CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION ON THE RELATED ISSUES CONCERNING THE HANDLING OF CONFIRMATION LETTERS ON DOMESTIC AND FOREIGN-FUNDED PROJECTS ENCOURAGED BY THE STATE FOR DOMESTIC PROJECTS

Circular of the National Development and Reform Commission on the Related Issues concerning the Handling of Confirmation Letters on
Domestic and Foreign-funded Projects Encouraged by the State for Domestic Projects

Fa Gai Gui Hua [2003] No. 900

Each department of the State Council, the planning commissions and the economic and trade commissions of each province, autonomous
region, municipality directly under the Central Government, and city specifically designated in the state plan, as well as Xinjiang
Production and Construction Corporations; each pilot enterprise group of the State, the enterprise directly under the Central Government
and the enterprise group specifically designated in the state plan:

In accordance with the Circular of the State Council on the Adjustment of Taxation Policies for Import Equipment (Guo Fa [1997] No.
37 ) as well as the Circular of the General Office of the State Council on Printing and Distributing the Provisions on the Main Functions,
Internal Bodies and Staffing of the National Development and Reform Commission (Guo Ban Fa [2003] No.27), and for the purpose of
regulating and unifying the work of tax exemption from the import equipment for related domestic infrastructure and technical transformation
projects, a circular concerning the related issues is hereby given as follows:

Application Scope

The present Circular shall apply to the tax exemption confirmation for the investment projects in line with the Catalog of Industries,
Products and Technologies Mainly Encouraged by the State at Present (hereinafter referred to as domestic projects), and the domestic
projects specifically include:

(1)

Domestic projects which are approved by the State Council or the National Development and Reform Commission (NDRC);

(2)

Domestic infrastructure and technical transformation projects which are approved by the former State Planning Commission or former
State Economic and Trade Commission;

(3)

Domestic infrastructure projects above the quota which are approved by related departments in accordance with the Circular of the
State Planning Commission on Canceling Some Administrative Examination and Approval Matters (Ji Ban [2001] No. 2440);

(4)

Domestic projects above the quota which are approved by related entities empowered or entrusted by the NDRC, former State Planning
Commission or former State Economic and Trade Commission;

(5)

Domestic projects under the quota which are approved by the related enterprises, which are authorized by the State council to examine
and approve the projects under the quota but do not have qualification for issuing tax exemption confirmation letters; and

(6)

Other domestic projects which are determined by the NDRC.

Handling of Tax Exemption Confirmation Letters

(1)

Procedures for application of tax exemption confirmation letters

To handle a tax exemption confirmation letter for any of the aforesaid projects, the related department of the State Council, all
the provincial development and reform commissions, planning commissions, and economic and trade commissions (which refer to the development
and reform commission, planning commission and the economic and trade commission of each province, autonomous region, municipality
directly under the Central Government or city specially designated in the state plan, or Xinjiang Production and Construction Corporations,
similarly hereinafter) and all the related enterprises (which refers to each pilot enterprise group of the State, enterprise directly
under the Central Government and enterprise group under separate state planning, similarly hereinafter) shall formally submit to
the NDRC an application by official documents, and the tax exemption confirmation letter shall be issued on examination and approval
of the NDRC.

(2)

Materials that shall be subject to examination and approval for issuing a tax exemption confirmation letter

(a)

the approval document concerning the feasibility study report for the project or a photocopy thereof (in respect of a project for
which the State only examines and approves the project proposal, it shall attach a photocopy of the approval document on the project
proposal simultaneously; and in respect of a project that shall be subject to examination and approval upon authorization or entrustment,
it shall attach a photocopy of the authorization or entrustment letter separately );

(b)

the list of import equipment for the project in quadruplicate (see Annex 1 for the format) and the list of import equipment put forward
in the feasibility study report on the project;

(c)

a photocopy of the business license of the legal person entity for the project; and

(d)

other materials needed to be explained or provided.

(3)

Requirements for preliminary examination

The related department of the State Council, all the provincial development and reform commissions, planning commissions, and economic
and trade commissions as well as all the related enterprises shall carry out a preliminary examination of the legal person entity
for the project, the list of import equipments, the amount of foreign exchanges to be used, the year for starting and completing
the construction, as well as applicable policy items for the project in the application which is reported to the NDRC, and issue
preliminary examination opinions; and shall carefully examine the list of import equipments, and the amount of foreign exchange to
be used as put forward by the legal person entity for the project, and affix their seals on the said list. The self-use equipment
not for the project may not be excluded in the said list. If the import equipment or the amount of foreign exchange to be used as
put forward in the feasibility study report on the project is needed to be adjusted, they shall explain the reasons and submit the
preliminary examination opinions.

In respect of the legal person entity for a project not specified in the approval document on the feasibility study report, or any
major alteration occurring to the legal person entity for the project or the construction site during the course of implementation,
it shall make an application for a supplementary approval document on the project to the competent department that originally approved
the project, so as to make an application for a tax exemption confirmation letter again.

(4)

Issuance of tax exemption confirmation letters

The NDRC will adopt one-off tax exemption confirmation of the import equipment for domestic projects and issue tax exemption confirmation
letters (accompanied by the list of import equipment) in quadruple, of which, one copy shall be put on archives and another three
copies shall be distributed to lower levels. The related department of the State Council, all the provincial development and reform
commissions, planning commissions, and economic and trade commissions and all the related enterprises shall, on receiving the said
tax exemption confirmation letters, send to the legal person entity for the project and the customs house directly under the General
Administration of Customs at the locality of the project two copies respectively in a timely manner, and keep the last copy on the
archives.

Alteration of Tax Exemption Confirmation Letters

(1)

Procedures for making an application for the alteration of tax exemption confirmation letters

Where the tax exemption confirmation letter on any domestic project which is issued by the NDRC, former State Planning Commission
or former State Economic and Trade Commission needs to be deferred or the quota of foreign exchange to be used needs to be increased
in the implementing process, the related department of the State Council, all the provincial development and reform commissions,
planning commissions, and economic and trade commissions as well as all the related enterprises shall formally submit to the NDRC
an application for alteration by official documents. After the examination and approval of the NDRC, it shall handle the alteration
procedures.

(2)

Materials that shall be subject to examination and approval for alteration of a tax exemption confirmation letter

(a)

four photocopies of the tax exemption confirmation letter that has been issued; and

(b)

the comparison form of items before and after adjusting, and related explanation materials.

(3)

Requirements for preliminary examination

The related department of the State Council, all the provincial development and reform commissions, planning commissions, and economic
and trade commissions as well as all the related enterprises shall carry out a preliminary examination of the contents of and reasons
for altering the tax exemption confirmation letter, and put forward preliminary examination ideas in the application reported to
the NDRC.

(4)

Alteration of tax exemption confirmation letters

In principle, it may not alter a tax exemption confirmation letter without any special reason. In case there is any proper reason
and alteration shall be done, it shall alter on the photocopy of the original tax exemption confirmation letter. The alteration documents
shall be in quadruple, of which, one copy shall be put on archives and the other three copies shall be distributed to lower levels.
After receiving the altered tax exemption confirmation letter, the relates department of the State Council, all the provincial development
and reform commissions, planning commissions, and economic and trade commissions as well as all the related enterprises shall send
to the legal person entity for the project and the customs house directly under the General Administration of Customs at the locality
of the project two copies respectively in a timely manner, and keep the last copy on the archives.

Archival Filing of Tax Exemption Confirmation Letters

The related department of the State Council, all the provincial development and reform commissions, planning commissions, and economic
and trade commissions as well as all the related enterprises shall rigidly implement the related provisions on archival filing of
tax exemption confirmation letters, and shall, before 10th each month, submit to the NDRC the tax exemption confirmation letters
for domestic projects under the quota it has issued in the previous month (the approval documents on feasibility study reports for
the projects and the lists of import equipment shall be also attached) for archival purpose.

When submitting archival filing materials, all the entities shall submit both paper and electronic documents of summary tables in
line with the format (see Annex II for the format) as required.

In case any error is found in a tax exemption confirmation letter as put on archives, the NDRC may notify the entity that produced
the said letter to correct it within the time limit, and where the circumstance is serious, the NDRC may notify the General Administration
of Customs to stop implementing the tax exemption confirmation letter it has issued.

In case it has not put any tax exemption confirmation letter on archives as required for three consecutive months, the NDRC may notify
the General Administration of Customs to stop implementing the tax exemption confirmation letter it has issued.

Confirmation of Import Equipment Lists

(1)

Procedures for application of confirming the list of import equipments

In case the procedures for confirming a list of related import equipments need to be handled for a domestic project for which the
tax exemption confirmation letter has been issued by the former State Economic and Trade Commission and the tax exemption procedures
for import equipments are handled in the way of bidding, importing and confirming the equipment list by batches, the related department
of the State Council, all the provincial development and reform commissions, planning commissions, and economic and trade commissions
as well as all the related enterprises shall formally apply to the NDRC by official documents. After examination and approval of
the NDRC, it shall supplement the conformation procedures once and for all (not by batches).

(2)

Materials that are needed for examination and approval for confirming a list of import equipments

(a)

the tax exemption confirmation letter which is issued by the former State Economic and Trade Commission and a photocopy of the list
of import equipment that has been confirmed;

(b)

the list of import equipments which are put forward in the feasibility study report on the project;

(c)

the list of import equipments for the project that needs to be confirmed in quadruple; and

(d)

other materials that need to be explained or supplied.

