising banking supervision institutions is under any of the following circumstances shall
be given an administrative sanction in pursuance of the law; if any crime is constituted, he (she) shall be subject to the criminal
liabilities.

(1)

Violating the requirements in examining and approving the establishment, modifications, termination, operation scope and the specific
operations within the operation scope of the banking financial institutions;

(2)

Violating the requirements in conducting on-site inspections on the banking financial institutions;

(3)

Failing to report the emergencies in accordance with Article 28 of the present Law;

(4)

Violating the requirements in inquiring about the banking accounts or applying for freezing them;

(5)

Violating the requirements in taking measures against or punishing a banking financial institution; or

(6)

Other offences of abusing his (her) powers or neglecting his (her) duties.

With regard to a functionary engaged in supervising banking supervision institutions who embezzles public funds, accepts bribes, betrays
state secrets or divulges the commercial secrets that he (she) knows, if any crime is constituted, he (she) shall be subject to the
criminal liabilities in accordance with the law; if no crime is constituted, he (she) shall be given an administrative sanction in
accordance with the law.

Article 43

Any one who establishes a banking financial institution without approval or illegally carries on operations as a banking financial
institution shall banned by the banking supervision institution of the State Council; if any crime is constituted, he (she) shall
be subject to criminal liabilities; if no crime is constituted, the banking supervision institution of the State Council shall confiscate
its illegal gains; if the amount of the illegal gains is not less than 550, 000 Yuan, a fine of not less than the same amount of
but not more than 5 times of the amount of the illegal gains shall be imposed on it; if there are no illegal gains or the amount
of the illegal gains is less than 550, 000 Yuan, a fine of 500, 000 Yuan up to 2, 000, 000 Yuan shall be imposed on it.

Article 44

Where a banking financial institution is under any of the following circumstances, it shall be ordered to get right by the banking
supervision institution of the State Council. If there are illegal gains, the illegal gains shall be confiscated; if the amount of
the illegal gains are not less than 500, 000 Yuan, a fine of not less than the same amount of or not more than 5 times of the amount
of the illegal gains shall be imposed; if there are no illegal gains or the illegal gains are less than 500, 000 Yuan, a fine of
500, 000 up to 2, 000, 000 Yuan shall be imposed. If the circumstance is extremely serious, or if the banking financial institution
fails to get right within the time limit, the banking supervision institution of the State Council may order it to stop its operations
for internal rectification or withdraw its business license; if any crime is constituted, it shall be subject to the criminal liabilities
according to law:

(1)

Establishing a branch without approval;

(2)

Making modification or terminating without approval;

(3)

Violating any of the regulations, or carrying on operations without approval or without registration;

(4)

Violating any of the regulations, elevating or lowering savings interest rates and credit interest rates.

Article 45

Where a banking financial institution is under any of the following circumstances, it shall be ordered to get right by the banking
supervision institution of the State Council, and shall be imposed on a fine of 200, 000 up to 500, 000 Yuan; if the circumstance
is extremely serious, or if it fails to get right within the time limit, the banking supervision institution of the State Council
may order it to stop its operations for internal rectification or withdraw it business license; if any crime is constituted, it shall
be subject to criminal liabilities in accordance with the law:

(1)

Appointing directors and senior managerial personnel without undergoing qualification examination;

(2)

Refusing or hindering the non-on-site supervisions or on-site inspections;

(3)

Providing false statements, reports and other documents and materials or providing statements, reports and other documents and materials
without disclosing imports facts;

(4)

Failing to disclose the information as required;

(5)

Violating the prudent operation rules seriously; or

(6)

Refusing to execute the measures as provided in Article 37 of the present Law.

Article 46

Where a banking financial institution fails to provide the statements, reports and other documents and materials as required, it shall
be ordered to get right the banking supervision institution within a time limit. If it fails to get right within the time limit,
it shall be imposed on a fine of 100, 000 up to 300, 000 Yuan.

Article 47

Where a banking financial institution is in violation of the laws, administrative regulations and the relevant regulation of the state
on banking supervision, the banking supervision institution shall not only punish it in accordance with Articles 43 through 46 of
the present Law, but also may take the following measures in light of the different circumstances:

(1)

To order the banking financial institution to give a disciplinary sanction to the direct liable directors, senior managerial personnel
and other liable persons;

(2)

If the offences of the banking financial institution constitute no crime, the direct liable directors, senior managerial personnel
and other direct liable persons shall be given a warning, and be imposed on a fine of 50, 000 up to 500, 000 Yuan;

(3)

To disqualify the direct liable directors, senior managerial personnel from taking the positions for a certain time period to even
a life-long period, to prohibit the direct liable directors, senior managerial personnel and other direct liable persons from engaging
in banking operations for a certain time period to even a life-long period.

