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RULES FOR THE IMPLEMENTATION OF TARIFF RATE QUOTA ADMINISTRATION OF THE IMPORTED WOOL AND WOOL TOPS

The Ministry of Commerce

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

No.52

Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and Wool Tops, formulated in accordance with
the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products, is hereby announced.

Ministry of Commerce

September 28, 2003

Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and Wool Tops

Article 1

These rules are formulated in accordance with the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural
Products promulgated by the Ministry of Commerce and the National Development and Reform Commission for the purpose of implementing
tariff rate quota administration of wool and wool tops import.

Article 2

The tariff rate quota of imported wool is 287000 ton in 2004.The quota of imported wool tops is 80000ton in 2004.

Article 3

All the wool and wool tops which are imported by trade shall be administrated by tariff rate quota.

Article 4

Tariff rate quotas of wool and wool tops for the year of 2004 shall be distributed by import contracts on the principle of anyone
who applies earlier getting the quota earlier. The applicants shall apply tariff rate quotas of wool and wool tops on the strength
of import contracts and other relevant materials. The organization authorized by the Ministry of Commerce shall issue Tariff Rate
Quota Certificate of the Imported Agricultural Products on the principle of anyone who applies earlier getting the quota earlier.
The application shall not be accepted when the issued certificates have reached the quantity of tariff rate quotas of wool and wool
tops for the year of 2004.

Article 5

The requirements for application:

(1)

The enterprises registered at the administrative department for industry and commerce before January 1, 2004. (Need to submit Copy
of Business License for Enterprise as legal Person.)

(2)

Having fine financial condition and good records of paying taxes.(Need to submit the relevant materials of the year of 2002 and 2003.)

(3)

No record of breaking the regulations of the customs, the administrative departments of the industry and commerce, the tax authorities
and the quality supervision departments from 2001 to 2003.

(4)

Having gone through the annual examination of 2003.

(5)

No violating the Interim Measures of Tariff Rate Quota Administration of the Imported Agricultural Products promulgated by the former
State Development Planning Commission and Rules for the Implementation of Tariff Rate Quota Administration of the Imported Wool and
Wool Tops for the year of 2003.

Article 6

Qualifications for application:

(1)

Production enterprises and traders which have got tariff rate quotas of wool and wool tops in 2003 and have import performance (hereinafter
referred to as applicants who have import performance).

(2)

Production enterprises which have no import performance in 2003 but the sale of products made from wool and wool tops is above RMB50,
000,000 Yuan and the designated wool trading enterprises published by the Ministry of Commerce (including those enterprises published
by the former Ministry of Foreign Trade and Economic Cooperation.)(Hereinafter referred to as applicants who have no import performance).

(3)

The enterprises that have got the Approval Certificate of Processing Trade Operation and engage in processing trade.

Article 7

Applicants for quotas shall make applications to the local authorized organizations where the enterprises are registered on the strength
of the import contracts of wool and wool tops on the principle of possession management. The applicant shall fill in the Application
Form for Tariff Rate Quotas of Wool and Wool tops (see Appendix), and submit the relevant materials.

Article 8

Applicants for quotas may draw the Application Form for Tariff Rate Quotas of the Imported Wool and Wool Tops from the organizations
authorized by the Ministry of Commerce or from the website of the Ministry of Commerce https://www..mofcom.gov.cn/ download and duplicate
the Application Form for Tariff Rate Quotas of Wool and Wool Tops (see Appendix).

Article 9

Applicants for quotas may make applications for several times in a Gregorian calendar year. But they shall comply with:

(1)

For applicant who has import performance, the accumulated applying quantity before September 30,2004 shall not surpass the actual
import quantity in2003 (which means returning the Tariff Rate Quota Certificate of Agricultural Products which has signed and sealed
by the customs to the department which issued the certificate). If the actual import quantity is less than 300ton it may be calculated
in 300ton.

(2)

For applicant who has no import performance, the accumulated applying quantity before September 30, 2004 shall not surpass 300ton.

Article 10

The final users of the quotas who have completely accomplished the import quantity provided by Article 9 (means returning the Tariff
Rate Quota Certificate of the Imported Agricultural Products which has signed and sealed by the customs to the department which issued
the certificate) may continue to apply for import quotas after September 30.

Article 11

After accepting and examining the applications, to those applicants who meet the provisions of Article 5 , Article 6 , Article 9
and Article 10 ,the authorized organizations shall report to the Ministry of Commerce in time through the computer web system, and
fax the examined and signed application forms to the Ministry of Commerce. The sequence of applications determined by the results
showed on the terminator of the management web system of the Ministry of Commerce.

Article 12

After receiving the applications from the website and the faxes in written form, shall notify the examination results to the authorized
organizations in 5 working days.

Article 13

After receiving the notice of approve, the authorized organizations shall issue the Tariff Rate Quota Certificate of the Imported
Agricultural Products in accordance with the quantity of the quotas approved by the Ministry of Commerce in 5 working days.

Article 14

The Tariff Rate Quota Certificate of Agricultural Products shall be valid for 6 months from the date it is issued. But the term of
validity shall not be over December 31, 2004. For the Tariff Rate Quota Certificate of the Imported Agricultural Products used for
processing trade operation, the term of validity shall not be over the end date for the finished products to re-export.

Article 15

For those goods setting out from the port of departure, and arriving in the next year, the final users shall apply for delaying to
the organizations originally issuing the certificates with the relevant certificates and documents before December 31, 2004. The
delaying shall not be over the end of June as the latest. For the enterprises engaging in processing trade operation which haven’t
completed part or all of the import, the part of the goods that hasn’t been imported yet may apply for the Tariff Rate Quota Certificate
of the Imported Agricultural Products for 2005, but the term of validity of the new quota certificate shall not be over the end date
for the finished products to re-export.

Article 16

If the processing trade operation needs to be changed and delayed, the operator shall draw a new Tariff Rate Quota Certificate of
the Imported Agricultural Products from the organization originally issuing the certificate, on the strength of the Identification
of the Change of the Approval Certificate of Processing Trade Operation and the Tariff Rate Quota Certificate of the Imported Agricultural
Products, but the term of validity shall not be over the time limit of change and delay stipulated in the Identification of the Change
of the Approval Certificate of Processing Trade Operation.

Article 17

The final user who haven’t used the tariff rate quotas in the term of validity of the quota certificate shall return the original
copy of the quota certificate to the organization originally issuing the certificate. The Ministry of Commerce shall take back the
quotas stipulated in the quota certificate, add them to the remaining sum of the tariff rate quotas and stop accepting and approving
the application of the user for the quotas in the year.

Article 18

The enterprises which get the Tariff Rate Quota Certificate of the Imported Agricultural Products on the strength of the counterfeited
contracts and materials shall be punished in accordance with the relevant provisions of the Interim Measures of Tariff Rate Quota
Administration of the Imported Agricultural Products.

Article 19

After the imported goods completes all procedures of the customs, the final user shall return the original copy of the first form
of the Tariff Rate Quota Certificate of the Imported Agricultural Products (the form of the consignee completing the procedures of
the customs) to the organization originally issuing the certificate.

Article 20

The import of wool and wool tops shall be operated in accordance with the relevant provisions of the Measures on the Administration
of the Designated Trading of Import Goods promulgated by the former Ministry of Foreign Trade and Economic Cooperation( the No.21
Order of the MOFTEC in 2001).

Article 21

The Ministry of Commerce is responsible for the interpretation of these rules.

Appendix:

(1)

The table of tax items and tax rate of wool and wool tops for 2004

(2)

the Application Form for Tariff Rate Quotas of Wool and Wool Tops



 
The Ministry of Commerce
2003-09-28

 







REPLY OF THE SUPREME COURT OF THE PEOPLE’S REPUBLIC OF CHINA TO THE LETTER OF THE MINISTRY OF COMMERCE CONCERNING CONFIRMATION OF WHETHER THE “PROVISIONS ON SOME ISSUES REGARDING TO THE TRIAL OF CIVIL DISPUTE CASES RELATED TO THE ENTERPRISE RESTRUCTURING” IS APPLICABLE TO FOREIGN INVESTMENT

Reply of the Supreme Court of the People’s Republic of China to the Letter of the Ministry of Commerce concerning Confirmation of
Whether the “Provisions on Some Issues Regarding to the Trial of Civil Dispute Cases Related to the Enterprise Restructuring” Is
Applicable to Foreign Investment

Min Er Wai Fu [2003] No.13

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

We have received your Letter of Shang Fa Han [2003] No. 33 for Confirmation of Whether the “Provisions on Some Issues Regarding to
the Trial of Civil Dispute Cases Related to the Enterprise Restructuring” Is Applicable to Foreign Investment, which was sent to
us on September 12, 2003. We hereby make the following reply after deliberation:

Although the acts of joint venture and cooperation between Chinese enterprises and foreign enterprises, and the investment acts of
foreign enterprises in China do concern the alteration of owners, assets and capital of enterprises, and the shareholders thereof,
they don’t fall within the category of state-owned enterprises restructuring, and there are special laws and regulations to regulate
them, therefore the foreign investment acts shall not be regulated by the above-mentioned judicial interpretation.

Letter of the Ministry of Commerce concerning the Confirmation of Whether the “Provisions on Some Issues Regarding to the Trial of
Civil Dispute Cases Related to the Enterprise Restructuring” Is Applicable to Foreign Investment (Omitted)

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

October 20, 2003



 
The Supreme Court of the People’s Republic of China
2003-10-20

 







PROVISIONAL REGULATION ON INVESTMENT IN CINEMAS BY FOREIGN INVESTORS

e01709

State Administration of Radio, Film and Television

Order of the State Administration of Radio, Film and Television

No.21

The Provisional Regulation on Investment in Cinemas by Foreign Investors, which was passed at the executive meeting of the State Administration
of Radio, Film and Television on September 28, 2003 and approved by the Ministry of Commerce and the Ministry of Culture of the People’s
Republic of China, is hereby issued and shall go into effect on January 1, 2004.

Xu Guangchun, Director of the State Administration of Radio, Film and Television

Lv Fuyuan, Minister of Commerce of the People’s Republic of China

Sun Jiazheng, Minister of Culture of the People’s Republic of China

November 25, 2003

Provisional Regulation on Investment in Cinemas by Foreign Investors

Article 1

The present Regulation is formulated according to h the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures,
the Law of the People’s Republic of China on Chinese-foreign Contractual Joint Ventures, the Regulation on Film Administration, and
other relevant laws and regulations with the aim to meet the demand of the reform and opening process, to absorb foreign capital,
to introduce advanced technology and equipment, and to promote the prosperous development of the film industry of China.