(3)

Requirements for preliminary examination

The related department of the State Council, all the provincial development and reform commissions, planning commissions, and economic
and trade commissions as well as all the related enterprises shall carefully examine the list of equipments that needs to be imported
in comparison with the feasibility study report and official reply on the project, and affix seals on the said list. Self-use equipments
not for the project may not be included in the said list. If it is necessary to adjust the import equipments or the amount of foreign
exchange to be used which is put forward in the feasibility study report on the project, it shall specify the reasons for adjustment
and the preliminary examination ideas.

(4)

Confirmation of import equipment lists

A list of import equipments shall be confirmed in the way of affixing seals thereon, and it shall issue the list of import equipments
in quadruple, of which, one copy shall be put on archives and another three copies shall be distributed to lower levels. After receiving
the confirmation letters on the equipment list, the related department of the State Council, all the provincial development and reform
commissions, planning commissions, and economic and trade commissions as well as all the related enterprises shall send two copies
to the legal person entity for the project and the customs house directly under the General Administration of Customs at the locality
of the project respectively in a timely manner, and keep the last copy on the archives.

Miscellaneous

(1)

The “domestic projects above the quota” as mentioned in the present Circular means those large and medium-sized domestic infrastructure
projects as well as domestic technical transformation projects above the quota which are provided in the related existing policies
for examination and approval of fixed-asset investment projects.

(2)

In accordance with the Circular of the State Council on the Adjustment of Taxation Policies for Import Equipment and other related
documents, each tax exemption confirmation letter for the domestic project above the quota shall be issued by the NDRC, and each
related entity shall comply with this prescription rigidly, and may not illegally issue tax exemption confirmation letters for the
projects above the quota.

(3)

For the handling of tax exemption confirmation letters for the domestic projects under the quota that are not mentioned in the present
Circular, all the entities that have the qualification for issuing tax exemption confirmation letters for such projects shall formulate
measures of administration by referring to the present Circular.

(4)

In respect of the application for confirming the exemption of tax on related import equipment, any other intermediary institution
or individual may not deputize, except the legal person entity for the project.

(5)

Related documents shall be submitted to higher levels in the form of official documents. After receiving the complete and correct
application materials the NDRC shall, in principle, issue approval documents and distribute tax exemption confirmation letters within
10 working days by means of official documents.

(6)

The Planning Department of the NDRC shall be specifically responsible for the tax exemption confirmation administration of the import
equipments for those investment projects in line with the Catalog of Industries, Products and Technologies Encouraged by the State
at Present, and the issuance of Confirmation Letters on Domestic and Foreign-funded Projects Encouraged by the State for the investment
projects above the quota.

Each related entity shall, in combination with the institutional reform and in accordance with the present Circular as well as the
principle of smooth connection between high levels and lower levels, straighten out the relations and specify the offices in charge
of this work, and report to the Planning Department of the NDRC the related contact persons and their phone numbers prior to September
1.

(7)

The present Circular shall be implemented as of August 10, 2003. In the case of any specific problem encountered in the implementation,
all the related entities shall contact the Planning Department of the NDRC in a timely manner.

Tel: 68502556

Fax: 68501657

E-mail: wangbc@sdpc.gov.cn

Annex I Format of the List of Import Equipments and Technology (omitted)

Annex II Format of Archival Filing and Summary Table (EXCEL is required to be employed as the document form) (omitted)

The National Development and Reform Commission

August 8, 2003

The National Development and Reform Commission
2003-08-08

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE ADMINISTRATION OF FOREIGN EXCHANGE IN BORDER TRADE

Notice of the State Administration of Foreign Exchange on Printing and Distributing the Measures for the Administration of Foreign
Exchange in Border Trade

HuiFa [2003] No. 113
September 22nd 2003

The branches / departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities
directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo Cities, and all designated foreign
exchange (FX) banks controlled by Chinese fund:

For the purpose of promoting the development of border trade between China and its surrounding counties and regulating the FX administration
in border trade, the State Administration of Foreign Exchange (SAFE) has formulated the Measures for the Administration of Foreign
Exchange in Border Trade (hereinafter referred to as the Measures). The Measures are hereby printed and distributed to you, with
the relevant matters notified as follows:

The Measures are applicable to the foreign trade operations related to border trade in the border provinces (autonomous regions).
The designated FX banks and enterprises outside the border provinces shall not be governed by the present Measures.

The Measures are a normative document on FX administration in border trade of the whole nation. The SAFE branches in all border provinces
(autonomous regions) shall, pursuant to the present Measures and other provisions on the administration of foreign trade and in response
to the real situation of FX operations in border trade, formulate detailed implementation rules for FX administration in border trade
within their respective jurisdictions. If a port SAFE sub-branch, as demanded by the real situation, is to formulate detailed implementation
rules for FX administration in border trade under its jurisdiction, it shall submit the drafted rules to the SAFE branch of the province
(autonomous region) where it is located, which shall carefully examine and submit them as well as the detailed implementation rules
drafted for FX administration in border trade of the whole province (autonomous region) to the SAFE for approval.

When submitting the drafted rules, the SAFE branches in all border provinces (autonomous regions) shall also submit the import &
export circumstances, the settlement channels and writing-off of FX proceeds and payment concerning import & export of border
trade within their respective jurisdictions and in all port areas under their respective jurisdictions, as well as the circumstances
of FX administration in the neighboring countries.

The designated FX banks in border areas shall, pursuant to the relevant provisions of the People’s Bank of China and the SAFE and
out of consultation on an equal footing, establish agency relations with banks in the border areas of the neighboring countries and
open direct settlement channels between the banks. For a neighboring country whose central bank has concluded a bilateral agreement
on home currency payment, the designated FX banks in the border areas shall establish agency relations with the commercial banks
in the border areas of such country, open direct settlement channels between banks, increase outlets for FX settlement and sales
and provide convenient and shortcut services to border trade enterprises.

Upon receiving the present Notice, all SAFE branches in border provinces (autonomous regions) shall transmit it as soon as possible
to the port SAFE sub-branches and designated FX banks within their respective jurisdictions as well as the relevant organizations;
and all designated FX banks controlled by Chinese capital shall transmit it as soon as possible to their branches. In case any problem
occurs during the implementation of the present Notice, please feed back to the State Administration of Foreign Exchange in good
time.

Attachment: Measures for the Administration of Foreign Exchange in Border Trade

Attachment:
Measures for the Administration of Foreign Exchange in Border Trade
Chapter I General Provisions

Article 1

For the purpose of promoting the sound development of border trade between China and its surrounding countries, improving the FX
administration and regulating the capital settlement behaviors and account administration in border trade, the Measures have been
formulated pursuant to the Regulations of the People’s Republic of China on the Administration of Foreign Exchange as well as other
provisions concerned.

Article 2

The term “border trade” as mentioned in the present Measures refers to the transactions between inhabitants on either side of the
border, small-scale border trade and foreign economic and technical cooperation in border areas.

The transactions between inhabitants on either side of the border refer to the exchange of commodities between border inhabitants
within the range of designated capital amount and quantities in the open sites within 20 kilometers from the border line to each
side as approved by the governments or on the designated markets.

The small-scale border trade refers to the trade activities through state-designated land port on border between the enterprises with
small-scale trade right approved in the border areas of China and the enterprises or other trade organizations in the border areas
of the neighboring countries (hereinafter referred to as trade organization outside China).

The foreign economic and technical cooperation in border areas refer to the project contracting and labor services in the border areas
of China’s neighboring countries by enterprises with foreign economic and technical cooperation right approved in the border areas
of China.

Article 3

The border trade enterprises as mentioned in the present Measures include the small-scale border trade enterprises and foreign economic
and technical cooperation enterprises of China.

The small-scale border trade enterprises refer to the enterprises with small-scale trade right as approved by the departments in charge
of commerce.

The foreign economic and technical cooperation enterprises refer to the enterprises with foreign economic and technical cooperation
right on project contracting, labor services, etc. in the border areas of the neighboring countries, as approved by the commerce
competent departments.

Article 4

When conducting border trade with trade organizations outside China, the border trade enterprises or individuals may use freely convertible
currencies, home currencies of the neighboring countries or RMB for pricing and settlement, or conduct settlement through barter
trade.

Article 5

When conducting border trade settlement with trade organizations outside China, the border trade enterprises or individuals shall
carry out the reporting of balance of payment statistics pursuant to the Measures for Statistical Reporting on Balance of International
Payments and other provisions concerned.

Article 6

The SAFE and the branches and sub-branches thereof are the authorities in charge of FX operations in border trade.

Article 7

After obtaining the small-scale border trade right or the foreign economic and technical cooperation right upon the approval of the
commerce competent departments, a border trade enterprise shall go to the FX administration for record keeping by presenting the
business license issued by the administration of industry and commerce, the approval document of the commerce competent department,
the certificate of organizational code and the certification for registration with the customs.

Chapter II Account Administration in Border Trade

Article 8

A border trade enterprise shall open, use and close accounts with the designated FX banks (hereinafter referred to as the banks)
in China’s border areas under the Provisions on the Management of Domestic Foreign Exchange Accounts, the Detailed Implementation
Rules for the Administration of Current Foreign Exchange Accounts of Domestic Institutions and other provisions concerned.