Chapter VI. Supplementary Provisions

Article 48

Where it is otherwise provided for the supervision over the policy banks and financial assets management companies established within
the People’s Republic of China in the laws and administrative regulations, the relevant laws and administrative regulations shall
prevail.

Article 49

Where it is otherwise provided for the supervision over the foreign-funded banking financial institutions, the Sino-foreign joint
equity banking financial institutions and the branches of foreign banking financial institutions established within the People’s
Republic of China in the laws and administrative regulations, the relevant laws and administrative regulations shall prevail.

Article 50

The present Measures shall be implemented as of February 1, 2004.

The Standing Committee of the National People’s Congress
2003-12-27

DETAILED RULES FOR THE IMPLEMENTATION OF THE TOBACCO PATENT SALES LAW

Detailed Rules For The Implementation of the Tobacco Patent Sales Law of the People’s Republic of China

CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO TOBACCO PATENT SALES LICENSES CHAPTER THREE PLANTATION, PURCHASE AND APPROPRIATION OF TOBACCO
LEAVES CHAPTER FOUR PRODUCTION OF TOBACCO PRODUCTS CHAPTER FIVE SALES OF TOBACCO PRODUCTS CHAPTER SIX TRANSPORTATION OF PATENT SALES
TOBACCO PRODUCTS CHAPTER SEVEN PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER TIPS, CIGARETTE CELLULOSE, AND SPECIAL CIGARETTE MAKING
MACHINERIES CHAPTER EIGHT IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNICAL COOPERATION CHAPTER NINE SUPERVISION AND EXAMINATION
CHAPTER TEN LEGAL LIABILITY CHAPTER ELEVEN SUPPLEMENTARY PROVISIONS

Article 1 The detailed rules have been formulated pursuant to the “Tobacco Patent Sales Law of the People’s Republic of China” (hereinafter
referred to as “Tobacco Patent Sales Law”).

Article 2 Tobacco patent sales refer to monopoly of the State of the administration of production, marketing and import and export of patent
tobacco products.

Article 3 Patent cut tobacco refers to tobacco filaments, dust and granules processed with tobacco leaves, re-cured tobacco leaves and tobacco
sheets as raw materials.

Article 4 Institution of functions and administrative system of departments in charge of tobacco patent sales of the State Council and various
provinces, autonomous regions and municipalities shall be done in accordance with the provisions of Article 4 of the Tobacco Patent
Sales Law. For cities and counties which do not have administrative departments in charge of tobacco patent sales, the departments
of the cities and counties in charge of tobacco patent sales shall take charge of such rules under dual leadership of the tobacco
patent sales administrative departments in charge at the next higher level and the people’s governments at the same level, with the
tobacco patent sales administrative departments in charge at the next higher level to assume the main leadership.

Article 5 The State shall control over the tar contents of cigarettes and cigars and major additives to cigarettes and cigars. Tobacco products
manufacturers should not use harmful additives and colorants in violation of the ralated provisions by the State.

CHAPTER TWO TOBACCO PATENT SALES LICENSES

Article 6 Application for tobacco patent sales licenses shall be required according to the provisions of the Tobacco Patent Sales Law and the
provisions of this set of rules for producing and handling wholesale and retail sale of tobacco products subject to patent sales
and for handling imports and exports of such products and for handling purchase and marketing of foreign tobacco products.

Tobacco Patent sales licenses are divided into:

(1) Tobacco Patent Production Enterprise License;

(2) Tobacco Patent Wholesale Enterprise License;

(3) Tobacco Patent Retail Sale Enterprise License;

(4) Special Tobacco Monopoly Business License;

Article 7 The following requirements shall be met in obtaining Tobacco Patent Production Enterprise Licenses:

(1) To have adequate amount of funds for producing the patent tobacco products;

(2) To have the technology and equipment for producing the patene tobacco products;

(3) To adapt to the requirements of the State industrial policies for the tobacco industry; and

(4) To adapt to other requirements as provided for by the State Council department in charge of tobacco potent sales.