Article 2

The present Regulation shall be applicable to the foreign companies, enterprises, other economic organizations or individuals (hereinafter
referred to as foreign parties) who, according to the principle of equality and mutual benefit and upon approval of the Chinese government,
establish Chinese-foreign equity joint ventures or contractual joint ventures, construct or reconstruct cinemas, and engage in film
projection business cooperatively with the companies or enterprises registered within China (hereinafter referred to as the Chinese
party).

Article 3

Overseas investors are not permitted to establish any solely-owned cinemas or form any film network companies.

Article 4

Foreign investors who intend to invent in cinemas shall satisfy the conditions as follows:

1)

The arrangements and planning are in line with the local cultural facilities;

2)

The registered capital is no less than 6 million Yuan;

3)

There are fixed business (showing) premises;

4)

For the Chinese-foreign equity joint cinemas to be established, the share of the investment made by the Chinese party in the registered
capital shall account for no less than 51%; for the Chinese-foreign equity joint cinemas to be established in such pilot cities as
Beijing, Shanghai, Guangzhou, Chengdu, Xi’an, Wuhan, and Nanjing, the share of the investment made by the foreign party in the registered
capital may not be above 75%;

5)

The period of the equity or contractual joint venture shall not exceed 30 years; and

6)

The equity or contractual joint venture shall abide by the relevant laws, regulations and provisions of China.

Article 5

In the case that the Chinese party makes the investment with state-owned assets (excluding cash), the relevant formalities shall be
carried out in the light with the relevant provisions on the management of state-owned assets.

Article 6

The establishment of a foreign-funded cinema shall be reported for examination and approval in accordance with the procedures as follows:

1)

The Chinese party must submit an application to the provincial administrative department of commerce of the place where it is located,
providing the documents as follows:

1.

The project application form of the establishment of the foreign-funded cinema;

2.

The certificate of juridical person status of the Chinese party, the documents relating to the land use right of the cinema, and the
creditability certificate issued by the bank;

3.

The qualification certificate of the foreign party, the creditability certificate issued by the bank, and the financial status certificate
issued by the accounting firm;

4.

The notice for preliminary approval of the cinema name issued by the department of industry and commerce administration;

5.

The feasibility study report, contract, and articles of association; and

6.

Other documents required by the laws and regulations and the examination and approving authority.

2)

After obtaining consent from the provincial administrative department of film, the provincial administrative department of commerce
of the place where the applicant is located shall make the examination in accordance with the relevant laws and regulations of the
state on foreign investment, and report to the Ministry of Commerce, the State Administration of Radio, Film and Television, and
the Ministry of Culture for archival purposes. The Certificate of Approval for Foreign-funded Enterprises shall be issued to the
foreign-funded enterprise that has been approved to establish.

3)

For a foreign-funded cinema that has been permitted to establish, the applicant shall, within one month from the day of receiving
the Certificate of Approval for Foreign-funded Enterprises, carry out registration formalities with the provincial department of
industry and commerce administration by taking the Certificate of Approval for Foreign-funded Enterprises.

4)

After the construction or reconstruction of a foreign-funded cinema has been finished and after the said cinema has been checked and
accepted by the relevant departments, the applicant shall apply for the License for Film Projection with the provincial administrative
department of film by taking the Certificate of Approval for Foreign-funded Enterprises and the Business License before starting
the business of film projection.

Article 7

For any change of the shareholding or investment of a foreign-funded cinema that has been established, the procedures prescribed in
Article 6 herein shall be followed.

Article 8

A foreign-funded cinema must abide by the relevant laws and regulations of the state, run businesses in the light with the Regulation
on Film Administration, and subject itself to the supervision and administration of the relevant departments of the Chinese government.
For each film to be shown, the cinema must hold a License for Public Film Projection issued by the State Administration of Radio,
Film and Television (SARFT), and any smuggled or pirate films are not permitted to be shown, and any video tapes, VCD, or DVD are
not permitted to be shown for commercial purpose.

Article 9

Foreign investors who are engaged in any other entertainment business affiliated to the cinema shall comply with the relevant provisions
of the state.

Article 10

For investors from Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan area who establish any
enterprises engaging in film projection in the mainland of China, the present Regulation shall be referred to.

Article 11

The present Regulation and the appendix hereto shall go into effect on January 1, 2004. The Provisional Regulation on Investment in
Cinemas by Foreign Investors issued by the SARFT, the Ministry of Foreign Trade and Economic Cooperation and the Ministry of Culture
on October 25, 2000, shall be abolished at the same time when the present Regulation and the appendix hereto go into effect.

Appendix:

In order to promote the establishment of closer economic and trade relationship between Hong Kong, Macao and the mainland of China,
and to encourage the service providers from Hong Kong and Macao to establish enterprises engaging in film projection in the mainland
of China, and in the light with the Arrangements of the Mainland of China and Hong Kong on Establishing Closer Trade and Economic
Relationship and the Arrangements of the Mainland of China and Macao on Establishing Closer Trade and Economic Relationship, the
following special provisions are hereby made with respect to the investment in cinema made by service providers from Hong Kong and
Macao as provided for in the Interim Regulation on Investment in Cinemas by Foreign Investors:

1.

From January 1, 2004, service providers from Hong Kong and Macao shall be permitted to construct, reconstruct and operate cinemas
in the mainland of China through equity or contractual joint ventures. The service providers from Hong Kong and Macao may hold the
majority shares, but the proportion may not be over 75%.

2.

Other provisions on investment in cinemas by service providers from Hong Kong and Macao in the mainland of China shall still comply
with the Provisional Regulation on Investment in Cinemas by Foreign Investors.



 
State Administration of Radio, Film and Television
2003-11-25

 







OPINIONS OF THE CHINA SECURITIES REGULATORY COMMISSION ABOUT TIGHTENING SEVERAL INTERNAL CONTROL MEASURES FOR THE BUSINESS DEPARTMENTS OF SECURITIES COMPANIES

China Securities Regulatory Commission

Opinions of the China Securities Regulatory Commission about Tightening Several Internal Control Measures for the Business Departments
of Securities Companies

ZhengJianJiGouZi [2003] No. 261

December 15th, 2003

All securities companies:

With a view to regulating the brokerage of securities companies, strengthening the management of the securities business departments,
preventing risks effectively and protecting the legitimate rights and interests of the investors, in accordance with the relevant
provisions in the Securities Law of the People’s Republic of China and the Guide to the Internal Control of Securities Companies,
it is hereby to put forward the opinions about tightening the internal control of the securities business departments as the following:

I.

To strengthen the personnel management of the securities business department

1.

The responsible persons of the securities business department, the computer section of the securities business department and the
section of finance shall be directly appointed and administered by the head office, and a direct and effective channel shall be established
between the head office and the aforesaid persons.

2.

The responsible persons of the finance section and the computer section of a securities business department shall be liable for supervising
and controlling the legal operations of the securities business department. A securities company shall intensify the annual evaluations
of the responsible persons of the securities business departments, the computer sections and the section of finance of the securities
business departments, and shall report the results to the institutions dispatched by the China Securities Regulatory Commission (hereinafter
referred to as CSRC) where the securities business departments are located for archival purposes before the end of April of the next
year.

3.

The posts of the responsible persons of the securities business departments, the computer sections of the securities business departments
and the sections of finance shall be regularly shifted within the range of a securities company, and the shift period shall not exceed
3 years at most. As for a securities business department that has already adopted the way of centralized transactions, the shift
period may be appropriately extended to 5 years upon the approval of the institution dispatched by the CSRC where the securities
department is located. The other important posts of the securities business department shall, according to the specific circumstances,
be shifted within the range of the securities business department in a planned way. The first to-be-shifted posts shall be taken
by the persons who have already been on the aforesaid posts for more than 3 years.

For a securities company that really has difficulties to shift the posts among the trans-province and trans-district securities business
departments, it may refrain from shifting the posts, but it shall conduct on-the-spot audit on each of the relevant securities business
departments every year, and shall submit an audit report for archival purpose to the head office and the institution dispatched by
the CBRC where the securities business departments is located.

4.

Where the responsible person of a securities business department or the responsible person of the finance section of the securities
business department leaves his (her) post, the head office of the securities company shall conduct audit on him (her). The audited
person shall not leave his (her) post, before the audit is completed. The audit shall include, but not be limited to, the information
about whether the securities business department has ever misappropriated the bonds of its clients or not, whether it has illegal
financing or not, whether it has operations beyond its business scope or not, the complaints of its clients and the treatments, and
the responsibilities of the to-be-audited person in these regards.

5.

A securities company shall adopt the mandatory holiday system to the responsible persons of the securities business departments, the
computer sections of the securities business departments, the finance sections and the sections of clients. During the period of
mandatory holidays, the supervision and inspection department of the securities company may conduct on-the-spot audit on the work
they are liable for. For the securities business departments under no post shift system, they shall combine the mandatory holiday
system with the on-the-spot audit.

6.

A securities company shall strengthen the management of the foreign affairs archives involving the persons who take the key posts
of the responsible persons of the securities business departments. The copies of the passports and identity cards held by the responsible
persons of the securities business departments, the computer sections of the securities business departments, the finance sections
and the sections of clients shall be submitted to the institution dispatched by the CSRC where the securities business department
is located for archival purposes. Their contact information (including but not limited to the mobile phone numbers, fixed telephone
numbers and e-mails), family address and other information shall be submitted to the institution dispatched by the CSRC where the
securities business department is located for archival purposes as well.

II.

To specify the setup of posts and the responsibilities of the securities business departments

1.

A securities company shall establish perfect the post responsibility system and normative business operation procedures for the securities
business departments. It shall specify the tasks, grant each post with corresponding responsibilities and functions and build a working
relationship of cooperating with one another, supervising one another and restricting one another.

2.

A securities company shall actively develop the mode of centralized transactions to control the internal risks of the securities business
departments and decrease the posts that need direct human intermediaries. The key posts of a securities business department shall
establish two-person responsibility system. The posts directly involving the fund, portfolio, important blank vouchers, seals and
safety technologies of information system shall establish two-person responsibility system. The posts involving the clients’ depositing
and drawing money, the transfer of the clients’ transaction settlement fund, depository trust and cancellation of designated transactions
shall establish the two-person responsibility system, that is to say, one shall be liable for the handling of the aforesaid operations
and the other for re-examination.