Article 9

A border trade enterprise may open with the banks in China’s border areas the border trade accounts capable of settlement in the
currency of a neighboring country. For a currency of the neighboring country in a situation that the central bank of the currency
issuing country has not concluded with the People’s Bank of China a bilateral agreement on home currency payment, when a border trade
enterprise opens the border trade account in such currency, the scope of income is: the capitals transferred under border trade by
the trade organizations outside China from the current FX accounts or the border trade accounts in the currency of the neighboring
country opened with banks in China’s border areas; and the scope of payout is: the capitals transferred under border trade by the
trade organizations outside China to the current FX accounts or the border trade accounts in the currency of the neighboring country
opened with the banks in China’s border areas. For a currency of the neighboring country in a situation that the central bank of
the currency issuing country has concluded with the People’s Bank of China a bilateral agreement on home currency payment, the border
trade accounts in such currency opened by a border trade enterprise shall be utilized pursuant to the aforesaid agreement and incorporated
into the administration under the Foreign Exchange Accounts Administration Information System.

Article 10

Trade organizations outside China may open with banks in China’s border areas the current FX accounts and the border trade accounts
in the currency of the neighboring country. For a trade organization of the neighboring country whose central bank has not concluded
with the People’s Bank of China a bilateral agreement on home currency payment, the scope of income of the current FX accounts and
the border trade accounts in the currency of the neighboring country is: the capitals transferred under border trade from the border
trade FX accounts or the border trade accounts in the currency of the neighboring country opened by the domestic border trade enterprises
and individuals; and the scope of payout is: the capitals transferred under border trade to the border trade FX accounts or the border
trade accounts in the currency of the neighboring country opened by the domestic border trade enterprises and individuals. For a
trade organization of the neighboring country whose central bank has concluded with the People’s Bank of China a bilateral agreement
on home currency payment, the current FX accounts and the border trade accounts in the currency of the neighboring country opened
thereby shall be utilized in accordance with the said agreement.

Article 11

In the border areas with big volume of RMB settlement, a trade organization outside China may open an exclusive account for RMB settlement
in border trade. Such account may not be used for any purpose other than receipt and payment of capitals under border trade settlement.

Article 12

During the opening of a current FX account, border trade account in the currency of the neighboring country or exclusive account
for RMB settlement in border trade with a bank in China’s border areas, a trade organization outside China shall file an application
thereof to the FX administration of the locality where such opening takes place by presenting the business license certification
of its home country (in the case of an individual, valid identity certification such as passport) and such materials as border trade
contract, and go through the account-opening procedures by presenting the approval document of the FX administration. A account-opening
bank shall handle the account-opening procedures for the trade organization outside China in accordance with the present Measures
and indicate with special marks the account numbers of the current FX accounts and the border trade accounts in the currency of the
neighboring country opened by the trade organizations outside China so as to incorporate such numbers into the administration under
the “Foreign Exchange Accounts Administration Information System”.

For a current FX account, a border trade account in the currency of a border country or exclusive account for RMB settlement in border
trade opened by a trade organization outside China with a bank in China’s border areas, all foreign-related income and payment transactions
taking place outside China of such account shall be subject to the procedures of statistical reporting on the balance of international
payments in accordance with the relevant provisions of China on FX administration.

Article 13

In case a trade enterprise collects export proceeds by arranging a domestic resident individual as the payee, it shall report in
advance the name, account number, etc. of such resident individual proposed to the local FX administration for archival purposes.
The account-opening bank shall process account-opening procedures upon the certification issued by the FX administration and indicate
such account with a special mark. The scope of income for an account of such category is: the FX payments remitted from outside China
for goods under the border trade export. The enterprise receiving the payments shall conduct FX settlement with the bank immediately
after entering such payments into the account, and the bank shall issue to such enterprise the FX settlement voucher used exclusively
for the writing-off of export FX proceeds. The FX transactions in the accounts of such category shall be settlement under trade;
when submitting the Monthly (Ten-day) Report on Bank Statistics of Foreign Exchange Settlement and Sales to the FX administration,
the bank shall include such transactions under the post_title of “101 Trade Proceeds”.

Chapter III Administration of Foreign Exchange Proceeds and Payments in Border Trade

Article 14

As to the freely convertible currencies earned under current account by a border trade enterprise, for those within the quotas of
current FX accounts as approved by the FX administration, the enterprise may conduct settlement or retain the FX by depositing it
in the current FX account; for those exceeding the approved quotas, the enterprise shall conduct settlement as provided for. For
the currency of the neighboring country received under current account by a border trade enterprise, the enterprise may deposit such
currency in the border trade account in the currency of the neighboring country or sell them at the free will of the banks for purchase.

Article 15

The foreign payments under current account by a border trade enterprise shall, in accordance with the Provisions on the Administration
of Foreign Exchange Settlement, Sales and Payments and other provisions concerned, be made from the current FX account, border trade
account in the currency of the neighboring country or RMB account or be honored at the bank by presenting the designated valid certificates
and commercial documents.

Article 16

If direct FX collection or payment arises with a border trade enterprise or individual from the current FX account, border trade
account in the currency of the neighboring country or exclusive account for RMB settlement in border trade opened with a bank in
China’s border areas, such enterprise or individual shall be regarded as making FX collection from or payment to outside China. The
border trade enterprise and individual shall go through the procedures for statistical reporting on the balance of international
payments with the bank and take the designated valid certificates and business documents to go through the collection or payment
procedures concerned, in accordance with the Measures for Statistical Reporting on Balance of International Payments, the Provisions
for the Administration of Foreign Exchange Settlement, Sales and Payment and other provisions concerned.

Chapter IV Administration of Proceeds and Payments Writing-off in Border Trade

Article 17

If foreign payment by a border trade enterprise under import in border trade is settled in a freely convertible currency or the currency
of the neighboring country, no matter the payment is made to outside China or to the current FX account or border trade account in
the currency of the neighboring country opened in a bank of China’s border areas by a trade organization outside China, such enterprise
or individual shall fill out the Form on the Writing-off of Foreign Exchange Payment Under Import in Trade (Substitute Reporting
Form) and go through the writing-off procedures for the FX payment in accordance with the Interim Measures for the Supervision and
Administration of Foreign Exchange Payment Under Import Trade and other provisions concerned.

Article 18

For a border trade enterprise that needs to make settlement in RMB during import, if the other party is an enterprise located in
a country that have signed a bilateral agreement on home currency payment, the first mentioned enterprise shall fill out the Form
on the Writing-off of Foreign Exchange Payment Under Import Trade (Substitute Reporting Form) during the payment for goods and go
through the writing-off procedures for the FX payment in accordance with the Interim Measures for the Supervision and Administration
of Foreign Exchange Payment Under Import Trade and other provisions concerned.

Article 19

Where a border trade enterprise needs to make payment to an exclusive account for RMB settlement in border trade opened by a trade
organization outside China with a bank in China’s border areas, the beneficiary’s bank shall process the account entry procedures
at the presentation of the contract provided by the trade organization outside China, the customs declaration of imports by the border
trade enterprise and other designated certificates. After the completion of account entry procedures, the beneficiary’ s bank shall
write off the corresponding customs declaration of imports on the China E-port Foreign Exchange Payment System and conclude the case
thereabout in good time, or make a submission to the local FX administration for the writing-off and case conclusion.

Article 20

After processing the writing-off procedures for import FX payment, the FX administrations and the banks shall write off the corresponding
customs declaration of imports on the China E-port Foreign Exchange Payment System and conclude the case thereabout in good time
under the provisions concerned.

Article 21

A border trade enterprise conducting export under border trade shall apply for the export Foreign Exchange Proceeds Writing-off Form
and go through the procedures for export customs declaration, FX proceeds, etc. The writing-off of FX proceeds shall be handled under
the following provisions:

(1)

For exchange settlement in a freely convertible currency, the border trade enterprise shall go through the export FX proceeds writing-off
procedures in accordance with the Administrative Measures for the Writing-off of Export Foreign Exchange Proceeds, the detailed implementation
rules thereof and other provisions concerned.

(2)

For cash settlement in a freely convertible currency, the border trade enterprise shall go through the export FX proceeds writing-off
procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, the bank-issued FX cash settlement
voucher and the purchase invoice.

(3)

For settlement in the currency of a neighboring country, the border trade enterprise shall go through the export FX proceeds writing-off
procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the customs-verified declaration
on carrying currency cash of a neighboring country or the bank-issued inward remittance certification.

(4)

For settlement in RMB, the border trade enterprise shall go through the export FX proceeds writing-off procedures by presenting the
customs declaration of imports, the export FX proceeds writing-off form, and the RMB inward remittance certification (where the trade
organization has opened an exclusive account for RMB settlement in border trade, the enterprise may present the domestic RMB transfer
certification).

(5)

For payment collected from the current FX account or the border trade account in the currency of a neighboring country opened by a
trade organization outside China with a bank in China’s border areas, the border trade enterprise shall go through the export FX
proceeds writing-off procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the
capital transfer certification issued by the payer’s bank.

(6)

For FX payment collected by remittance of domestic resident individual, the border trade enterprise shall go through the export FX
proceeds writing-off procedures by presenting the customs declaration of imports, the export FX proceeds writing-off form, and the
exclusive settlement voucher for writing-off of export FX proceeds.

(7)

For settlement through barter trade, the border trade enterprise shall go through the export FX proceeds writing-off procedures by
presenting such documents as the export FX proceeds writing-off form, and the customs declarations of exports and imports respectively.

Article 22

After processing the export FX proceeds writing-off procedures, the FX administrations shall issue the “special page for writing-off
and drawback of export FX proceeds” to the border trade enterprises and indicate the type of currency and the capital amount in the
column of remarks.