Article 8 The following requirements shall be met in obtaining Tobacco Patant Wholesale Enterprise Licenses:

(1) To have adequate funds for wholesale of patent tobacco products;

(2) To have adaquate operational site and personnel;

(3) To conform to the requirements of the distribution of patent tobacco wholesale enterprises; and

(4) To conform to other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 9 The following requirements shall be met in obtaining Tobacco Patent Retailsales Enterprise Licenses:

(1) To have adequate funds for retailsale of patent tobacco products;

(2) To have the fixed site for business operations;

(3) To conform to the requirements of the distribution of patent tobacco retailsales enterprises; and

(4) To conform to other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 10 The following requirements should be met for obtaining Tobacco Patent Sales Enterprise Licenses:

(1) To have corresponding funds for handling tobacco and related products patent sales;

(2) To have a fixed site and adequate professional personnel for business operation;

(3) To conform with the rational distribution of tobacco patent retail sales enterprises; and

(4) To conform with other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 11 Administrative department in charge of tobacco patent sales under the State Council shall be responsible for issuance of licenses
and administration of patent sales of tobacco products and transport of such products according to the Tobacco Patent Sales Law and
the provisions of this set of regulations.

Article 12 In applying for a license for the production of tobacco products for patent sales, an application should first of all be filed with
the administrative departments in charge of tobacco patent sales of the province, autonomous region or municipality (hereinafter
referred to as provincial level), for an examination comments and submitted to the administrative department in charge of tobacco
patent sales under the State Council for approval and issuance of the license.

Article 13 In applying for licenses for wholesale of tobacco patent products for trans-provincial, autonomous regional or municipal operations,
an application should be first of all filed with the provincial level administrative departments in charge of tobacco patent sales
for examination and comments and then submitted to the administrative department under the State Council in charge of tobacco patent
sales for approval and issuance of the license.

In applying for a license for wholesale of tobacco patent sales products within a province, autonomous region or municipality, an
application should first of all be filed with the administrative departments in charge of tobacco patent sales in its domicile for
examination comments and then submitted to the provincial level administrative departments in charge of tobacco patent sales for
approval and issuance of the license.

Article 14 In applying for a license for patent retail sales of tobacco products, the provisions of the Tobacco Patent Sales Law shall apply.

Article 15 In applying for a business license for special tobacco patent sales for import and export of tobacco patent sales products or sales
of foreign patent sales tobacco products, an application should first of all be filed with the provincial level administrative departments
in charge of tobacco patent sales for examination and comments and then submitted to the administrative department under the State
Council in charge of tobacco patent sales for approval and issuance of the license.

In applying for a special business license for sales of duty-free foreign tobacco patent sales products within the Customs control
areas, an application should first of all be filed with the administrative department in charge of tobacco patent sales in its domicile
for examination and comments and then submitted to the provincial level administrative department in charge of tobacco patent sales
for approval and issuance of the license.

Article 16 Organs responsible for issuance of tobacco patent sales licenses should, regularly or irregularly check enterprises or individuals
that have obtained such licenses. If any case is found to have failed to meet the requirements of the Tobacco Patent Sales Law and
this set of regulations, the organs that issued the license shall order a temporary stop of the patent sales for carrying out a rectification
until all the requirements are met.

The specific procedures for control of tobacco patent sales licenses shall be worked out by the administrative department in charge
of tobacco patent sales under the State Council according to the provisions of this set of regulations.

CHAPTER THREE PLANTATION, PURCHASE AND APPROPRIATION OF TOBACCO LEAVES

Article 17 Administrative department in charge of tobacco patent sales under the State Council shall, together with people’s governments of
related provinces, autonomous regions and municipalities, map out plans for tobacco plantation according to the requirements of rational
distribution and the State plans under the principle of improved strains, regionalization and standardization.

Article 18 Tobacco leaves should be purchased in a unified way by tobacco companies or their entrusted units. Tobacco companies or their entrusted
units may, according to needs, open tobacco purchasing stations (points) to purchase tobacco in areas that have received plans for
purchasing tobacco issued by the State. The opening of such purchasing stations (points) should get the approval of provincial level
administrative departments in charge of tobacco patent sales. Without approval, no unit or individual is allowed to purchase tobacco
leaves.

Article 19 Groups for grading of tobacco leaves should be erected by local administrative departments in charge of tobacco patent sales, together
with related departments at the same level and tobacco producers to coordinate appraisals of grades of tobacco leaves for purchase.