3.

The securities business department shall adopt a reasonable system of separate responsibilities. The keeping of cash and portfolios
shall be separate from the record keeping of accounts.

(a)

The preservation of important blank vouchers, blank contracts, blank letters of authorization and significant seals shall be separated
from the register and use of them. No seal may be affixed to any blank voucher, contract or letter of authorization in advance, the
head office of a securities company shall regularly check the securities business department about its using, registering and managing
of documents. The securities company shall specify the power and procedures for the use of various kinds of seals, and shall perfect
the responsibility system for the preservation, use and register of seals.

(b)

A securities business department’s front office transactions shall be separated from its back office settlements;

(c)

The confirmation of faults and losses shall be separated from that of cancellation after verification;

(d)

The duties of the computer personnel, the accounting personnel and other operating personnel shall not be overlapped.

III.

Strengthening the centralized management of the clients’ transaction settlement funds

1.

Each securities business department may only open not more than 5 special savings accounts for clients’ transaction funds;

2.

A securities business department shall transfer to the head office of the securities company at least 70% of the clients’ transaction
settlement funds;

3.

The head office of the securities company shall regularly and irregularly check the clients” transaction settlement funds of a securities
business department, and shall make pressure tests by transferring the total amount of the clients’ transaction settlement funds
of a securities business department to the head office of the securities for the time being. For the securities business departments
without adopting the post-shifting system, the securities company shall conduct at least one pressure test every month.

IV.

To establish perfect securities business department audit system and to tighten the audit

1.

A securities company shall establish a real-time monitoring system and a risk pre-warning system, which shall be able to monitor the
activities involving large sums of money and the transactions, and be able to give warnings in the event of abnormal fund flow and
transactions.

2.

The audit section of a securities company shall in principle conduct one on-the-spot audit to the operations of the securities business
department every year (or every two years at most, but shall conduct at least one to the securities business departments without
adopting the post-shifting system). The institutions dispatched by the CSRC may require the securities companies to increase the
number of audits according to their legal operations.

3.

A securities company shall submit the issues discovered in auditing securities business departments to the institution dispatched
by the CSRC where the securities business department is located, shall submit the audit reports on all business departments to the
head office of the securities company for archival purposes, and shall, by the end of April of each year, submit the overall audit
information about the securities business departments in the previous year and the main issues found by it to the institution dispatched
by the CSRC where the securities company is located.

4.

The securities company shall combine the audit results with personnel evaluations to establish a corresponding punishment system,
and shall severely punish various illegal acts in violation of the laws and regulations.

V.

Other requirements

1.

A securities company shall establish a fast response mechanism to the serious emergencies arising in a securities business department.
In the case of a serious accident, if a securities business department is unable to do normal transactions because of technological
failure, natural disaster, difficulties to honor the fund or any other reasons, it shall immediately report to the head office of
securities company and the institution dispatched by the CSRC where the securities business department is located and shall report
to the relevant department of the local government. After the accident is completely handled, a report on the handling of the accident
shall be submitted to the aforesaid departments.

2.

The head office of a securities company shall establish a special department to pay regular return visits to the important clients.

3.

A securities business department shall hang its Securities Operating Institution Operation License and Business License in an eye-catching
place. It shall clearly express in the risk disclosure statement and the contract texts given to the investors that it has no right
to sign any business contract with an investor beyond the operation scope of the Securities Operating Institution Operation License,
and the investor shall sign its name for confirmation.

4.

A securities business department shall put the complaint telephone number, fax, e-mail of the head office of the securities company
and other relevant information in an eye-catching place of its business office so that the complaints of the investors can be reflected
and handled in time.

5.

A securities company shall set down specific securities business department internal control system according to its own actual circumstances,
which shall be submitted to the institutions dispatched by the CSRC where the securities company is registered and where the securities
business department is located.

6.

Where the securities operating institutions fail to complete the business separation, they shall carry out by referring to the requirements
of the present Opinions.

7.

With regard to the requirements for the internal control of the securities business departments subordinated to a securities company
with an overall centralized transaction system, the CSRC shall formulate separately.

Before February 29th, 2004, each securities company shall, in light of the present Opinions, make a post-shifting plan and submit
the plan to the institution dispatched by the CSRC where the registration place is located. In case the institution dispatched by
the CSRC where the registration place is located raises no objection upon examination and approves the plan, the securities company
shall, before March 31st, 2004, submit its post-shifting system and plan to the supervision department of the CSRC for archival purposes,
and shall send a copy to the institution dispatched by the CSRC where each of its securities business departments is located. The
Securities companies shall earnestly carry out the post-shifting system and plan.



 
China Securities Regulatory Commission
2003-12-15

 







PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON IMPLEMENTING THE RULES OF ORIGIN FOR THE CHINA-ASEAN FREE TRADE ZONE UNDER THE FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION BETWEEN CHINA AND ASEAN

Customs General Administration

Decree of the Customs General Administration of the People’s Republic of China

No.108

The Provisions of the Customs of the People’s Republic of China on Implementing the Rules of Origin for the China-ASEAN Free Trade
Zone under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN was deliberated and adopted at the
executive meeting of this Administration on December 24th, 3003. It is hereby promulgated and shall be implemented on January 1st,
2004.

Mou Xinsheng, Director of the Customs General Administration

December 30th, 2003

Provisions of the Customs of the People’s Republic of China on Implementing the Rules of Origin for the China-ASEAN Free Trade Zone
under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN

Article 1

With a view to promoting the economic and trade activities between China and ASEAN, and to correctly determining the origin of the
goods imported under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN (hereinafter referred
to as the Agreement), the present Provisions are formulated in accordance with the Customs Law and the Agreement.

Article 2

The present Provisions shall be applied to the goods imported from ASEAN countries under the Agreement (see the Customs Import and
Export Tariff of the People’s Republic of China for details of the list of goods), however, the goods imported by way of processing
trade shall be excluded.

Article 3

The following import goods directly transported from an ASEAN country shall be regarded as goods of ASEAN origin, and the China-ASEAN
conventional tariff shall be applicable:

1)

Products fully obtained or produced in an ASEAN country; and

2)

Products that are not fully obtained or produced but that are consistent with Articles 5 and 6 of the present Provisions.

Article 4

The term “products fully obtained or produced in an ASEAN country” as mentioned in Item 1) of Article 3 of the present Provisions
refers to:

1)

Plants and their products harvested, picked or collected in that ASEAN country;

2)

Live animals borne and bred in that ASEAN country;

3)

Products that are obtained from the animals mentioned in Item 2) of this Article in that ASEAN country and that have undergone no
further processing;

4)

Products obtained from hunting, trapping, fishing, aqua breeding, collecting, or catching in that ASEAN country;

5)

Minerals or other natural materials other than those above-mentioned in Items 1) through 4) that are exploited or extracted from the
territory, territorial waters, seabed, or seabed subsoil of that ASEAN country;

6)

Products that are obtained from the waters, seabed or seabed subsoil outside the territorial waters of that ASEAN country, provided
that the said country has the right to develop the above-mentioned waters, seabed and seabed subsoil pursuant to the provisions of
the international law;

7)

Aquatic and other marine products obtained from the high sea by ships registered with that ASEAN country or hanging the flag of that
country;

8)

Products obtained from processing or manufacturing of the products above-mentioned in Item 7) on the processing ships registered with
that ASEAN country or hanging the flag of that country;

9)

Discarded or waste materials collected in that ASEAN country that can neither be used for their original purpose nor be restored or
repaired, and that are only fit for discarding or recovery of raw materials, or for recycling purpose; and

10)

Products obtained from processing of the products listed above only in Items 1) through 9) in that ASEAN country.

Article 5

The “products that are not fully obtained or produced” as mentioned in Item 2) of Article 3 of the present Provisions shall meet
either of the following conditions:

1)

Products of which the origin is of any ASEAN country and the contents of China-ASEAN Free Trade Zone (hereinafter referred to as the
Free Trade Zone) shall be no less that 40%; or

2)

The total value of the materials, spare parts, or products not originating from the Free Trade Zone shall not exceed 60% of the FOB
price of the products produced or obtained, and the last production operation is finished within an ASEAN country.

Article 6

The term “contents of China-ASEAN Free Trade Zone” as mentioned in Article 5 of the present Provisions is illustrated by the following
formula:

100% – (value of the materials not originating from the Free Trade Zone + value of the materials of unidentified origin) / FOB price
￿￿00%￿￿0%

The “value of the materials not originated in the Free Trade Zone origin or of those of unidentified origin” used in the formula refers
to the CIF price of the materials, or the price, as determined in the first place, paid for the materials of unidentified origin
within the ASEAN country in which the manufacturing or processing is carried out.

Article 7

Unless there are otherwise provisions, where the products of origin of an ASEAN country that meet the requirement of Article 3 of
the present Provisions are manufactured or processed into other products within any ASEAN country, and the accumulated contents from
the member states of the Free Trade Zone in those products are no less than 40%, the origin of those finished products shall be the
ASEAN country in which the manufacturing or processing is carried out, and the China ASEAN conventional tariff shall be applied to
such products.

Article 8

Where the products processed or manufactured in an ASEAN country meet the standards of special origin of products under the Rules
of Origin for the China-ASEAN Free Trade Zone, the processing or manufacturing country shall be the country of origin of those products.
The aforesaid standards are a part of the present Provisions and will be promulgated by the General Administration of Customs (GAC)
separately.

Article 9

The following processing or disposal, no matter whether they are finished separately or conjunctly, shall all be regarded as minor
processing and disposal, and shall be disregarded in determining whether the goods are fully obtained:

1)

Processing or disposal conducted for the transport or storage of the goods to keep them in good conditions;

2)

Processing or disposal conducted for the convenience of the shipping of the goods; and

3)

Processing or disposal, such as packing or display, etc., conducted for the sale of the goods.

Article 10

The term “directly transported” as mentioned in Article 3 of the present Provisions refers to that the goods imported under the Agreement
are transported from an ASEAN country directly to China, or are transported from an ASEAN country to China via any other member state
of the Free Trade Zone, but have not passed any non-member state of the Free Trade Zone on the way.