Article 23

The FX administrations shall, in accordance with the Administrative Measures for the Writing-off of Export Foreign Exchange Proceeds,
the detailed implementation rules thereof and the present Measures, distribute the export FX proceeds writing-off forms and process
the export FX proceeds writing-off procedures, and conduct appraisal of the circumstances concerning the export FX proceeds of such
enterprises.

Article 24

The FX administrations shall strengthen statistics and analysis of border trade and gather information about border trade within
their jurisdictions in good time. All SAFE sub-branches shall submit the Statistical Form on Import & Export and Writing-off
Circumstances of Small-amount Border Trade of the last month to the SAFE within first ten office days of each month.

Chapter V Administration of Settlement and Conversion of Currencies in Border Trade

Article 25

The banks in border areas shall, in accordance with the relevant provisions of the People’s Bank of China, establish agency relations
with the commercial banks in the border areas of the neighboring countries and open direct settlement channels between banks.

Article 26

In accordance with the Notice of the People’s Bank of China on Relevant Issues Concerning the Administration of Foreign Currency
Cash (YinFa [2001] No.376), the Supplementary Notice of the People’s Bank of China on Relevant Issues Concerning the Administration
of Foreign Currency Cash (YinFa [2001] No. 384), the Interim Measures for the Administration of Foreign Exchange Settlement and Sales
in Designated Foreign Exchange Banks (Order No. 4 [2002] of the People’s Bank of China), and the Detailed Implementation Rules for
the Administration of Foreign Exchange Purchase by Domestic Resident Individuals, all commercial banks in the border areas engaged
in foreign currency deposit operations upon the approval of the banking regulatory departments may apply for individual FX settlement
operations upon the approval of the local FX administrations, and all commercial banks in border areas engaged in FX settlement and
sales or conversion of foreign currencies upon the approval of the banking regulatory departments or the FX administrations may apply
for individual FX sales operations and increase outlets for FX settlement and sales upon the approval of the local FX administrations.

Article 27

The banks in the border areas shall, in accordance with the Notice of the People’s Bank of China on Relevant Issues of Adjusting
Administrative Policies for Foreign Currency Cash (YinFa [2002] No. 283), adjust the purchase and sale prices of foreign currency
cash within the designated floating range. The FX administrations shall assist the banks in conducting individual FX settlement and
sales operations by fluctuating in line with the market conditions under the provisions concerned and guide them in handling well
the risk management and capital balance.

Article 28

The banks in the border areas may put up exchange rates between RMB and currencies of the neighboring countries and self-determine
the difference between purchase and sale prices, with the currencies of the neighboring countries accepted being handled on their
own.

Article 29

The banks in the border areas shall set up foreign currency conversion outlets to process the conversion between RMB and freely convertible
currencies or currencies of the neighboring countries in accordance with the provisions concerned of the banking regulatory authority
and the SAFE.

Chapter VI Supplementary Provisions

Article 30

The banks, border trade enterprises and individuals shall carry out the relevant FX operations of border trade pursuant to the present
Measures and other provisions concerned on FX administration. For violators of the present Measures or other provisions concerned
on FX administration, the FX administrations will mete out punishment pursuant to the laws and regulations such as the Regulations
of the People’s Republic of China on FX Administration.

Article 31

Other matters concerning FX administration unspecified in the present Measures shall be implemented pursuant to the laws and regulations
concerned on FX administration.

Article 32

The banks shall earnestly perform the provisions on the reporting of wholesale and doubtful capital transactions in strict compliance
with the Provisions on Anti-Money Laundering in Financial Institutions and the Administrative Measures for the Reporting of Wholesale
and Doubtful Capital Transactions in Financial Institutions. In case of any doubtful situation, a bank shall timely submit to the
next higher-level bank as well as the people’s bank, FX administration and public security department in the place where it is located,
take initiatives to cooperate with the people’s bank, FX administration and public security department in handling well the relevant
work, and prevent and combat illegal FX trading activities such as using border trade payment or settlement to commit money-laundering.

Article 33

A SAFE branch in a province (autonomous region) where the border areas belong may, in accordance with the present Measures and other
laws and regulations on FX administration and on catering to the real circumstances of the locality, formulate corresponding detailed
implementation rules, which shall be promulgated and implemented upon the approval of the SAFE.

Article 34

The power to interpret the present Measures shall remain with the SAFE.

Article 35

The present Measures shall be implemented as of October 1st 2003, on which the Interim Measures for Foreign Exchange Administration
as promulgated on January 23rd 1997 and the Notice of the State Administration of Foreign Exchange on the Foreign Exchange Administration
of Small-scale Border Trade Between China and Russia and Other Members of the Commonwealth of Independent States as promulgated on
September 16th 2002 will be repealed at the same time.

Attachment: Statistical Form on Import & Export and Writing-off Circumstances of Small-amount Border Trade (omitted)

State Administration of Foreign Exchange
2003-09-22

PROVISIONS ON THE ANTIDUMPING INVESTIGATION OF INDUSTRY INJURY

Ministry of Commerce

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

No.5

Provisions on the Antidumping Investigation of Industry Injury, Provisions on the Countervailing Investigation of Industry Injury,
Provisions on the Investigation of Industry Injury under Safeguard Measures that have been reviewed and passed by the 5th executive
meeting of the Ministry of Commerce on September 9, 2003, are hereby issued and shall be put into effect after 30 days.

Lv Fuyuan, the minister of the Ministry of Commerce

October 17, 2003

Provisions on the Antidumping Investigation of Industry Injury

Chapter I. General Provisions

Article 1

The present Provisions are formulated in accordance with the Antidumping Regulation of the People’s Republic of China (hereinafter
referred to as Antidumping Regulation), with the aim to regulate the antidumping investigation of industry injury.

Article 2

The present Provisions shall apply to the activities related to the antidumping investigation of industry injury in accordance with
the Antidumping Regulation.

Article 3

The Ministry of Commerce of the People’s Republic of China (MOFCOM) shall take charge of the antidumping investigations of industry
injury. As for the antidumping investigations of industry injury related to agricultural products, the responsibility shall be undertaken
jointly by the MOFCOM and the Ministry of Agriculture.

Chapter II. Cognizance of Injury

Article 4

The term “industry injury” refers to an actual injury or a risk of actual injury to the existing domestic industry, or actual encumbrance
of the establishment of a domestic industry resulted from dumped imports.

The term “actual injury” as stated in the present Provisions refers to the non-negligible injury caused by dumped imports to an established
domestic industry.

The term “risk of actual injury” means that no actual injury has been caused to the domestic industry, but there is evidence showing
that an actual injury to the domestic industry is clearly foreseeable and imminent unless measures are taken against it.

The term “actual encumbrance” means that the dumped imports have not resulted in actual injury or have not formed a risk of actual
injury to the domestic industry, but has seriously retarded the establishing process of domestic industry.

Article 5

In the Cognizance of the injury caused to the domestic industry by dumped imports, the following matters shall be investigated:

(1)

The volume of the dumped imports and the consequential effect dumped imports on the price of domestic kindred products;

(2)

The consequential effect of the dumped imports on domestic industry.

Article 6

The investigation of dumped imports shall involve whether there has been a significant increase in dumped imports either in absolute
terms or relative to the production or the consumption of the domestic kind products.

The investigation of the consequential impact of dumped imports on the price of domestic like products shall involve whether there
has been a significant price reduction of the dumped imports or whether the dumped imports have resulted in a significant depression
in the price of the domestic like product or prevented price increase of the domestic like products that would have occurred.

Article 7

The investigation of the impact of the dumped imports on the domestic industry shall involve an assessment of all relevant economic
factors and indicators which have influences on the situation of the industry, including actual and potential decline in sales, profits,
output, market share, productivity, return on investment, or equipment utilization, the factors that have influences on domestic
prices, the amplitude of the dumped imports; the actual or potential adverse effects on the inventories, employment, wages, growth,
ability to raise capital or to make investment etc.

Article 8

The determination of an actual injury shall be based on the clearly foreseeable and imminent situation, in which if no measures are
taken, an actual injury will occur. The determination of a risk of actual injury shall be based on facts, rather than simply on complaints,
conjectures or the least possibility.

Moreover, when determining a risk of actual injury, investigations shall be made but not limited to the factors as follows:

(1)

Significant increase rate showing a likely actual increase of dumped imports;

(2)

The capability of the exporters to use fully and freely or of potential actual increase, which shows a likely actual increase of dumped
exports entering the market of the importing members. In the use of this indicator, one should consider the factor whether there
are any other export markets that may take in any additional exports;

(3)

Whether the imported product are being imported in prices of significant depression or suppression of prices of domestic like product,
which is likely to cause an increase of the demands of imports;

(4)

The inventories of the products under investigation.

Article 9

When determining an actual encumbrance of the establishment of a domestic industry, the investigation shall, in addition to the factors
listed in Article 8 , be made but not limited to the factors as follows:

(1)

The foundation and the related preparatory work of the domestic industry;

(2)

The increase of domestic demands and the consequential effects;

(3)

The impact of the dumped imports on the domestic market;

(4)

The follow-up productivity of the dumped imported product and the development trends in the domestic market.

Article 10

like product refers to a product that is identical to, or in the absence of such a product, one that has characteristics closest to
those of the imported dumped product in question.

Article 11

In the determination of like products, such factors shall be taken into account as the physical characteristics of the products, chemical
features, manufacturing equipment and techniques, purposes of use, substitutability, appraisal of consumers and producers, distribution
channels, and prices, etc.