Article 20 Plans for State reserves, exports and appropriation of tobacco leaves shall be issued by the planning department of the State Council.

CHAPTER FOUR PRODUCTION OF TOBACCO PRODUCTS

Article 21 Startups of tobacco product producers shall be applied by the provincial level tobacco patent sales administrative departments to
the State Council administrative department in charge of tobacco patent sales for approval and issuance of licenses and to the administrations
for industry and commerce for registration as tobacco patent sales production enterprises.

Article 22 Producers of tobacco products should strictly operate according to the production plan issued by the State.

Article 23 It is forbidden to use rotten tobacco leaves to make cigarettes, cigars or cut tobacco.

Article 24 Registrations of trademarks should be undertaken for cigarettes, cigars and packed cut tobacco. In application for the registration,
document of approval for production issued by the State Council administrative Department in charge of tobacco patent sales should
be presented according to law.

CHAPTER FIVE SALES OF TOBACCO PRODUCTS

Article 25 Enterprises that have obtained licenses for patent wholesale of tobacco products should operate within the scope and areas specified
in the licenses.

Enterprises or individuals that have obtained licenses for patent retail sales of tobacco products should buy the products for sales
from the local tobacco patent wholesale enterprises and accept the supervision and control by the organs issuing the tobacco patent
sales licenses.

Article 26 A unit or individual without a tobacco wholesale patent license to one time sales of over 50 cartons of cigarettes or cigars shall
be regarded as a wholesale business without license.

Article 27 No unit or individual is allowed to sell illegally produced tobacco products.

Article 28 Producers of tobacco products for patent sales or patent tobacco wholesalers must not provide tobacco products to units or individuals
that are unavailable with tobacco patent retail sales licenses.

Article 29 Cigarettes and cigars to be sold within the territory of PRC should have Chinese words to indicate tar contents of the products and
the words “Cigarette smoking is harmful to health” on the surface of the packs.

Article 30 State Council administrative department in charge of tobacco patent sales shall, if necessary, distribute cigarettes and cigars among
different provinces, autonomous regions and municipalities according to market demand.

Article 31 It is forbidden to sell rotten or deteriorated tobacco products. Rotten or deteriorated tobacco products should be destroyed under
the guidance of administrative departments in charge of tobacco patent sales or related administrative departments.

Article 32 Tobacco products with forged or phony trademarks discovered by related departments according to law shall be destroyed openly by
administrative departments in charge of tobacco patent sales according to the related regulations but not to be resold by any means.

Article 33 The appraisals and testing of tobacco products with forged or phony trademarks shall be carried out by tobacco quality testing stations
designated by quality control and supervision department of the State Council or the people’s governments of provinces, autonomous
regions and municipalities.

CHAPTER SIX TRANSPORTATION OF PATENT SALES TOBACCO PRODUCTS

Article 34 Licenses for transporting patent sales tobacco products shall be approved and issued by administrative departments in charge of tobacco
patent sales at and above provincial level or their authorized organs. Procedures for administration of licenses for transport of
patent sales tobacco products shall be worked out by the State Council administrative department in charge of tobacco patent sales.

Article 35 Trans-provincial, autonomous regional and municipal transportation of imported patent sales tobacco products, home-made special tobacco
machineries and cigarette cellulose, filter tips and imported cigarette paper cuts should be made by one’s own effort or on consignment
basis on the strength of licenses for transport of patent sales tobacco products signed and issued by the administrative department
of the State Council in charge of tobacco patent sales.

Trans-provincial, autonomous regional and municipal transportation of domestic patent sales tobacco products other than domestically
manufactured tobacco special machinery and cigarette cellulose, filter tips and imported cigarette paper cuts should be made by one’s
own effort or on consignment basis on the strength of licenses for transport of patent sales tobacco products signed and issued by
the administrative department of the State Council in charge of tobacco patent sales or by provincial level tobacco patent sales
administrative department.

Trans-city or county transportation of patent sales tobacco products within a province, autonomous region or municipality should be
made by one’s own effort or on consignment basis on the strength of licenses for transport of patent sales tobacco products signed
and issued by the provincial level administrative departments in charge of tobacco patent sales or by units entrusted by them.

The transportation of confiscated smuggled patent sales tobacco products should be made by one’s own effort or on consignment basis
on the strength of licenses for transport of patent sales tobacco products signed and issued by the administrative department of
the State Council in charge of tobacco patent sales.