Where the import goods are transported to China via any non-member state of the Free Trade Zone (including the change of vehicle or
temporary storage) and meet the following conditions simultaneously, they shall be regarded as being directly transported from the
ASEAN country:

1)

Simply due to geographic reasons or transport needs;

2)

Not being traded or consumed when passing through the above-mentioned country; and

3)

Not going through any processing in the above-mentioned country other than such processing that is needed for loading and unloading
and for keeping the goods in good conditions.

Article 11

Where the packages, package materials, and containers, as well as the accessories, spare parts, tools, and introductive materials
shall be declared for import together with the goods, and are categorized together with those goods in the Regulations of Import
and Export Customs Tariff of the People’s Republic of China, they shall be ignored in the determination of the origin of the goods.

Article 12

Unless there are otherwise provisions, the origins of the energy, fuel, plants, equipment, machines, and tools used in the manufacturing
of the products, as well as the origins of the materials that are not contents or components of the products, shall be disregarded
in determining the origin of the products.

Article 13

When declaring of the goods imported under the Agreement, the consignee shall voluntarily declare to the customs that the China-ASEAN
conventional tariff shall be applicable to those goods, and shall submit the certificate of origin (including the original and the
third page) issued by the governmental agency designated by the exporting ASEAN country.

Where the import goods are transported via any non-member state of the Free Trade Zone, apart from complying with the preceding paragraph,
the consignee of the import goods shall also supplement the following documents to the customs:

1)

The through bill of lading issued by the exporting ASEAN country;

2)

Duplicate of the original business invoice of the goods; and

3)

The relevant certificates in conformity with Paragraph 2 of Article 10 hereof.

If the certificate of origin is found, upon check by the customs where the declaration is made, to be consistent with the Procedures
for Issuing and Checking of the Certificate of Origin, and if the contents of the certificate are in conformity with the import goods,
that certificate shall be regarded as valid.

Article 14

If the FOB price of any import goods of the origin of an ASEAN country is less than 200 US dollars, there is no need to submit the
certificate of origin.

Article 15

The certificate of origin of the goods imported from of an ASEAN country shall, within 4 months as of the day of issuing by the relevant
government agency of the ASEAN country, be submitted to the customs within China where the customs declaration is made.

Where the import goods are transported through any non-member state of the Free Trade Zone according to Paragraph 2 of Article 10
of the present Provisions, the time limit for submission of the certificate of origin of those goods will be extended to 6 months.

Where the consignee of the import goods fails to submit the certificate of origin within the above-mentioned time limit because of
force majeure or any other justified reasons, the customs where the declaration is made may accept the certificate upon examination.

Where the import goods have been actually imported within the period prescribed in Paragraphs 1 and 2 of this Article, the time limit
for submission of the certificate of origin may not be restricted by the provisions of Paragraphs 1 and 2.

Article 16

Where the customs where the declaration is made has any doubt over the validity of the contents of the certificate of origin, it may
request the relevant government agency of the ASEAN country to verify the certificate of origin, and the agency receiving the request
shall make a reply within 6 months. During the verification period before any result comes out, the customs where the declaration
is made may release the goods after collecting a cash deposit of the same value as the amount of the taxes payable at the rate applied
to those goods as if not under the Agreement, handle the import formalities and do the customs statistics. After the verification
is finished, the customs where the declaration is made shall, in accordance with the result of the verification, immediately refund
the cash deposit or change the cash deposit into import tariff, and modify the customs statistics data correspondingly.

Where the import goods are those prohibited or restricted by the State from importing, or where any suspect of illegal offence is
involved, the customs may not release the goods before the verification of the certificate of origin is finished.

Article 17

The customs shall keep confidential the materials exchanged with the ASEAN countries for verification of the certificates of origin,
other than the customs import and export trade statistic data.

Article 18

Where, after the goods imported from an ASEAN country are declared for customs clearance but before the customs grants the clearance,
the destination of those goods is changed and the goods need to be transported to another country, the consignee shall file a written
application with the customs.

The customs shall indicate and confirm the change of the destination of the goods on the certificate of origin before returning the
original certificate to the consignee of the import goods and returning the third page of the certificate to the issuing agency.

Article 19

Where the products with the origin of any ASEAN country are transported to another ASEAN country or China for exhibition, and are
sold to China during or after the exhibition, and if the following conditions are met simultaneously, the China-ASEAN conventional
tariff may be applied:

1)

The exporter has transported the products from the exporting ASEAN country to the ASEAN country where the exhibition is held and the
goods have actually been exhibited in that country;

2)

The exporter has transferred the goods to the consignee within China; and

3)

The conditions of the products that are sold into China during or after the exhibition are consistent with their conditions at the
exhibition.

Where the exhibition products meeting the preceding paragraph are declared for import, the consignee shall submit to the customs the
certificate of origin of the exporting ASEAN country, and shall simultaneously provide the certificate specifying the name and address
of the exhibition issued by the relevant government agency of the country where the exhibition is held, as well as the relevant certificates
meeting Paragraph 2 of Article 10 of the present Provisions.

The term “exhibition” as used in this Article shall include the business, agricultural, and handcraft industry exhibitions or trade
fairs especially held for the sale of foreign products, as well as the similar exhibitions or displays held in shops and business
places. The products shall be subject to customs control during the exhibition.

Article 20

The following terms as used in the present Provisions refer to:

1)

The term “ASEAN countries” refers to the other member states signed the Agreement jointly with China, namely Brunei Darussalam, Kingdom
of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Union of Burma, the Republic of the Philippines,
the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Viet Nam.

2)

The term “Materials” shall include constituents, accessories, components, semi-assembled parts, and the products that actually constitute
a part of another product or are used in the production of another product.

3)

The term “Goods of origin” refers to the products that are determined to be in conformity with the conditions for origin in accordance
with Article 3 .

4)

The term “Production” refers to the method of obtaining a product, including planting, exploiting, harvesting, breeding, reproducing,
extracting, collecting, gathering, seizing, fishing, trapping, hunting, manufacturing, producing, processing and assembling.

5)

The term “Plants” refers to all the plants such as fruits, flowers, vegetables, trees, algae, epiphytes, and live plants, etc.

6)

The term “Animals” refers to all the animals such as mammals, birds, fishes, carapaces, mollusks, reptiles, bacteria, and virus, etc.

7)

The term “Discarded or waste materials” refers to the all the discarded and waste machines, packages, and materials, etc., that are
generated in the course of processing, manufacturing and consuming in industrial, mining, agricultural, construction, smelting, and
sewage disposal industries.

8)

The term “Standards of the special origin of products” refers to the rules of change of tax code of the prescribed materials, specific
processing or manufacturing operation of those materials, satisfaction of a certain standard of ad valorem percentage, or a combination
of the above-mentioned standards.

Article 21

The customs shall deal with any act in violation of the present Provisions in accordance with the Customs Law of the People’s Republic
of China and the Detailed Rules for the Implementation of the Administrative Punishment for the Customs Law of the People’s Republic
of China. If a crime has been constituted, the offender shall be subject to criminal liabilities according to law.

Article 22

The responsibility to interpret the present Provisions shall remain with the Customs General Administration.

Article 23

The present Provisions shall be implemented as of January 1st, 2004.



 
Customs General Administration
2003-12-30

 







PROMOTION OF CLEANER PRODUCTION LAW

Law of the People’s Republic of China on Promotion of Cleaner Production

(Adopted at the 28th Meeting of the Standing Committee of the Ninth National People’s Congress on June 29, 2002 and
promulgated by Order No. 72 of the President of the People’s Republic of China on June 29, 2002) 

Contents 

Chapter I    General Provisions 

Chapter II   Popularization of Cleaner Production 

Chapter III  Implementation of Cleaner Production 

Chapter IV   Incentive Measures 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of promoting cleaner production, increasing the utilization ratio of resources,
reducing and preventing pollutant-generating, protecting and improving the environment, protecting human health, and promoting the
sustainable development of the economy and society. 

Article 2  For purposes of this Law, cleaner production means, by continuous adopting measures to improve designing, use cleaner
energy and raw materials, introduce advanced techniques and equipment, improve management and make comprehensive use of resources
as well as other measures, to reduce pollution from its source, increase the utilization ratio of resources, reduce or prevent the
generation and discharge of pollutants in the course of production, services and use of products, in order to alleviate or eliminate
harm to human health and the environment. 

Article 3  Within the territory of the People’s Republic of China, units engaged in production and service activities and the
departments engaged in administration of such activities shall, in accordance with the provisions of this Law, organize efforts to
implement cleaner production. 

Article 4  The State encourages and promotes cleaner production. The State Council and the local people’s governments at or
above the county level shall incorporate cleaner production into their plans for national economic and social development and plans
for environment protection, recourses utilization, industrial development, regional development, etc. 

Article 5  The administrative department for the economy and trade under the State Council shall be responsible for organizing
efforts to coordinate the work of promoting cleaner production nationwide. The administrative departments under the State Council
for environment protection, planning, science and technology, agriculture, construction, water resources and technical supervision
over quality shall, within their respective functions and responsibilities, be responsible for the relevant work of promoting cleaner
production. 

The local people’s governments at or above the county level shall be responsible for directing the work of promoting cleaner production
within their own administration areas. The administrative departments for the economy and trade under the said people’s governments
shall be responsible for organizing efforts to coordinate the work of promoting cleaner production within their own administrative
areas. The administrative departments under the said people’s governments for environment protection, planning, science and technology,
agriculture, construction, water resources and technical supervision over quality shall, within their respective functions and responsibilities,
be responsible for the relevant work of promoting cleaner production. 

Article 6  The State encourages scientific research, technological development and international cooperation in the field of
cleaner production, organizes efforts to disseminate knowledge about cleaner production and spreads the use of technologies for cleaner
production. 

The State encourages public organizations and the general public to participate in the promotion of, education in, popularization
and implementation of and supervision over cleaner production. 

Chapter II 

Popularization of Cleaner Production 

Article 7  The State Council shall formulate financial and taxation policies for the benefit of implementation of cleaner production. 

The State Council, the relevant administrative departments under it and the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government shall formulate industrial policies and policies for technological development
and popularization for the benefit of implementation of cleaner production. 

Article 8  The administrative departments for the economy and trade under the local people’s governments at or above the county
level shall, together with the relevant administrative departments for environment protection, planning, science and technology,
agriculture, construction, water resources, etc., formulate plans for popularization of cleaner production. 