Article 12

The influence of the dumped imports on domestic industry shall be assessed on the basis of the separate definition of the production
of the domestic like product. If, on the basis of the techniques of production and the producers’ sales and profits, one cannot distinguish
the production of domestic like product from the production of other products, the influence of dumped imports shall be determined
by reference to the production of the narrowest product group or scope which include the domestic like product insofar as the product
group or scope can provide sufficient information.

Article 13

In the determination of a domestic industry, one should consider all the producers of the domestic like product in China, or the producers
whose total output forms the principal part of the total output of the domestic like product; however, if a domestic producer is
associated with an export business operator or import business operator, or he himself is an import business operator of the dumped
imports, he may be not be considered as the domestic industry.

The term “is associated with” mentioned above means that one party directly or indirectly controls or influences another, or both
parties are controlled or influenced by a third party, or both parties jointly control or influence a third party in a direct or
an indirect way.

Article 14

In the determination of a regional industry, the following factors shall be considered:

(1)

The producers sell all of or nearly all of the like products manufactured by them in this regional market;

(2)

The demands of the regional market aren’t satisfied or aren’t mainly satisfied by the like-product producers in other domestic areas;
and

(3)

Other factors.

Article 15

An accumulative evaluation of the influence of dumped imports on the domestic industry may be made if the dumped imports come from
two or more countries (regions) and simultaneously meet requirements as follows:

(1)

The dumping margin is not less than 2% and the volume of dumped imports isn’t negligible;

(2)

It is reasonable to make an accumulative evaluation according to the competition conditions among the dumped imports and those between
the dumped imports and the domestic like products,.

(3)

The term “negligible” mentioned above means that the volume of the dumped imports from a country (region) is considered negligible
if it accounts for below 3% of the total volume of the imported like product, but excluding the circumstance that countries which
individually account for below 3% collectively account for more than 7% of the total volume of imports of like products.

Article 16

In an accumulative assessment, the following factors shall be considered:

(1)

The continuity and possibility of the influence of dumped imports from different countries (regions) on the domestic industry;

(2)

The substitutability between the dumped imports from different countries and the domestic like product, including such factors as
the demands of special clients, product quality and so on;

(3)

The sales prices, quoted prices of the sells and actual transactions prices of the dumped imports from different countries (regions)
and the domestic like product in the markets of a same area;

(4)

Whether there are identical or similar distribution channels for a dumped product imported from different countries (regions) and
the domestic like product, and whether they occur in the market simultaneously;

(5)

Other competition conditions that exist among the dumped imports and between the dumped import product and the domestic like product;
and

(6)

Other factors.

Article 17

In the investigation of industry injury, the MOFCOM shall give users or consumers of the dumped imports an opportunity to present
their views and evidences.

Article 18

The period subject to antidumping investigation of industry injury shall generally be 3-5 years before the investigation commences.

Chapter III. Industry Injury Investigation

Article 19

When any interested party applies for answering the antidumping investigation of industry injury, it shall apply to the MOFCOM within
20 days from the day when an announcement on the initiation of antidumping investigation of industry injury is made, and shall carry
out relevant registration formalities. At the same time, the applicant shall offer the information related to its productivity, output,
inventories, construction and expansion plans, the volume and amount of the product exported to China, the volume and amount of the
product imported by the import business operators.

Article 20

The interested parties may be:

(1)

overseas producers, export business operators, and domestic import business operators of the products under investigation, or guilds
or other organizations of the producers, export business operators and import business operators of the products under investigation;

(2)

the government of the country (region) of origin and the export country (region) of the products under investigation as well as the
representatives thereof;

(3)

producers and business operators of domestic like products, or guilds or other organizations of the producers and business operators
of the products; or

(4)

others.

Article 21

An interested party who is involved in the investigation shall present his identification certificate. In the case that the interested
party is an enterprise or any other organization, it shall submit its business license and other registration certificates, and the
identification certificate of the legal representative.

In the case that an interested party entrusts an agent to deal with the matter under investigation, it shall present identification
certificate of the agent and a power of attorney. In the case that an interested party entrusts a lawyer as his proxy, the lawyer
shall serve a law firm in China and shall practice law in China, a power of attorney, the business license of the law firm and the
law-practice certification of the lawyer shall be presented.

Article 22

In the antidumping investigation of industry injury , the objects of the MOFCOM include domestic producers, domestic import business
operators, domestic purchasers, domestic end consumers, foreign export business operators and foreign producers, etc.

Article 23

The MOFCOM may, whenever necessary, consign experts in the fields of the relevant industry, accounting, economics, trade, and law
to provide consultation services. The experts involved shall keep the secrets.

Article 24

The MOFCOM shall take such means as questionnaires, sampling, hearing, technical authentication, on-the-spot investigation and so
on to make an industry injury investigation.

Article 25

The questionnaires issued by the MOFCOM to the interested parties include domestic producer questionnaires, domestic importer questionnaires,
domestic consumer questionnaires, overseas producer and overseas exporter questionnaires, and other forms of questionnaires

Article 26

An interested party shall submit answers to the questionnaires according to the method and time limit as specified in the questionnaires.
If it needs to extend the time limit, it shall, 7 days prior to the time limit for the submission of answers, submit a written application
to the MOFCOM and make an explanation. It is for the MOFCOM to decide whether to extend the time limit or not.

Article 27

The MOFCOM may make on-the-spot investigation to the interested parties. Prior to the on-the-spot investigation, it shall notify the
relevant interested parties of the major purposes and content of the examination.

Article 28

The MOFCOM may, on the requirement of the interested parties or in need of the investigation, upon the approval of the relevant country
(region), consign persons to the country (region) to conduct investigations on the productive capacity, investments in expanding
production, inventories, place of origin or entrepot, the link among the enterprises and other information related to the product.

Article 29

The MOFCOM may require the interested parties to submit or supplement written materials according to the relevant provisions, and
the interested may offer to submit written materials to the MOFCOM as well.

Article 30

The MOFCOM may, at the request of an interested party, or whenever necessary, hold a hearing of industry injury.

Article 31

In the case that an interested party involved in the industry injury investigation considers it necessary to keep the materials and
the relevant evidence secret, it shall, when submitting the materials to the MOFCOM, attach a non-confidential summary of the materials,
or submit the confidential text and an open text of the materials.

The non-confidential summary and open text shall contain reasonable substantial content of the confidential information. In the absence
of substantial content, the MOFCOM may request the interested party to supply relevant content and evidential materials.

Article 32

In the case that any interested party involved in the industry injury investigation fails to provide a non-confidential summary or
an open texts of the materials submitted by it, or fails to provide good reasons, the MOFCOM may refuse to take the materials into
account. If the MOFCOM does not considers it necessary to keep the materials submitted by an interested party secret, it might request
the interested party to withdraw its application for secrecy purposes.

Article 33

In the industry injury investigation, any interested party involved shall faithfully provide the information and offer relevant materials.
If any interested party fails to do so, or fails to provide necessary information within a reasonable time limit, or seriously intervene
with the investigation by any other means, the MOFCOM may make a ruling based on the facts it has already obtained and the best information
available.

Chapter IV. Supplementary Provisions

Article 34

As an interested party involved in the industry injury investigation submits any document or evidential material to the MOFCOM, it
shall submit the original Chinese text in quintuplicate accompanied by the corresponding electronic text (computer floppy disks or
CDs) in triplicate.

Article 35

Chinese language prescribed by the administrative department of languages of the state is considered as the formal language by the
industry injury investigation of the MOFCOM. Any document, materials or information offered by an interested party shall be written
in standard Chinese. As for any materials in any other language, a Chinese translation and the original text shall be submitted,
and the Chinese version shall prevail. Any materials in any non-prevailing language without attaching a Chinese version shall not
be considered as valid and lawful evidential material.

Article 36

The authority to interpret the present Provisions shall remain with the Ministry of Commerce.

Article 37

The present Provisions shall go into effect 30 days after the date of promulgation. At the same time when the present Provisions are
implemented, the Provisions on the Antidumping Investigation of Industry Injury and Award (Order No. 45 (2002) of the former State
Economic and Trade Commission shall be repealed.

Ministry of Commerce
2003-10-17

NOTICE OF THE STATE FOOD AND DRUG ADMINISTRATION ON THE ISSUES CONCERNING THE IMPLEMENTATION OF THE ADMINISTRATIVE MEASURES FOR THE IMPORT OF DRUGS

State Food and Drug Administration

Notice of the State Food and Drug Administration on the Issues concerning the Implementation of the Administrative Measures for the
Import of Drugs

GuoShiYaoJianZhu [2003] No. 320

November 19th, 2003

All port administrations of food and drugs, all port drug inspection offices, the customs of Guangdong Province of the General Administration
of Customs, the special offices of Tianjin and Shanghai, and all customs directly under the General Administration of Customs:

In accordance with Order No. 4 of the State Food and Drug Administration, the Administrative Measures for the Import of Drugs (hereinafter
referred to as the Measures) shall be implemented as of January 1st, 2004. With a view to earnestly carrying out the implementation
of the Measures, we hereby make the notice of the relevant issues as follows:

Upon the approval of the State Council, imported drugs are allowed to enter China through 18 port cities, that is, Beijing, Tianjin,
Shanghai, Dalian, Qingdao, Chengdu, Wuhan, Chongqing, Xiamen, Nanjing, Hangzhou, Ningbo, Fuzhou, Guangzhou, Shenzhen, Zhuhai, Haikou,
and Xi’an.