Article 36 It shall be considered as transportation of patent sales tobacco products without transport licenses in one of the following cases:

1. The amount and scope of patent sales tobacco products transported have gone beyond the limits as prescribed in the transport licenses;

2. Use of overdue, altered or copied patent sales tobacco products transport licenses;

3. Bearing no license for transport of patent sales tobacco and failure to present valid certificate certifying the purchase of patent
sales tobacco products in the locality; and

4. Other acts involving the transport of patent sales tobacco products without a transport license.

Article 37 The transship of patent sales tobacco products which is put under the control by the Customs shall go through the transshipping formalities
according to the regulations of the Customs on transshipment.

CHAPTER SEVEN PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER TIPS, CIGARETTE CELLULOSE, AND SPECIAL CIGARETTE MAKING MACHINERIES

Article 38 Tobacco patent wholesale enterprises and tobacco products production enterprises should purchase cigarette paper, filter tips, cigarette
cellulose and special cigarette making machineries exclusively from enterprises with patent tobacco production licenses, special
patent tobacco businesses licenses. Enterprises producing cigarette paper, filter tips, cigarette cellulose and special cigarette
making machineries should not sell their products to units or individuals without a patent tobacco production license.

Article 39 The procurement, sale and transfer of special cigarette making machineries should have prior approval of the administrative department
in charge of patent tobacco sales under the State Council.

The catalog of special cigarette making machineries shall be compiled by the administrative department in charge of patent tobacco
sales under the State Council.

Article 40 No unit or individual is allowed to sell special cigarette making machineries, cigarette paper, filter tips and cigarette tip cellulose.

Obsolete and illegally assembled special cigarette making machineries, sub-standard cigarette paper, filter tips and cigarette cellulose
and their odds and ends should be put under the disposal of local administrative departments in charge of patent tobacco sales and
are not allowed to be sold by any means.

CHAPTER EIGHT IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNICAL

Article 41 The establishment of patent tobacco production enterprises with foreign investment should get the prior consent from the administrative
department in charge of tobacco patent sales under the State Council as according to related regulations of the State.

Article 42 Import of patent sales tobacco products can only be handled by enterprises with special patent tobacco business licenses. The plan
for such import should be examined and approved by the administrative department in charge of tobacco patent sales under the State
Council.

Article 43 Tobacco products imported duty-free should be kept at bonded warehouses designated by the Customs and locked and controlled by local
administrative departments in charge of tobacco patent sales and the Customs houses designated by the administrative department in
charge of tobacco patent sales under the State Council. The Customs should certify each package of foreign tobacco products imported
duty-free according to the import plan which has been approved by the administrative department in charge of tobacco patent sales
under the State Council.

Article 44 Duty-free cigarettes and cigars should only be put on retail sales inside the areas under the control of the Customs with special
signs prescribed by the administrative department in charge of tobacco patent sales under the State Council on the packs and cartons.

Article 45 Cigarettes and cigars especially for export should bear the Chinese words of “For Export Only” on the packs and cartons.

CHAPTER NINE SUPERVISION AND EXAMINATION

Article 46 Administrative departments in charge of tobacco patent sales should supervise over and check on the implementation of the Tobacco
Patent Sales Law and the provisions of this set of regulations, explore and punish cases that have been found violated the Tobacco
Patent Sales Law and the provisions of this set of regulations and, together with related departments of the State, check and punish
smuggling of tobacco patent sales products, sales of smuggled goods and fake or shoddy tobacco patent sales products.

Article 47 The opening of tobacco patent sales markets should be examined and approved by the administrative department in charge of tobacco
patent sales under the State Council. Tobacco patent sales markets that have not been approved should be banned by the people’s governments
above the county level.

Article 48 The administrative department in charge of tobacco patent sales under the State Council shall, if necessary, set up offices in major
areas according to the actual circumstances; provincial administrative departments in charge of tobacco patent sales shall, if necessary,
station personnel in tobacco patent production and business enterprises. The offices or personnel stationed shall carry out supervision
and checks on production and business activities within the scope authorized by the departments that have set up the offices or stationed
personnel.

Article 49 In examining and punishing cases that have violated the Tobacco Patent Sales Law and the provisions of this set of regulations, administrative
departments in charge of tobacco patent sales may exercise the following powers and functions:

1. to inquire into parties, suspects and witnesses concerned;

2. to check the business sites of parties concerned and dispose of the patent sales tobacco products produced or managed illegally;
and

3. to refer to and copy contracts, invoices, accounts, bills, records, documents, business letters and other materials related to
the law- violating acts.