Article 9  The local people’s governments at or above the county level shall make rational plans for the economic layout within
their own administrative areas, readjust industrial structures, develop cycling economic sectors and promote cooperation among enterprises
in the comprehensive use of recourses and waste materials and in other fields, in order to realize highly effective use and recycling
of resources. 

Article 10  The administrative departments for the economy and trade, environment protection, planning, science and technology,
agriculture and other relevant administrative departments under the State Council and under the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government shall organize efforts to support the establishment of
an information system for cleaner production and a system for technical consultancy, in order to provide information and services
in respect of the methods and technologies for cleaner production, supply and demand of recyclable waste, policies for cleaner production,
etc.  

Article 11  The administrative department for the economy and trade under the State Council shall, together with the related
administrative departments under the State Council, regularly publish directories on technologies, techniques, equipment and products
for cleaner production. 

The administrative departments for the economy and trade, environment protection, agriculture and construction and other departments
concerned under the State Council and under the people’s governments of provinces, autonomous regions and municipalities directly
under the Central Government shall organize efforts to compile guidebooks and technical manuals for cleaner production in respect
of certain trades or regions, for the purpose of guiding the implementation of cleaner production.  

Article12  With respect to out-dated production technologies, techniques, equipment and products which cause waste of recourses
and serious pollution of the environment, the State applies a system of elimination within a time limit. The administrative department
for the economy and trade under the State Council shall, together with the other related administrative departments under the State
Council, compile and publish catalogues of technologies, techniques, equipment and products to be eliminated within a time limit. 

Article 13  The relevant administrative departments under the State Council may, where necessary, grant approval to marks for
products made for the benefit of environment and resources protection, such as energy- or water-conservation products and products
made out of recycled waste, and they shall lay down corresponding standards according to State regulations.  

Article 14  The administrative departments for science and technology and other relevant administrative departments under the
local people’s governments at or above the county level shall provide guidance to and support research in and development of technologies
for cleaner production and products conducive to protection of the environment and resources and the demonstration and wide use of
technologies for cleaner production. 

Article 15  The administrative department for education under the State Council shall incorporate the courses of cleaner production
technology and management into the related systems of higher education, vocational education and technical training. 

The relevant administrative departments under the local people’s governments at or above the county level shall organize efforts
to disseminate knowledge about cleaner production and conduct training in this area, in order to enhance the awareness of the importance
of cleaner production among government functionaries, enterprise managers and the general public and train managerial and technical
personnel for cleaner production.  

The press, publishing, radio, films, television and cultural institutions and relevant public organizations shall give play to their
own advantages and make a success of promotion for cleaner production.   

Article 16  People’s governments at various levels shall give first priority to purchasing energy- and water-conservation products
and products made out of recycled waste which are conducive to protection of the environment and resources. 

People’s governments at various levels shall, through promotion and education or by other means, encourage the general public to
purchase and use energy- and water-conservation products and products made out of recycled waste which are conducive to protection
of the environment and resources. 

Article 17  The administrative departments for environment protection under the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government shall exercise strict supervision over the implementation of cleaner
production and they may, in light of the need to promote cleaner production and the discharge of pollutants by enterprises, regularly
publish, through the principal local media, name lists of the enterprises which cause serious pollution by exceeding the norms specified
for the pollutants discharged or for the total amount of the pollutants discharged, providing the basis for public supervision over
the enterprises’ implementation of cleaner production. 

Chapter III 

Implementation of Cleaner Production 

Article 18  For new construction, reconstruction and expansion projects, their impact on the environment shall be assessed,
the use of raw materials, consumption and comprehensive use of resources, generation and disposition of pollutants shall be analysed
and expounded and employment of technologies, techniques and equipment for cleaner production, which serve to make highly effective
use of resources and generate less pollutants, shall be given first priority. 

Article 19  In the course of technological updating, enterprises shall adopt the following measures for cleaner production: 

(1) replacing highly toxic and harmful raw materials with nontoxic and harmless or less toxic and harmful ones; 

(2) replacing techniques and equipment which serve to make less effective use of resources to generate greater amount of pollutants
with ones which serve to make highly effective use of resources and generate pollutants;  

(3) making comprehensive or cycle use of solid waste and waste water and heat discharged in the course of production; and 

(4) adopting technologies for prevention and control of pollution which help keep the pollutants discharged and within the norms
specified by the State or local authorities and keep the total amount of the pollutants discharged within the control norms specified
by the State or local authorities.  

Article 20  In the designing of products and packages, consideration shall be given to their effects on human health and the
environment during their life cycles, and priority shall be given to options for products and packages that are toxicant-free, harmless,
easily dissolved or recycled.  

Enterprises shall properly pack their products, refraining from overusing the packages and preventing the generation of package waste. 

Article 21  Enterprises producing large mechanical and electrical equipment, motor-driven means of transport and other products
designated by the administrative department for the economy and trade under the State Council shall, in adherence to the technical
specifications laid down by the administrative department for standardization under the State Council or the institutions authorized
by the department, indicate the standard brand of the material composition on the principal component parts of the product.  

Article 22  Agricultural producers shall use chemical fertilizers, pesticides, agricultural film and feed additives in a scientific
way and improve planting and breeding technologies, so as to produce quality and harmless agricultural products, turn agricultural
waste into resources, and prevent the agricultural environment from pollution. 

Toxic and harmful waste is prohibited to be used as fertilizers or for cultivating new farmland. 

Article 23  Service enterprises providing food and drinks, entertainment or hotel services shall use energy- and water-conservation
and other technologies and equipment conducive to environment protection and shall refrain from using or use less consumer goods
which lead to waste of resources and pollution of the environment.   

Article 24  For construction projects, the designing, construction and decoration materials, construction component and accessory
parts and equipment, which are energy- and water-conserving and conducive to environment protection, shall be adopted or used. 

Construction and decoration materials shall conform to the norms of the State. Production, marketing and use of such materials, the
toxic and harmful substances which contain exceed State norms, are prohibited. 

Article 25  In prospecting and exploiting mineral resources, the methods, techniques and technologies which are conducive to
rational use of resources, environment protection and prevention of pollution shall be adopted for better use of resources. 

Article 26  Enterprises shall, where feasible in financial and technological terms, retrieve wastes and waste heat discharged
in the course of production and services, or transfer them to other enterprises or individuals that have the ability of using them. 

Article 27  Enterprises producing and marketing products or packages included in the catalogue of products or packages for compulsory
recycling shall recycle the scrapped products and used packages. The catalogue of products and packages for compulsory recycling
and the specific measures for compulsory recycling shall be compiled and formulated by the administrative department for the economy
and trade under the State Council. 

With regard to the products and packages listed in the catalogue of products and packages for compulsory recycling, the State adopts
economic measures favorable to their recycling; the administrative departments for the economy and trade under the local people’s
governments at or above the county level shall regularly inspect the recycling of such products and packages and make the result
of inspection known to the public. The specific measures shall be formulated by the administrative department for the economy and
trade under the State Council. 

Article 28  Enterprises shall monitor the consumption of resources and discharge of waste in the course of production and services
and, where necessary, examine whether their production and services conform to the requirements of cleaner production. 

Enterprises that discharge pollutants in excess of the norms specified by the State or local authorities or of the control norms
for the total amount of pollutants discharged approved by the local people’s governments concerned shall conduct examination for
cleaner production. 

Enterprises that use toxic or harmful raw materials in production or discharge toxic or harmful substances in the course of production
shall conduct regular examination for cleaner production and report the results to the administrative departments for environment
protection and for the economy and trade under the local people’s governments at or above the county level where the enterprises
are located. 

The measures for examination for cleaner production shall be formulated by the administrative department for the economy and trade
under the State Council, together with the administrative department for environment protection under the State Council. 

Article 29  Enterprises that have succeeded in keeping the pollutants they discharge within the norms specified by the State
and the local authorities of their own free will, sign agreements on further conservation of resources and reduced amount of pollutants
discharged with the administrative departments for the economy and trade and for environment protection, which have jurisdiction
over them. The said departments shall, through the principal local media, make public the names of the enterprises and their achievements
in conserving resources and preventing and controlling pollution. 

Article 30  Enterprises may, on the principle of voluntariness and in accordance with the State regulations on verification
by environment management system, apply for verification to the verification authority authorized by the government department for
supervision and control over verification and approval and go through the verification for environment management, so as to raise
their level of cleaner production.  

Article 31  According to the provisions in Article 17 of this Law, enterprises included in the name list of the enterprises
which cause serious pollution shall, in compliance with the regulations of the administrative department for environment protection
under the State Council, make public their discharge of the main pollutants to accept public supervision. 

Chapter IV 

Incentive Measures 

Article 32  The State establishes a commending and awarding system for cleaner production. The people’s governments shall commend
and award units and individuals that achieve remarkable successes in their efforts to bring about cleaner production. 

Article 33  Projects designed for research, demonstration and training in cleaner production, key technological updating projects
of the State for cleaner production, and other technological updating projects clearly stated in the agreements on voluntary reduction
of pollutants discharged, as prescribed in Article 29 of this Law, shall be included in the projects for which special funds are
arranged by the State Council and the finance department at the same level as the local people’s government at or above the county
level in support of their technological updating. 

Article 34  From the funds established for developing small and medium-sized enterprises in accordance with State regulations,
an appropriate amount shall, where necessary, be set aside to support such enterprises in their efforts to engage in cleaner production.
 

Article 35  Where enterprises manufacture products out of waste and obtain raw materials out of recycled waste, the taxation
authority shall, in accordance with relevant State regulations, reduce their value-added tax or exempt them from such tax. 

Article 36  Enterprises may incorporate into their operational cost the fees paid for examination and verification regarding
cleaner production and for training in this respect. 

Chapter V 

Legal Responsibility 

Article 37  Where an enterprise that, in violation of the provisions in Article 21 of this Law, fails to indicate the composition
of product materials or indicates the said composition untruthfully, the administrative department for quality and technical supervision
under the local people’s government at or above the county level shall instruct it to rectify within a time limit; if it refuses
to do so, it shall be fined not more than RMB 50,000 yuan. 

Article 38  Where an enterprise, in violation of the provisions in the second paragraph of Article 24 of this Law, produces
or markets construction and decoration materials, the toxic or harmful substances which contain exceed State norms, it shall be investigated
for administrative, civil or criminal responsibility in accordance with the provisions in the law on product quality and the relevant
civil and criminal laws. 