With a view to strengthening the administration and enhancing the efficiency of customs clearance, the State Food and Drug Administration
and the General Administration of Customs have further determined the name list of the specific ports permitting the entry of imported
drugs (Annex1)

In light of the Measures, the destinations of all the imported drugs (including narcotics and psychotropic drugs) shall fall within
the specified ports of the above-mentioned 18 cities.

In accordance with the need of import record keeping, the following 18 administrations of drugs are determined as port administrations
of drugs by the State Food and Drug Administration, that is, the drug administrations of Beijing, Tianjin, Shanghai, Dalian, Qingdao,
Chengdu, Wuhan, Chongqing, Xiamen, Nanjing, Hangzhou, Ningbo, Fuzhou, Guangzhou, Shenzhen, Zhuhai, Haikou and Xi’an. The addresses
and telephone numbers of the port drug administrations are indicated in Annex 2.

In accordance with the need of drug inspection, the State Food and Drug Administration shall authorize the National Institute for
the Control of Pharmaceutical and Biological Products, the drug inspection offices of Beijing, Tianjin, Shanghai, Dalian, Qingdao,
Chengdu, Wuhan, Chongqing, Xiamen and Guangzhou, and the drug inspection offices of Jiangsu Province, Zhejiang Province, Fujian Province,
Hainan Province, Guangdong Province and Shaanxi Province as the port drug inspection offices. The addresses and telephone numbers
of all port drug inspection offices are indicated in Annex 3.

All port drug administrations and port drug inspection offices shall, in accordance with the respective actual circumstances, determine
their respective jurisdictional scope and functions. Each of the port drug administrations shall, in accordance with the port within
its jurisdiction, form a working relationship with only one port drug inspection office of import record keeping and port inspection.
Their specific jurisdictional scope and functions shall be carried out in conformity with the Distribution Form of Drug Import Ports,
the Drug Inspection Administrations and Drug Inspection Offices under Centralized Management as formulated by the State Food and
Drug Administration. (Annex 4)

The new Catalogue of Import Drugs shall be promulgated by the State Food and Drug Administration along with the General Administration
of Customs. Before the new Catalogue is promulgated, the jurisdictional scope of import drugs shall be carried out in conformity
with Annex 1, namely the Import Drug Management Catalogue – in the Notice on the Several Issues concerning Strengthening the Administration
on Imported Drugs (GuoYaoGuoZhu [2002] No. 622).

The jurisdictional scope of narcotics and psychotropic drugs shall be still according to Annex 1, namely Catalogue of Narcotics under
Control and Annex 2, namely Catalogue of Psychotropic Drugs under Control in the Notice on the Relevant Issues concerning Intensifying
the Import and Export of Narcotics and Psychotropic Drugs (GuoYaoGuanZhu [2001] No. 585).

A uniform seal shall be used in the record-keeping of drug import, the name of which is “The Special Seal for the Drug Import Record
Keeping of Drug Administration”. The “Special Seal” shall be made by carving and issued by the State Food and Drug Administration,
which shall be used by a port drug administration in conducting the drug import record keeping. Among the special seals, “The Special
Seal for the Drug Import Record Keeping of the State Food and Drug Administration” held by the State Food and Drug Administration
shall be effective in all ports, through which drugs are permitted to import. The models of all seals are indicated in Annex 5.

For the commodities listed in the scope of commodity codes in the Catalogue of Imported Drugs, the customs shall conduct the procedures
for the customs declaration and clearance upon the strength of the Customs Clearance Permit for Imported Drugs sealed with the Special
Seal for the Drug Import Record Keeping of Drug Administration issued by the department authorized by the State Food and Drug Administration
and the relevant other instruments. The Customs Clearance Permit for Imported Drugs shall only be used by the port customs indicated
in the Customs Clearance Permit for Imported Drugs. The system of one permit for one batch shall be adopted and any modification
may not be made to the content in the permit. If it is necessary to modify the content of the permit, the permit shall be renewed
and reissued. The customs shall still implement the relevant regulations concerning the supervision over and administration of narcotics
and psychotropic drugs of the State Food and Drug Administration and the General Administration of Customs.

After the Measures come into effect, any of the aforesaid commodities, for which a customs declaration for import has been filed,
but the port drug administration refuses to offer Customs Clearance Permit for Imported Drugs, the customs may, upon the strength
of the applications of the consignees or agents, directly handle the formalities for returning the commodities according to the relevant
regulations.

10.

In light of Article 10 of the Measures, the destination shall be one of the ports specified as customs clearance ports in Beijing,
Shanghai and Guangzhou.

Where the biological products as provided in Article 10 of the Measures are vaccines, blood products and diagnostic reagents used
for blood screening (See Annex 6 for the catalogue), the State Food and Drug Administration shall, in accordance with the actual
circumstances, modify this catalogue in time.

11.

Considering the special requirements for the storage of the drugs listed in Annex 6, before the special warehouse of the customs are
determined, the temporary formalities for the import record keeping shall be carried out when these types of biological products
are imported. A port drug administration shall, after it receives an Application for the Inspection on Imported Drugs and the relevant
materials, conduct examination and inspection according to Article 16 of the Measures before issuing Customs Clearance Permit for
Imported Drugs and the special Notice on Port Inspection on Imported Drugs (See Annex 7). After the port drug inspection office has
taken samples, the port drug administration shall seal up all the drugs. The drugs may be unsealed and permitted to enter China to
be sold and used after the drugs are deemed as qualified upon inspection.

12.

With regard to the human serum albumin among the six types of biological products listed in Annex 6, the Drug Inspection Offices of
Beijing, Shanghai or Guangdong shall be responsible for taking samples and making port inspection in light of the different destinations
of the product. Where the destination of the other types is Beijing, the National Institute for the Control of Pharmaceutical and
Biological Products shall be responsible for taking samples and making port inspection. The port drug administration shall issue
a Notice on Port Inspection on Imported Drugs to the National Institute for the Control of Pharmaceutical and Biological Products.
Where the destination is Shanghai or Guangzhou, Shanghai Drug Inspection Office or the Drug Inspection Office of Guangdong Province
shall be responsible for taking samples, and the National Institute for the Control of Pharmaceutical and Biological Products shall
be responsible for the port inspection. The port drug administration shall issue a special Notice on Port Inspection on Imported
Drugs to Shanghai Drug Inspection Office or the Drug Inspection Office of Guangdong Province, which shall, within 2 days after it
has taken samples, send the samples to the National Institute for the Control of Pharmaceutical and Biological Products.

The State Food and Drug Administration shall, according to the port drug inspection offices’ capacities to test the biological products,
authorize them to undertake port inspection on other biological products. With regard to the biological products other than the circumstances
as prescribed in Article 10 of the Measures, the destination port drug inspection offices shall strictly conduct port inspection
in accordance with the registered standards of the imported drugs. In case a port drug inspection office lacks such inspection conditions
or capacities, it may entrust the National Institute for the Control of Pharmaceutical and Biological Products to conduct the inspection.

13.

The port drug administrations shall exercise the functions as prescribed in the Measures as of January 1st, 2004, shall formally accept
the applications for the drug import record keeping, and shall handle the relevant matters on the Customs Clearance Permit for Imported
Drugs. At the same time, the port drug inspection offices shall stop their former function of accepting inspection applications.
The import entities shall file applications to the port drug administrations for the drug import record keeping as of January 1st,
2004.

Where a Customs Clearance Permit for Imported Drugs issued prior to December 31st, 2003 is still within its valid period, it may be
used continuously. Where the valid period expires and the party concerned fails to go through the formalities for customs declaration
and clearance, the Customs Clearance Permit for Imported Drugs shall be replaced by a new one in the port drug administration.

14.

With a view to ensuring the quality and standardization of the work of drug import record keeping, the State Food and Drug Administration
has formulated the Guidelines for Drug Import Record Keeping (Annex 8), all port drug administrations shall comply with them in doing
the specific work of drug import record keeping.

15.

Drug import record keeping is a new task undertaken by all port drug administrations. All port drug administrations shall study the
relevant laws, regulations and knowledge, and shall in time submit to the State Food and Drug Administration the problems found in
handling import record keeping. The port drug administrations and the customs shall strengthen the communication, coordination and
cooperation between them, and ensure that the work of import record keeping run smoothly.

16.

The provisions on the examination and approval of the import of preventive biological products and blood products as prescribed in
the Administrative Measures for Imported Drugs shall be repealed as of January 1st, 2004.

17.

The Notice on Intensifying the Administration on the Import of Drugs (GuoYaoGuanZhu [2002] No. 622) and the Notice on Distributing
the Notice of the State Food and Drug Administration on the Relevant Problems concerning Strengthening the Administration on the
Import of Drugs (ShuFa [2001] No. 71) shall be repealed as of January 1st, 2004.

Please implement the above-mentioned provisions.

Annexes:

The Name List of Drug Import Ports (Omitted)

The Name List of the Port Drug Administrations (Omitted)

The Name List of the Port Drug Inspection Offices (Omitted)

The Distribution Form of Drug Import Ports, the Drug Inspection Administrations and Drug Inspection Offices under Centralized Management
(Omitted)

The Styles of the Special Seals for Drug Import Record Keeping (Omitted)

The Catalogue of the Biological Products Proscribed by the State Food and Drug Administration (Omitted)

Notices on Port Inspection on Imported Drugs (Omitted)

Guidelines for the Drug Import Record Keeping (Omitted)

State Food and Drug Administration
2003-11-19

MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

e02176

Ministry of Culture, Ministry of Commerce

Order of Ministry of Culture, Ministry of Commerce of the People’s Republic of China

No. 28

Measures for Administration of Chinese-foreign Cooperative Audio-video Product Distribution Enterprises are hereby promulgated and
shall come into force as of January 1, 2004. Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises
promulgated on December 10, 2001 shall be repealed concurrently.