Article 50 Administrative departments in charge of tobacco patent sales may on its own or together with related departments carry out check
and handle illegal transportation of patent sales tobacco products.

Article 51 Patent sales tobacco products confiscated according to law by the people’s court or the patent administrative departments concerned
in charge of tobacco patent sales and patent sales tobacco products used as penalty funds, pecuniary money or tax payment should
be auctioned according to relevant regulations of the State and bidders should enter in the auction upon the strength of tobacco
patent wholesale licenses. Bidders for foreign tobacco products should have acquired a tobacco patent sales business license.

Auctioning enterprises established according to law shall verify the qualifications of bidders and accept supervision by administrative
departments concerned in charge of tobacco patent sales in their work of auctioning tobacco patent sales products.

Article 52 In performing their duties, tobacco patent sales inspection personnel of administrative departments concerned in charge of tobacco
patent sales shall wear badges issued by the tobacco patent sales administrative department under the State Council and present inspection
certificates issued by provincial level tobacco patent sales administrative departments.

Article 53 Units or individuals who have done a good work in reporting cases violating tobacco patent sales law shall be rewarded.

Article 54 Punishments as defined in Article 30 of this set of regulations should be meted out as:

1. For purchasing tobacco leaves without authorization, a fine amounting to over 20% and less than 50% of the value of tobacco purchased
illegally shall be imposed and the tobacco leaves illegally purchased shall be purchased at State listed prices;

2. For cases of purchasing more than 1,000 kilograms of tobacco leaves without authorization, the tobacco leaves illegally purchased
together with all the illegal proceeds, shall be confiscated.

Article 55 Punishments as defined in Article 31 of this set of regulations shall be meted out as:

1. For consigning or self-transportation of tobacco patent sales products without transport passes or the amount of tobacco patent
sales products carried has exceeded the amount prescribed in the transport passes, a fine amounting to over 20% and less than 50%
of the value of the products illegally transported and the tobacco patent sales products may be pruchased at State listed prices.

2. Tobacco patent sales products transported illegally and all the proceeds shall be confiscated in one of the following cases:

(1) The value of tobacco patent sales products illegally transported has exceeded RMB 50,000 or the amount of cigarettes has exceeded
100 parcels (one parcel includes 10,000 cigarettes);

(2) Those who have been punished at least twice by administrative departments in charge of tobacco patent sales;

(3) Resisting the inspection by the inspection personnel of administrative departments in charge of tobacco patent sales;

(4) Illegally transporting smuggled tobacco patent sales products;

(5) Transporting tobacco patent sales products manufactured by enterprises without tobacco patent sales production licenses;

(6) Illegal camouflaged transportation of tobacco patent sales products;

(7) Evading inspection by using special purpose transportation means to carry tobacco patent sales products; and

(8) Other illegal transportation acts and the cases are very serious.

3. For units or individuals who intentionally transport tobacco patent sales products without transport passes, their illegal proceeds
shall be confiscated and a fine amounting to over 10% and less than 20% of the value of the tobacco patent sales products transported
shall be imposed.

4. For cases of sending by post or carrying tobacco leaves and tobacco products from one place to another with the sending or carrying
amounts exceeding more than one time the limits set by the related department of the State Council, punishments shall be meted out
according to the provisions of Article 32 of this set of regulations.

Article 56 Punishments as defined in Article 32 of this set of regulations shall be meted out as:

1. For enterprises producing tobacco products without patent tobacco production licenses, administrative departments in charge of
tobacco patent sales shall order them to shut down and confiscate all the illegal proceeds and impose a fine amounting to one time
and less than two times the value of the tobacco products produced and the tobacco products confiscated shall be destroyed openly.

2. For enterprises producing cigarette paper, filter tips, tobacco cellulose or special equipment for making tobacco without licenses,
administrative departments in charge of tobacco patent sales shall order them to shut down and confiscate all the illegal proceeds
and impose a fine amounting to one time and less than two times the value of the products produced and the products confiscated shall
be destroyed openly.

Article 57 For cases of illegally handling wholesales of tobacco products without licenses as defined in Article 33 of this set of regulations,
administrative departments in charge of tobacco patent sales shall order them to shut down or stop the wholesale business, confiscate
all the illegal proceeds and impose a fine amounting to over 50% and less than one time the value of the tobacco products sold.