Article 39  Where an enterprise, in violation of the provisions in the first paragraph of Article 27 of this Law, fails to fulfill
the obligation of recycling scrapped products or used packages, the administrative department for the economy and trade under the
local people’s government at or above the county level shall instruct it to rectify within a time limit; if it refuses to do so,
it shall be fined not more than 10,000 yuan. 

Article 40  Where an enterprise, in violation of the provisions in the third paragraph of Article 28 of this Law, fails to conduct
examination for cleaner production, or to provide truthful report on the result of the examination which it conducts, the administrative
department for environment protection under the local people’s government at or above the county level shall instruct it to rectify
within a time limit, if it refuses to do so, it shall be fined not more than 10,000 yuan. 

Article 41  Where an enterprise, in violation of the provisions in Article 31 of this Law, fails to make public its discharge
of pollutants or fails to do so in compliance with the requirements specified, its discharge shall be made public by the administrative
department for environment protection under the local people’s government at or above the county level, and it may also be fined
not more than 10,000 yuan. 

Chapter VI 

Supplementary Provisions 

Article 42  This Law shall go into effect as of January 1, 2003.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







INTERIM MEASURES ON THE MANAGEMENT OF FOREIGN DEBTS

The State Development Planning Commission, the Ministry of Finance, the State Administration of Foreign Exchange

Decree of the State Development Planning Commission, the Ministry of Finance, and State Administration of Foreign Exchange

No.28

The Interim Measures on the Management of Foreign Debts which are enacted with a view to regulating the act of raising foreign debts,
bringing more benefits from the use of foreign debt funds, and avoiding the risk of foreign debts, and are hereby promulgated and
shall come into effect as of March 1, 2003.

Director of the State Development Planning Commission Zeng Peiyan

Minister of the Ministry of Finance Xiang Huaicheng

Director of the State Administration of Foreign Exchange Guo shuqing

January 8, 2003

Interim Measures on the Management of Foreign Debts

Chapter I General Provisions

Article 1

The present Measures are enacted with a view to regulating the act of raising foreign debts, bringing more benefits from the use foreign
debt funds, and avoiding the risk of foreign debts.

Article 2

The term “foreign debt” as mentioned in the present Measures refers to the debts owed by domestic institutions to non-residents in
the form of foreign currency.

Article 3

“Domestic institutions” as mentioned in the present Measures refers to the permanent bodies established according to law in the territory
of China, including but not limited to the governmental organs, domestic financial institutions, enterprises, institutions and social
organizations.

Article 4

“Nonresidents” as mentioned in the present Measures refer to the institutions and natural persons abroad, and the nonpermanent institutions
established according to law in the territory of China.

Article 5

In accordance with the classification of the debts, foreign debts shall be divided into loans offered by foreign governments, loans
offered by the international financial organizations and international commercial loans.

1.

Loans offered by the foreign governments refer to the official credit raised by the Chinese government from foreign governments;

2.

Loans offered by the international financial organizations refer to the noncommercial credit which the Chinese government owes to
the World Bank, Asia Development Bank, Agricultural Development Funds of the United Nations and other international or regional financial
organizations; and

3.

International commercial loans refer to the commercial credit which the domestic institutions owe to the nonresidents, including:

(1)

loans raised from overseas banks or other financial organizations;

(2)

loans borrowed from overseas enterprises, or other financial organizations and natural persons;

(3)

medium-term or long-term bonds (including convertible bonds) issued by foreign banks or short-term bonds (including commercial negotiable
instruments, and large amount transferable deposit receipts);

(4)

the buyers’ credit, deferred payment and trade finance in other forms;

(5)

international financial leases;

(6)

foreign currency deposits of nonresidents;

(7)

debts repaid in cash in compensation trade; and

(8)

international loans of other categories.

Article 6

According to the responsibility for the repayment, foreign debts may be divided into sovereign debts and non-sovereign debts.

1.

The sovereign debts refer to the foreign debts borrowed by the institutions authorized by the State Council in the name of the state
and guaranteed with the state credit for the repayment; whereas

2.

The non-sovereign debts refer to other foreign debts except as of the sovereign debts.

Article 7

“Foreign guaranty” mentioned in the present Measures refers to the guaranty provided by the domestic institutions for the nonresidents
in accordance with the Guaranty Law of the People’s Republic China through means of surety, mortgage, and pledge. Potential obligations
for the repayment of the foreign debts resulting from the foreign guaranty shall be regarded as feasible foreign debts.

Article 8

The State shall conduct an overall control over all of the foreign debts and feasible foreign debts. The borrowing of foreign debts,
guaranty for foreign debts, and the usage and repayment of foreign debts shall comply with the provisions of relevant laws, rules
and regulations of the State and comply with the present Measures.

Article 9

The State Development Planning Commission, Ministry of Finance, and State Administration of Foreign Exchange are the departments responsible
for the administration of foreign debts.

Chapter II Raising of Foreign Debts and Foreign Guaranty

Article 10

According to the need of the national economy and social development, and the conditions of the international income and expenses
and capacity of bearing foreign debts, the State Development Planning Commission shall, jointly with other relevant departments,
draw up the State’s plan for the borrowing of foreign loans, and rationally determine the overall amount of foreign debts and the
standards of their structural adjustment and control.

Article 11

The State shall, in compliance with the category of foreign debts, liability for repayment, and the nature of the borrowers, effect
separate management on foreign debts.

Article 12

Loans provided by international financial organizations or foreign governments shall be borrowed by the State in a consolidated way.

The State Development Planning Commission shall, jointly with other relevant departments like the Ministry of Finance, make overall
plans for loan projects to be chosen provided by the World Bank, Asia Developing Bank, Agricultural Development Funds of the United
Nations, and foreign governments; the Ministry of Finance shall, in accordance with the overall plans, organize the foreign negotiation,
consultation and conclusion of loan agreements, and the direct relending or relending through the relevant financial institutions
to the domestic debtors. The plans for the loan projects to be chosen provided by the World Bank, Asia Developing Bank, Agricultural
Development Funds of the United Nations, and some key foreign governments shall undergo approval by the State Council.

Article 13

Where the Ministry of Finance, in the name of the State, issues bonds abroad, the Ministry shall report to the State Council for approval,
which shall be included in the plans of foreign loans. Medium-term or long-term bonds issued by any other domestic institutions abroad
shall be subject to examination and verification by the State Development Planning Commission and Ministry of Finance, which shall
report the bonds to the State Council for approval.; short-term bonds issued abroad shall be subject to examination and approval
by the State Administration of Foreign Exchange; where the issue of short-term bonds is scrolled, the issue shall be subject to the
joint approval by the State Administration of Foreign Exchange and State Development Planning Commission and Ministry of Finance.

Article 14

With regard to the medium-term or long-term international commercial loans which national commercial banks raise, the State shall
enforce a balance control; the balance shall be subject to the examination and verification of the State Development Planning Commission
and other relevant departments, and then shall be reported to the State Council for examination and approval.

Article 15

Long-term or middle-term international commercial loans borrowed by domestic institutions such as enterprises with Chinese capital
shall be subject to approval by the State Development Planning Commission.

Article 16

With regard to the short-term international commercial loans which domestic institutions with Chinese capital raise, the State shall
exert a balance control; the balance be subject to examination and approval by the State Administration of Foreign Exchange.

Article 17

With regard to the foreign debts raised by foreign-capital financial institutions within China, the State shall enforce an administration
on the total amount. Measures on the administration shall be separately enacted.

Article 18

The summation of the accumulated medium-term and long-term debts borrowed by enterprises with foreign investment and the balance of
short-term debts shall not exceed the surplus between the total investment in projects approved by the verifying departments and
the registered capital.

Within the range of the surplus enterprises with foreign investment may borrow foreign loans at their own will. If the loans exceed
the surplus, the total investment in projects shall be reexamined by the original examination and approval departments.

Article 19

Foreign guaranty provided by domestic institutions for foreign debts shall be in compliance with the State’s laws, rules and regulations
and the relevant provisions of the State Administration of Foreign Exchange.

Article 20

Domestic institutions shall not provide guaranty for non-business external organizations.

Article 21

Without approval of the State Council, no governmental organs, social organizations or institutions shall raise foreign loans or provide
foreign guaranty.

Article 22

After a domestic institution has concluded a contract for foreign loans or providing foreign guaranty, it shall, in accordance with
relevant provisions, apply to the foreign exchange administration departments for registration. Contracts for international commercial
loans or contracts for the corresponding guaranty shall not enter into force until they are registered.

Chapter III Use of the Foreign Debt Capital

Article 23

Foreign debt funds shall be used in the economic development and structural adjustment of the stored foreign debts.

Article 24

Favorable foreign medium-term or long-term loans such as loans provided by the international financial organizations or foreign governments
shall be mainly used in the infrastructure and construction projects for public welfare, with preference to the western part of China.

Article 25

Medium-term or long-term international commercial loans shall be mainly used for introduction of advanced technology and equipment,
and for the adjustment of the structure of industries and structure of foreign debts.

Article 26

Medium-term or long-term foreign debt capital borrowed by domestic institutions shall, strictly according to the approved purposes,
be rationally used, and shall not be diverted for other purposes. Any necessary change of the purposes of use shall be subject to
approval through the original procedures.

Article 27

Short-term debts borrowed by domestic enterprises shall be mainly used as circulating funds, which shall not be used for medium-term
or long-term purposes such as in fixed assets.

Article 28

Where investment projects of fixed assets are funded with foreign debt capital, legal person responsibility system of a key project
shall be practiced so as to make the legal persons of the project responsible for the benefit of the use of the foreign debt capital.

If, in accordance with the Law of the People’s Republic of China on Bid Invitation and Bidding and the relevant provisions prescribed
by foreign organizations which lend the money, any purchase must be conducted through bid invitation; the bid invitation shall be
handled in strict accordance to the relevant provisions.

Article 29

Foreign debts regulatory departments shall be responsible for the administration and supervision of the use of foreign debt capital.

Article 30

The State Development Planning Commission shall, in accordance with the provisions of the Regulations on the Check of the Important
National Construction Projects, shall send specials to key national construction projects which are funded with foreign debt capital,
and shall perform inspection on the implementation of the projects and usage of the debts.