Sun JiaZheng, Minister of Ministry of Culture

Lu FuYuan, Minister of Ministry of Commerce

December 8th, 2003

Measures for Administration of Chinese-foreign Cooperative Distribution Enterprises

Article 1

The present Measures are hereby formulated in accordance with the law of the People’s Republic of China on Chinese-foreign Cooperative
Enterprises, the Regulations on the Administration of Audio-video Products and other laws and regulations for the purpose of enlarging
foreign culture exchange and economic cooperation as well as strengthening the administration on Chinese-foreign Cooperative Audio-video
products distribution enterprises.

Article 2

The present Measures shall be applicable to the Chinese-foreign cooperative audio-video product distribution enterprises established
in the territory of china.

The term of Chinese-foreign cooperative audio-video product enterprise refers to, in light of the principles of equality and mutual
benefits, upon the approval of relevant departments of the Chinese government, foreign enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign cooperator) cooperatively established inside the territory of the People’s
Republic of China with Chinese enterprises and other economic organizations (hereinafter referred to as the Chinese cooperators)to
engage in the business of wholesale, retail and lease of the audio-video products.

The term “the audio-video products” refers to audio tapes, video tapes, gramophone records, laser audio discs, and laser video discs,
etc. on which contents are recorded.

Article 3

The Chinese-foreign cooperative audio-video product distribution enterprise must abide by the related laws and regulations, and disperse
thoughts, ethics, science and technology, cultural knowledge that are beneficial to the development of economy and the social progress.

Article 4

The legitimate business activities of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises and the legitimate
rights and interests of the cooperators shall be subject to the protection of Chinese law.

Article 5

Ministry of Culture and Ministry of Commerce, as well as their authorized competent departments of culture and commerce at the provincial
level shall be responsible for the examination and approval of and supervision over the Chinese-foreign cooperative audio-video product
distribution enterprises.

The responsible departments of culture and the responsible departments of commerce of the local people’s governments at the county
level or above shall, in accordance with separate functions and duties, be responsible for the everyday supervision and administration
for the Chinese-foreign cooperative audio-video product distribution enterprises within their own administrative regions.

Article 6

The establishment and development of the Chinese-foreign cooperative Audio-video Product Distribution Enterprises shall follow the
development planning of the market of the audio-video market.

Article 7

The Chinese cooperator and foreign cooperator applying for establishing a Chinese-foreign cooperative audio-video product distribution
enterprises shall have the corresponding capacity for establishing the audio-video product distribution enterprises; and shall be
capable for bearing the civil responsibility independently and have no illegal records during the three consecutive years before
the application.

Article 8

The Chinese-foreign cooperative audio-video product distribution enterprises shall meet the following conditions:

(1)

Having independent status as a legal person;

(2)

Meeting the requirements of the state on the establishment of the audio-video product distribution enterprises;

(3)

Having funds adequate to its operation scale;

(4)

The equity owned by the Chinese cooperator is no less than 51 percent; and

(5)

The term of cooperation shall not exceed 15 years.

Article 9

Where Chinese-foreign cooperative audio-video product distribution enterprises apply for engaging in the chain operation of the audio-video
products or for operating the audio-video products by using the information in network, it shall go through the procedures for examination
and approval in accordance with the provisions of the state on the chain operation of the audio-video products and on operating the
audio-video products by using the information in network.

Article 10

Where a Chinese cooperator takes the stated owned assets as cooperated term, it shall get the approval of the superior state-owned
assets supervision and administration departments, in accordance with the related provisions of the evaluation and administration
for the stated-owned assets, and the evaluation institution specified by the state-owned assets supervision and administration departments
shall valuate for the stated-owned assets as the cooperated term. The valuation result shall be defined by the corresponding state-owned
assets supervision and administration departments in accordance with the provisions of the administration of state-owned assets.

Article 11

The establishment of the Chinese-foreign cooperative audio-video product distribution enterprises of audio-video products engaging
in the wholesale business of the audio-video products shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the province, autonomous regions and municipalities
directly under the Central Government where the distribution Chinese-foreign cooperative Audio-video Product Distribution Enterprises
of audio-video products to be established, and the mentioned above departments shall submit to Ministry of Commerce for making program,
examination and approval. Ministry of Culture shall make the decision of approval or not within 30 working days; the reason thereof
shall be stated in writing if the application is not approved.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by Ministry of Culture, apply
to the competent departments of commerce of the province, autonomous regions and municipalities directly under the Central Government
where the audio-video product distribution enterprises to be established is located for the establishment of such an enterprise.
The mentioned above departments shall submit to Ministry of Commerce for examination and approval after its check and approval. Ministry
of Commerce shall make a decision of approval or not within 30 working days. Upon the approval, an Approval Certificate for Enterprise
with Foreign Investment shall be issued to the applicant. If not, the reasons thereof shall be stated in writing.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprise with Foreign Investment
issued by the Ministry of Commerce, apply to the Ministry of Culture on behalf of the Chinese-foreign cooperative audio-video product
distribution enterprises to be established for the Operation Permit for Audio-video Products upon strength of the approval documents
on project initiation issued by the Ministry of Culture and the Approval Certificate for Enterprises with Foreign Investment issued
by the Ministry of Commerce.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by Ministry
of Culture, and upon strength of the Operation Permit for Audio-video Products and the Approval Certificate for Enterprise with Foreign
Investment, go through the registration procedures and obtain the Business License of an Enterprise Legal Person in compliance with
the provisions of the administration for industry and commerce.

Article 12

the Chinese cooperator shall submit the following documents to Ministry of Culture while proposing the application for project initiation:

(1)

The application for project initiation which shall specify the name, address, scope of business, the source of the invested funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals and feasibility study report programmed and admitted commonly by both/all cooperator;

(3)

The business license or certification of registration, certification of qualification by every cooperated cooperator and the valid
certification of the legal representatives;

(4)

The appraisal and confirming documents issued by the state-owned assets administration departments of the state-owned assets to be
invested by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation); and

(5)

Other documents as required by Ministry of Culture.

Article 13

the Chinese cooperator shall submit the following documents to Ministry of Commerce while proposing the application for establishing
the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment;

(2)

A project proposals or feasibility study report programmed and admitted commonly by every cooperated cooperator, and approved by Ministry
of Culture;

(3)

The approval documents for project initiation of the cooperation project issued by Ministry of Culture

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established
signed by the representatives authorized by both/all cooperators;

(5)

The confirming documents issued by the state-owned assets administration departments of the state-owned assets on appraising report
of the state-owned assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets
as a means of cooperation);

(6)

The cooperators business license or certification of registration, credit certificates and the valid certificates of the legal representatives;

(7)

The notice of pre-approval for the name of the cooperative enterprise to be established;

(8)

The name list of the chairman, vice chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprises, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by Ministry of Commerce.

Article 14

In case of any major change of Chinese-foreign cooperative audio-video product distribution enterprises, such as change of the investors,
adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change of scope
of business, change of operational period, or change of establishment of the branches, the enterprise shall go through the procedures
for approval in accordance with Article 11 of the present Measures.

Other changes of the Chinese-foreign cooperative audio-video product distribution enterprises shall, in accordance with related provisions
of the foreign investment enterprises, be submitted to the Ministry of Commerce for approval or record. In the case of the change
of legal address, legal representative, the main responsible person and termination of the business activity due to expiry of operational
period, the Chinese-foreign cooperative audio-video product distribution enterprises shall also report to Ministry of Culture for
record within 30 days.

Article 15

The establishment of a Chinese-foreign cooperative audio-video product distribution enterprises that engages in the retail and leasing
business, shall be handled in accordance with the following procedures:

(1)

The Chinese cooperator shall apply to the competent departments of culture at the level of province where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located, and then the competent departments of culture shall make
the decision on whether to approve the project initiation within 30 working days; if the application is rejected, the reasons for
it shall be stated in writing.

(2)

The Chinese cooperator shall, within 6 months as of the date when the project initiation is approved by the competent departments
of culture at provincial level, apply to the competent departments of commerce at provincial level where the Chinese-foreign cooperative
audio-video product distribution enterprises to be established is located for the establishment of such an enterprise, and then the
competent departments of commerce at provincial level shall, within 30 working days, make a decision on whether to approve or not;
the reason for it shall be stated in writing explanation if the application is rejected.

(3)

The Chinese cooperator shall, within 30 days as of the date of receiving the Approval Certificate for Enterprises with Foreign Investment
issued by the competent departments of Commerce at the provincial level, apply to the competent department of culture at the provincial
level on behalf of the Chinese-foreign cooperative audio-video product distribution enterprise to be established for the Operation
Permit for Audio-video Products upon strength of the approval documents on project initiation issued by the competent department
of culture at the provincial level and the Approval Certificate for Enterprises with Foreign Investment issued by the competent department
of commerce at the provincial level.