Article 58 Punishments as defined in Article 32 of this set of regulations shall be meted out as:

1. For handling import and export business of tobacco patent sales products without licenses, administrative departments in charge
of tobacco patent sales shall order them to stop such business, confiscate all the illegal proceeds and impose a fine amounting to
over 50% and less than one time the value of the business handled.

2. For businesses handling the selling and buying of foreign tobacco products without special tobacco patent sales business licenses,
administrative departments in charge of tobacco patent sales shall order them to stop such business, confiscate all the illegal proceeds
and impose a fine amounting to 20%-50% of the value of the products handled illegally.

Article 59 For licensed tobacco patent wholesale enterprises that have violated the provisions of the first paragraph of Article 25 of this
set of regulations by handling wholesales beyond the business and geographical scopes, administrative departments in charge of tobacco
patent sales shall order them to suspend their businesses, and confiscate all the illegal proceeds and impose a fine amounting to
10%- 20% of the value of the products handled.

Article 60 For tobacco patent retail sale enterprises or individuals that have violated the provisions of the second paragraph of Article 25
of this set of regulations by failing to procure products from local tobacco patent wholesalers, administrative departments in charge
of tobacco patent sales shall confiscate all the illegal proceeds and impose a fine amounting to 5%-10% of the value of the products
procured.

Article 61 For cases that handle retail sale of tobacco products without tobacco patent retail sales licenses, administration for industry and
commerce or administrative departments in charge of tobacco patent sales, according to the opinion of administration for industry
and commerce, shall order them to stop their retail sales businesses, confiscate all the illegal proceeds and impose a fine amounting
to 20%- 50% of the value of the products handled.

Article 62 For cases of marketing illegally manufactured tobacco patent sales products in violation of Article 27, the first paragraph of Article
40 of this set of regulations, administrative departments in charge of tobacco patent sales shall order them to stop the marketing
operations, confiscate all the illegal proceeds and impose a fine amounting to 20%-50% of the value of the products marketed and
the tobacco patent sales products confiscated shall be destroyed openly.

Article 63 For cases of handling trans-provincial, autonomous regional and municipal tobacco products wholesale business without obtaining tobacco
patent wholesale licenses in violation of this set of regulations, administrative department in charge of tobacco patent sales shall
impose a fine amounting to over 10% and less than 20% of the value of the total amount handled.

Article 64 For cases that provide tobacco patent sales products to units or individuals without tobacco patent sales licenses in violation of
the provisions of Article 28 and the second paragraph of Article 38 of this set of regulations, administrative departments in charge
of tobacco patent sales shall confiscate all the illegal proceeds and impose a fine amounting to 20%-50% of the value of the products
sold.

Article 65 For tobacco wholesale enterprises

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Russia Laws

The basic law

Concluding and Transitional Provisions

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE TRANSITIONAL POLICY AND MEASURES AFTER CANCELING ADMINISTRATIVE EXAMINATION AND APPROVAL OF FOREIGN EXCHANGE ADMINISTRATION OF SOME CAPITAL PROJECTS

MEASURES FOR THE QUARANTINE AND ADMINISTRATION OF HEREDITARY SUBSTANCE OF ENTRY ANIMALS

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE AND CHINA INSURANCE REGULATORY COMMISSION ON THE RELEVANT ISSUES CONCERNING THE ADMINISTRATION OF SALE AND PAYMENT OF FOREIGN EXCHANGE IN OVERSEAS REINSURANCE CEDING

MEASURES FOR THE CLASSIFIED ADMINISTRATION OF ENTERPRISES MANUFACTURING EXPORT INDUSTRIAL PRODUCTS

INTERIM PROVISIONS CONCERNING THE MANAGEMENT OF CHINESE-FOREIGN JOINT JOB INTERMEDIARIES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON DELEGATING THE POWER TO APPROVE ENTERPRISES OF CATEGORY A FOR ENJOYING EXPORT TAX REFUND TO LOWER LEVELS

DETAILED RULES FOR THE IMPLEMENTATION OF THE MEASURES FOR THE ADMINISTRATION OF AUTO FINANCING COMPANIES

SUPPLEMENTARY NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE TAX REFUND RATE FOR EXPORTED GOODS

BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DETAILED RULES FOR THE IMPLEMENTATION OF THE TOBACCO PATENT SALES LAW

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

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CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7