Chapter IV Repayment of Foreign Debts and Management of Risk

Article 31

Sovereign foreign debts shall be repaid by the State uniformly. If the sovereign foreign debt capital is relent to domestic debtors
directly by the Ministry of Finance or through financial institutions, the domestic debtors shall be liable for repayment of the
debts to the Ministry of Finance or to the financial institutions which handle the relending.

Article 32

Non-sovereign foreign debts shall be subject to the responsibility of the debtors themselves for risk and repayment.

Article 33

Debtors may fulfill the repayment of the debts with the foreign exchanges which they possess, or upon verification and approval by
foreign exchange regulatory departments, with foreign exchanges purchased with Renminbi.

Article 34

With respect to the debts which a debtor fails to repay, if there is a surety, the surety shall be responsible for the repayment of
the debts.

Article 35

If the surety needs, pursuant to the provisions of the contract for surety, to perform the obligation of repayment of the debts for
the debtor, the surety shall apply to the foreign exchange regulatory departments for verification for the performance of the contract
for surety.

Article 36

Debtors shall reinforce the management on the risk of foreign debts, and adjust and optimize the debt structure.

On the premise that the range of the original debts is not enlarged, debtors may, upon examination and approval of the State Development
Planning Commission, reduce the cost of foreign debts and optimize the their structure by means of repayment of foreign debts at
a higher cost with foreign debts borrowed at a lower cost. Therein, if the sovereign foreign debts are concerned, examination and
approval by the Ministry of Finance shall be needed.

Article 37

Debtors may, for the purpose of evasion of risk, entrust competent financial institutions to use financial tools to evade the exchange
rate risk and interest rate risk of the foreign debts.

Chapter V Supervision and Administration on Foreign Debts

Article 38

Foreign debt regulatory departments shall, pursuant to the laws, rules and regulations, and the relevant provisions of the present
Measures, conduct supervision and administration on foreign debts and foreign guaranty.

Article 39

When the foreign debt regulatory departments perform duties and responsibilities of supervision and administration, they are enpost_titled
to demand the debtors and relevant units to offer information concerned, check the bills and capital.

Article 40

If a domestic institution fails to perform the procedures of examination and approval or to fulfill the registration according to
the relevant provisions when it raises foreign debts or provides foreign guaranty, the contracts for loans or guaranty which it concludes
shall not be legally binding.

Article 41

Foreign debts or guaranty, which are not embodied in the form of contracts for foreign debts or guaranty, but actually constitute
obligations or potential obligations of repayment of foreign debts, shall be subject to the supervision and administration on foreign
debts according to the present Measures.

Article 42

Violation of the principle of pooling of interest and joint assumption of risk shall be forbidden so as to ensure that the direct
foreign investors will not raise foreign debts disguisedly by means of fixed return.

Article 43

Without approval by the foreign debts regulatory departments, overseas enterprises with Chinese capital shall not transfer the risk
of their foreign debts or obligations of repayment to domestic enterprises.

Article 44

If financial institutions operating foreign exchange business find any act that violates the present Measures in the course of opening
foreign exchange and foreign debts accounts, and handling the business of foreign exchange, they shall timely submit report to the
foreign debts regulatory departments concerned, and shall cooperate with the regulatory departments to carry out investigations.

Article 45

The foreign debt regulatory departments shall pay strict attention to the trends of the foreign debts, establish and perfect an overall
early warning system.

Article 46

The State Administration of Foreign Exchange shall be responsible for the monitoring of foreign debts through statistics, and regularly
publicize the statistical data of the foreign debts.

Article 47

If any domestic institution, in violation of the present Measures, raises foreign debts or provides foreign guaranty, its competent
department shall impose administrative sanction on the persons directly in charge or the other persons directly responsible. If the
offense constitutes a crime, criminal liability shall be pursued according to law.

Article 48

If a staff member of the foreign debt regulatory department engages in malpractices for personal gain, abuses his power or neglect
his duty, the department for which he works shall impose an administrative sanction on him. If the offense constitutes a crime, the
offender shall be subject to criminal liabilities.

Chapter VI Supplementary Provisions

Article 49

Loans raised by domestic institutions from the Special Administrative Regions of Hongkong and Macau, and from the Region of Taiwain
and guaranty provided for them, shall be subject to administration with reference to the present Measures.

Article 50

Foreign debts regulatory departments shall, according to the present Measures, enact and perfect the relevant regulations for the
implementation of the present Measures.

Article 51

The present Measures shall be subject to interpretation of the State Development Planning Commission, Ministry of Finance, and State
Administration of Foreign Exchange.

Article 52

The present Measures shall enter into force as of March 1, 2003.



 
The State Development Planning Commission, the Ministry of Finance, the State Administration of Foreign Exchange
2003-01-08

 







CIRCULAR OF THE SPC ON THE STRINGENT ENFORCEMENT OF REGULATIONS FOR PUNISHMENT IN THE JUDGES LAW

Circular of the SPC on the Stringent Enforcement of Regulations for Punishment in the “Judges’ Law of the PRC

     post_title of Laws, Regulations, or Judiciary Interpretation: Circular of the Supreme People’s Court on the Stringent Enforcement of Regulations
for Punishment in the “Judges’ Law of the People’s Republic of China”

Promulgating Organ: The Supreme People’s Court

Date of Promulgation: February 27, 2003

Date of Implementation: February 27, 2003

Applicable Scope: Activities to carry out the “Judges’ Law of the People’s Republic of China”

Major Contents: This circular stipulates the necessity of fully understanding the solemn disciplines, while emphasizing that all
judges are required to practically improve disciplinary consciousness, and to use strict and impartial law and discipline to restrict
and regulate their functions and conduct. This circular also supervises towards healthy inspection and supervision system to firmly
grab hold for practicality, reinforce leadership responsibility system, supervise one level after another, and seriously investigate
and punish relevant issues such as cases in violation of the law and discipline, and the scope of application of this circular.

Appendix: Articles on reprimanding of the “Judges’ Law of the People’s Republic of China”

    






INTERIM MEASURES FOR ADMINISTRATION OF ASSOCIATIONS OF ENTERPRISES FUNDED BY TAIWAN COMPATRIOTS

Taiwan Affairs Office of the State Council, The Ministry of Civil Affairs

Notice of Taiwan Affairs Office of the State Council and the Ministry of Civil Affairs Concerning Printing and Issuing Interim Measures
for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Taiwan affairs office and the ministry of civil affairs of every province, autonomous region and municipality directly under the Central
Government, Taiwan affairs office and the ministry of civil affairs of every city specifically designated in the state plan:

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots are hereby printing and issuing, please
carry out.

Taiwan Affairs Office of the State Council

The Ministry of Civil Affairs

March 20,2003

Interim Measures for Administration of Associations of Enterprises Funded by Taiwan Compatriots

Article 1

These measures are formulated for the purpose of guaranteeing the legal rights and interests of the Associations of Enterprises Funded
by Taiwan Compatriots (hereinafter referred as to AETCs), accelerating economic communications and cooperation between the Mainland
and Taiwan and normalizing the administration, according to the Law of the People’s Republic of China on Protection of the Investments
of Taiwan Compatriots as well as the Administrative Regulations of Associations Registration.

Article 2

AETCs refer to the associations legally established voluntarily which principal members are the enterprises funded by Taiwan compatriots
(hereinafter referred as to ETC) and registered in the Mainland China.

Article 3

AETCs shall abide by the State’s constitutions, laws and regulations and shall not endanger reunification of the country, security
of the State and solidarity of the nations, and shall not impair the State’s interests, public interests or citizen legal rights
and interests.

Article 4

The State protects the legal rights and interests of AETCs and their members as well as legal activities according to their corporate
charters.

Article 5

AETCs take a purpose of serving their members and accelerating the communications and cooperation between the Mainland and Taiwan.
Their key operations include:

(1)

Developing association and communication activities;

(2)

Providing the members with consulting services on State’ laws and regulations and economic information;

(3)

Communicating between the members and local governments and relevant administrative organs, reporting opinions, suggestions and demands
on production and operation from the members, and maintaining the legal rights and interests of the members.

(4)

Accelerating the economic communications and cooperation between the local economies and Taiwan Region.

(5)

Hosting social and commonweal activities;

(6)

Helping the members to solve the problems met in the work and life.

Article 6

The Taiwan Affairs Office of the State Council and relevant Taiwan affairs offices of local peoples’ governments are the supervising
organs for the operations of AETCs. The relevant Taiwan affairs offices of local peoples’ governments and civil affairs administrations
are responsible for directing the operations of AETCs and administrating their registration affairs.

Article 7

The members of AETCs are divided into entity ones (as the principal body) and individual ones.

An entity member is an ETC joining the AETC in the name of its business name, which is registered locally.

An individual member is a Taiwan compatriot joining the local AETC in the name of himself, which business is registered locally, as
well as a person who provides services to the AETC in a proper name.

Article 8

The following requirements shall be met with for establishing an AETC:

(1)

In a region where there mass ETCs;

(2)

Over 50 founder members including no less than 30 entity members;

(3)

A fixed operation site;

(4)

Full-time staff suitable for developing operation activities;

(5)

Legal fund sources.

(6)

Other requirements stipulated in the laws, regulations, and rules.

Article 9

Any establishment of an AETC shall be examined and approved by the competent administration registered according to relative regulations
and reported to and recorded by the Taiwan Affairs Office of the State Council.

Article 10

Local Taiwan affairs offices shall fulfill their responsibilities as competent administrations and provide services and assistances
to AETCs.

(1)

Directing the activities performed by AETCs’ according to laws;

(2)

Assisting AETCs in communicating with local governments and relevant administrations;

(3)

Assisting AETCs in organizing activities related to major economic exchanging and major conferences.

(4)

Assisting AETCs in organizing trainings on laws and economic operations;

(5)

Providing assistance to the commonweal activities hosted by AETCs;

(6)

Providing assistance in solving problems met by AETCs in their operations and difficulties met by their members in their production
and life; and

(7)

Providing other necessary assistances.

Article 11

The chairman of an AETC shall be assumed by a Taiwan businessman. Any chairman and vice-chairman shall meet with following requirements:

(1)

Abiding by the principle of one China, upholding the reunification of the country, and actively and willingly striving for accelerating
the economic communications and cooperation;

(2)

A Taiwan businessman with competitive capability in economy and his business shall have a certain large scale.