(4)

The Chinese cooperator shall, within 30 days as of the date of receiving the Operation Permit for Audio-video Products issued by the
competent departments of culture at provincial level, and upon strength of the Operation Permit for Audio-video Products and the
Approval Certificate for Enterprises with Foreign Investment, go through the registration procedures and obtain the Business License
of an Enterprise Legal Person in compliance with the provisions on the industry and commerce administration,

Article 16

The Chinese cooperator shall submit the following documents to the competent departments of culture at the provincial level while
proposing the application for project initiation:

(1)

The application for project initiation, which shall specify the name, address, scope of business, the source of the investment funds
and its amount of the Chinese-foreign cooperative audio-video product distribution enterprises to be established;

(2)

The project proposals or feasibility study report worked out or recognized by both/all cooperators;

(3)

The business license or certificates of registration, credit certificates of every cooperator and the valid certificates of the legal
representatives;

(4)

The confirmation documents issued by the administrative departments of the state-owned assets on the appraising report of state-owned
assets to be used as investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a means of cooperation);
and

(5)

Other documents as required by the competent departments of culture at the provincial level.

Article 17

The Chinese cooperator shall submit the following documents to the competent departments of commerce at provincial level while proposing
the application for establishing the Chinese-foreign cooperative audio-video product distribution enterprises:

(1)

An application for establishment:

(2)

A project proposals and feasibility study report worked out and recognized by both/all cooperators, and approved by the competent
departments of commerce at the provincial level;

(3)

The approval documents on project initiation under cooperation issued by the competent departments of commerce at the provincial level;

(4)

The contract and articles of association of the Chinese-foreign cooperative audio-video product distribution enterprises to be established,
which are executed by the representatives authorized by both/all cooperators.

(5)

The confirmation documents issued by the state-owned assets administration departments on the appraising report and the state-owned
assets to be used as a means of investment by the Chinese cooperator (if the Chinese cooperator take the state-owned assets as a
means of investment);

(6)

The business license or registration certificates, credit certificates of the cooperators and the valid certificates of the legal
representative;

(7)

The notice of pre-approval for the name of the cooperative enterprises to be established;

(8)

The name list of the chairmen, vice-chairmen and members of the board of directors or of the joint management committee of the cooperative
enterprise, which is determined by both/all cooperators through negotiation; and

(9)

Other documents as required by the competent departments of commerce at the level of province.

Article 18

In case of any major change in a Chinese-foreign cooperative audio-video product retail or leasing enterprises, including change of
any investor, adjustment of the interest proportion of the investors, change of the investment amount or means of cooperation, change
of the business scope, change of the operational period or the establishment of the branches, the enterprise shall go through the
procedures for approval in accordance with article 15 of the Measures hereby.

In the case of other changes of the Chinese-foreign cooperative audio-video product distribution enterprises, the enterprise shall,
in accordance with related provisions of the enterprises with foreign investment, report to the competent departments of commerce
at the provincial level for approval or record.

In the case of the change of legal address, legal representative, the main responsible person and termination of the business activity
due to expiry of operational period, the Chinese-foreign cooperative audio-video product distribution enterprises shall report to
the competent departments of culture at the provincial level for putting on records within 30 days.

Article 19

The Chinese-foreign cooperative audio-video product distribution enterprises shall engage in the business activities of audio-video
products within the approved scope of business.

Article 20

No Chinese-foreign cooperative audio-video product distribution enterprises may operate any audio-video products, which contains any
contents prohibited by the state from being dispersed; or which is published by non audio-video publishing entities or reproduced
by non audio-video product reproducing entities; or which is imported without the approval of Ministry of Culture; or which infringes
on the copyright of others.

Article 21

No Chinese-foreign cooperative audio-video product distribution enterprises may engage in the business of importing the audio-video
products

Article 22

Whoever, without the approval of the Ministry of Culture and the Ministry of Commerce and without authorization, establishes Chinese-foreign
cooperative audio-video product distribution enterprises, or engages in the business of distributing audio-video products with foreign
investment without approval, shall be punished by related departments of the state according to law. And the relevant person liable
shall be prosecuted for liabilities.

Article 23

Where the investors of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan of China establish
the distribution Chinese-foreign cooperative audio-video product distribution enterprises of the audio-video products within other
provinces, autonomous regions and municipalities directly under the Central Government, it shall implement by reference to the present
measures hereby.

Article 24

The power to interpret the present measures remains with the Ministry of Commerce and Ministry of Culture.

Article 25

The present measures and the annexes shall be effective as of the date of January 1, 2004; The administrative measures of Chinese-foreign
cooperative audio-video product distribution enterprises promulgated on December 10, 2001 by Ministry of Culture and Ministry of
Foreign Trade and Economic Cooperation shall be repealed simultaneously.

Annex:

In order to promote closer economic and trade relations between Hong Kong, Macao and the mainland, and encourage the service providers
in Hong Kong and Macao to establish the audio-video product distribution enterprises in the mainland, in accordance with the arrange
on establishing closer economic and trade relations between Hong Kong and the mainland, as well as the arrange on establishing closer
economic and trade relations between Macao and the mainland upon the approval of the State Council, the following special provisions
shall be made hereby on the related issues that the service providers in Hong Kong and Macao to establish the audio-video product
distribution enterprises prescribed by measures for administration of distribution Chinese-foreign cooperative audio-video product
distribution enterprises.

From the date of January 1, 2004, the providers with service in Hong Kong and Macao are permitted to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the form of equity joint ventures in the mainland.

The providers with service in Hong Kong and Macao may possess the majority of the shareholders, but not more than 70 percent.

The providers with service in Hong Kong and Macao may possess the proportion of rights and interests not more than 70 percent in the
contractual joint ventures.

Other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign cooperative audio-video product
distribution enterprises in the mainland shall be governed by administrative measures of Chinese-foreign cooperative audio-video
product distribution enterprises. While other provisions on the providers with service in Hong Kong and Macao to establish the Chinese-foreign
cooperative audio-video product distribution enterprises in the mainland shall be implemented by reference to administrative measures
of Chinese-foreign cooperative audio-video product distribution enterprises.

The service providers in Hong Kong and Macao defined in the provisions shall comply with the requests of related provisions and the
definition specified by the arrange on establishing closer economic and trade relations between Hong Kong and the mainland, as well
as the arrange on establishing closer economic and trade relations between Macao and the mainland separately.

The present provisions shall be interpreted by Ministry of Commerce and Ministry of Culture in accordance with respective functions.

Ministry of Culture, Ministry of Commerce
2003-12-08

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON AUDIT OF E-INFORMATION OF SPECIAL TAX RECEIPT OF EXPORTS

State Administration of Taxation

Circular of the State Administration of Taxation on Audit of E-information of Special Tax Receipt of Exports

No.1392 [2003] of State Administration of Taxation

December 30, 2003

The departments and offices of all the provinces, autonomous regions, municipalities directly under the Central Government, and cities
under separate State Planning:

In order to ensure the implement of the spirit of the provision promulgated on reform of the export refunds by the State Council and
to increase the efficiency of the audit of export refunds, the State Administration of Taxation decided to, on the base of the improvement
and stable functioning of the second phase of the Gold-tax project, cancel the audit of the E- information of the special tax warrant
of exports and the list of tax payment certificate (hereinafter referred to as special tax receipt )when the competent tax authorities
run the audit procedure of the export refunds of the exports declared at the custom after the date of January 1, 2004(subject to
the date signed in the Bill of Entry) except the items listed in the Article 2 of this circular. We hereby give our notice as follows
regarding the concerning matters:

To the exports declared at the custom after January 1, 2004, the competent tax authorities shall, in the course of running the audit
procedure of export refunds, verify the exports bill of entry, the foreign exchange acceptance verification in export trade, VAT
invoice and other paper documents and the related E-information for export refunds and shall verify the paper documents of the special
tax receipt despite the E-information of it.

To the following listed 3 sorts of exports, the competent export refunds authorities shall verify the special tax receipt declared
by the export units and the E-information from the State Administration of Taxation simultaneously. The procedures of export refunds
shall be run follow the current provisions after the verification.

(1)

The VAT invoice was made before August 1, 2003,

(2)

The VAT invoice or the normal invoice of purchasing is out of the scope of supervision system of the VAT control and audit

(3)

consumption tax deduct

From January 1, 2004, the competent tax authorities charging the offering companies shall not type in the E-information of the special
tax receipt to the goods that the offering units make VAT invoice using VAT anti-forging and control system for the export units.
The competent tax authorities charging the offering companies shall type in and upload the E-information of the special tax receipt
of the VAT invoice, the normal invoice out of the scope of the supervision system of the VAT control and audit and the goods the
shall pay the consumption tax. The State Administration of Taxation will set out the E-information of the mentioned special tax receipt
monthly.

The time of revoking the paper documents of special tax receipt shall be notified separately later.

State Administration of Taxation
2003-12-30

1...20 2122Page 22 of 22

Russia Laws

The basic law

Concluding and Transitional Provisions

CIRCULAR OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION ON THE RELATED ISSUES CONCERNING THE HANDLING OF CONFIRMATION LETTERS ON DOMESTIC AND FOREIGN-FUNDED PROJECTS ENCOURAGED BY THE STATE FOR DOMESTIC PROJECTS

NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE ADMINISTRATION OF FOREIGN EXCHANGE IN BORDER TRADE

PROVISIONS ON THE ANTIDUMPING INVESTIGATION OF INDUSTRY INJURY

NOTICE OF THE STATE FOOD AND DRUG ADMINISTRATION ON THE ISSUES CONCERNING THE IMPLEMENTATION OF THE ADMINISTRATIVE MEASURES FOR THE IMPORT OF DRUGS

MEASURES FOR ADMINISTRATION OF CHINESE-FOREIGN COOPERATIVE DISTRIBUTION ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON AUDIT OF E-INFORMATION OF SPECIAL TAX RECEIPT OF EXPORTS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7