(3)

A Taiwan businessman with good personal quality, who enjoys a prestige among local Taiwan businessmen.

(4)

Enthusiastic about the work of the association, with strong working capability.

(5)

Good in health, capable of routine job.

(6)

Not a legal representative of any other association; and

(7)

With full capacity for civil conduct.

Article 12

In order for AETC to communicate with the administration of government easily and provide better services for the members, the responsible
person of the Taiwan affairs office of the local people’s government may accept the invitation from the AETC to hold a proper post
in the AETC. The person to be engaged for a post in the AETC shall be selected according to the procedures of the constitutions of
the AETC and shall not take any pay from the AETC?￿￿>

Article 13

The employment of common staff by an AETC shall be accordance with relevant regulations of the State.

Article 14

For receptions of visits of key visiting groups or persons from Taiwan, the AETC shall report to the local competent administration
beforehand for record.

Major activities to be hosted by an AETC including establishment, expiration of office terms and celebration shall be reported to
the competent administration for approval.

Any Tran regional activities to be hosted by an AETC shall be reported to the competent administration for reporting to its upper
level administration for approval.

Article 15

No AETC shall join a foreign chamber of commerce or an overseas association.

An AETC shall operate according to its constitution independently without any subjection relationship with any other organization,
and shall not accept any consign from any other organization or individual to pursue any activity incompliant with its constitution.

Article 16

Any receipt of member fees, donations or financial assistances shall be accordance with the tenet and business scope specified in
its constitution. The receipt and use of such member fees, donations or financial assistances shall be reported to the competent
administration and registration administration authority and shall be publicized in a proper way.

Article 17

The competent administration and registration administration authority shall grant commends to the AETCs with excellent performances
during their legal operations.

Article 18

For an AETC established prior to the enforcement of these Measures, any incompliance with these Measure shall be corrected within
six months since the enforcement of these Measures according to relative regulations in these Measures.

Article 19

Any circumstance that have not mentioned in these Measures shall be dealt with according to the Administrative Regulations of Associations
Registration as well as relevant regulations of the State.

Article 20

The Taiwan Affairs Office of the State Council is responsible for the interpretation of these Measures.

Article 21

These Measures shall enter into force as of April 20, 2003.



 
Taiwan Affairs Office of the State Council, The Ministry of Civil Affairs
2003-03-20

 







PROVISIONS FOR IDENTIFICATION AND PROTECTION OF WELL-KNOWN TRADEMARKS

The State Administration for Industry and Commerce

Decree of the State Administration for Industry and Commerce of the People’s Republic of China

No.5

The Provisions for Identification and Protection of Well-Known Trademarks, adopted at executive meeting of the State Administration
for Industry and Commerce, is hereby promulgated, and shall enter into force as of June 1, 2003.

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

April 17, 2003

Provisions for Identification and Protection of Well-known Trademarks

Article 1

The present Provisions are formulated in accordance with the Trademark Law of the People’s Republic of China (hereinafter referred
to as the Trademark Law) and the Rules on Implementing the Trademark Law of the People’s Republic of China (hereinafter referred
to as the Implementing Rules).

Article 2

The “well-known trademark” herein refers to a trademark widely known by the relevant public and highly reputable in China.

The “relevant public” includes the consumers related to certain kind of commodities or services indicated by a trademark, manufacturers
of the said commodities or other operators who provide relevant services, and the sellers and other people involved in the market.

Article 3

The following materials may be used as the certification materials of a well-known trademark:

1.

relevant materials that can evidence the extent that the relevant public know the trademark;

2.

relevant materials that can evidence the lasting time of the trademark, including the materials involving the history and scope of
the use and registration of the trademark;

3.

relevant materials that can evidence the lasting time, extent and geographic scope of any publicity work, including ways of adverting
and promotion, geographic scope, type of publicity media and the quantity of the launched advertisements;

4.

Relevant materials that can indicate that this trademark has been protected as a famous one, including the pertinent materials that
the trademark has been protected as a well-known trademark in China, or in other country or region;

5.

Other evidential materials that can indicate the trademark is famous, including the materials regarding the recent 3 years of output,
sales volume, profit payments and tax turnover and sales territory of the principal commodities using this trademark.

Article 4

Where a trademark, which has been given preliminary examination and approval and publicly announced, is thought to be in violation
of Article 13 of the Trademark Law, the party involved may raise an objection to the trademark office in accordance with the relevant
provisions of the Trademark Law and the Implementing Rules and shall submit relevant materials that can prove the trademark as famous.

Where a registered trademark is thought to be in violation of Article 13 , the party involved may file an application to the Trademark
Review and Adjudication Board, pleading it to make a ruling to revoke the registered trademark, and shall submit relevant materials
that can prove the trademark as famous.

Article 5

In the management of trademarks, where a trademark used by others is thought to be in violation of Article 13 and it is requested
to protect this famous trademark, the party involved may file an written application to the administrative department at the city
(prefecture, region) level of the place where case has occurred, pleading it to ban such use, and shall submit relevant materials
that can prove the trademark as famous. At the same time, it shall report to the administrative department at the provincial level
where it is located.

Article 6

Having received an application for the protection of a famous trademark in the administration of marks, the administrative department
for industry and commerce shall examine whether the case falls within the following circumstances as provided in Article 13 of the
Trademark Law:

1.

Where a well-known trademark that hasn’t been registered in China is used on identical or similar commodities of others without permission,
and it is likely to cause confusion;

2.

Where an trademark identical or similar to a well-known trademark that has been registered in China is used on the different or dissimilar
commodities without permission, and it is likely to mislead the public and to cause damages to the interests of the registrant of
the well-know trademark.

In any of the above-mentioned circumstances, the administrative department at the city (prefecture, region) level shall submit the
complete set of materials of this case to the administrative department of this province (autonomous region, municipality directly
under the Central Government) within 15 days as of the acceptance of the application, and shall issue a case acceptance notice to
the parties involved. Within 15 days as of the acceptance of the application, the administrative department of this province (autonomous
region, municipality directly under the Central Government) shall submit the complete set of materials of this case to the trademark
office.

A case not falling within the above-mentioned circumstances shall be timely resolved in accordance with the Trademark Law and the
Implementing Rules.

Article 7

The administrative department of the province (autonomous region, municipality directly under the Central Government) shall examine
the materials involving well-known trademark protection submitted by the administrative departments at the city (prefecture, region)
level within its jurisdiction.

For a case falling within the circumstance as listed in the first paragraph of Article 6 of the present Provisions, the materials
of the case submitted by the administrative department for industry and commerce at the city (prefecture, region) level shall be
submitted to the trademark office within 15 days as of the acceptance of these materials.

For a case not falling within the circumstance as listed in the first paragraph of Article 6 of the present Provisions, the relevant
materials shall be returned to the original acceptance organ, and the case shall be timely resolved in accordance with the Trademark
Law and the Implementing Rules.

Article 8

The trademark office shall make a decision about the relevant materials of a case, shall inform the administrative department of the
province (autonomous region, municipality directly under the Central Government) where this case occurred of the decision, and send
a copy of the decision to the administrative department of the province (autonomous region, municipality directly under the Central
Government) where the involving parties are located.

Except for the materials for proving the trademark famous, the trademark office shall return the other materials to the administrative
department of the province (autonomous region, municipality directly under the Central Government) where the case occurred.

Article 9

For a trademark that has not been identified as famous, the applicant shall not file another application for the same trademark on
the basis of the same facts and reasons within one year as of the decision is made.

Article 10

When determining whether a trademark is famous or not, the trademark office and the Trademark Review and Adjudication Board shall
take account of all the factors listed by Article 14 of the Trademark Law, but it shall not set a precondition – to require the
trademark to satisfy all the factors – for the trademark

Article 11

When protecting a well-known trademark, the trademark office, Trademark Review and Adjudication Board and local administrative department
of industry and commerce shall take the distinction and level of fame of the trademark into consideration.

Article 12

Where an applicant requests to protect its trademark in accordance with Article 13 of the Trademark law, it may offer records that
this trademark has ever been protected as a famous one by the administrative organ of our country.

If the protection scope of the case upon acceptance is almost the same as that of the case in which the trademark has already been
protected as a famous trademark, and both parties to the case raise no objection to the point that the trademark is famous, or the
opposing party raise an objection, but fails it to offer evidential materials to prove that this trademark is not famous, the administrative
department of industry and commerce that accepts this case shall make a ruling on or solve the case on the basis of the conclusion
of the protected records.

If the protection scope of the case upon acceptance differs from that of the case in which the trademark has already been protected
as a famous trademark, the opposing party raises an objection to the point that the trademark is famous and offers evidential materials
to prove that this trademark is not famous, therefore the materials related to the famous trademark shall be re-examined and identified
by the trademark office and the Trademark Review and Adjudication Board.

Article 13

If a party concerned holds that its famous trademark which has been registered as an enterprise name by others may cheat or mislead
the public, it may apply to the administrative organ of enterprise name registration for canceling the registration of this enterprise
name. The administrative organ of enterprise name registration shall deal with such a case in accordance with the Administrative
Provisions of Enterprise Name Registration.

Article 14

The administrative departments of industry and commerce of all levels shall strengthen the protection of famous trademarks, and shall
transfer the suspected cases of crimes of counterfeit trademark to the relevant departments in time.

Article 15

The administrative department of industry and commerce of the province (autonomous region, municipality directly under the Central
Government) where the organ which made the decision is located shall send a copy of the decision made to protect the famous trademark.

Article 16

The administrative departments of industry and commerce of all levels shall establish relevant supervision system, create relevant
supervision and control measures, and strengthen the supervision and inspection of the whole process of the identification of a famous
trademark.

If the pertinent functionaries engaged in the identification of famous trademarks neglect their duties, abuse their powers, seek private
interests, seek improper profits, violate the law in the identification of famous trademarks, they shall be given an administrative
punishment in accordance with the law; and those who constitute crimes shall be subject to the criminal responsibilities in accordance
with the law.

Article 17

The Provisions shall enter into force as of June 1, 2003. At the same time, the Interim Provisions for Identification and Protection
of Well-known Trademarks promulgated by the State Administration for Industry and Commerce on August 14, 1996 shall be concurrently
repealed.



 
The State Administration for Industry and Commerce
2003-04-17

 







CONSTITUTION ACT, 1982 – page 22

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