REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CERTIFICATION AND ACCREDITATION

The State Council

Order of the State Council of the People’s Republic of China

No. 390

The Regulations of the People’s Republic of China on Certification and Accreditation, which have been adopted at the 18th executive
meeting of the State Council on August 20, 2003, are hereby promulgated, and shall be implemented as of November 1, 2003.

Wen Jiabao, Premier of the State Council

September 3, 2003

Regulations of the People’s Republic of China on Certification and Accreditation

Chapter I General Principles

Article 1

The present Regulations are hereby formulated With a view to regulating the certification and accreditation activities, improving
the quality of products and services and the level of administration, as well as promoting the economic and social development.

Article 2

The term “certification” as mentioned in the present Regulations refers to the assessment activities carried out by the certification
bodies to testify whether or not the products, services, and management systems are in conformity with the relevant technical norms
and their compulsive requirements or standards.

The term “accreditation” as mentioned in the present Regulations refers to the assessment activities carried out by the accreditation
bodies to recognize the capabilities and qualifications of the certification bodies, inspection organizations and laboratories, and
practicing personnel engaging in such certification activities as the appraisal and examination, etc.

Article 3

Where the certification and accreditation activities are undertaken within the territory of the People’s Republic of China, the present
Regulations shall be observed.

Article 4

The State shall implement a uniform certification and accreditation supervision system.

The State shall apply the working mechanism on certification and accreditation under which all the relevant departments shall implement
the work together under the uniform administration, supervision and comprehensive coordination of the certification and accreditation
administration department of the State Council.

Article 5

The certification and accreditation administration department of the State Council shall strengthen the supervision over and administration
of the activities of the certification training institutions and certification consultation institutions in accordance with the law.

Article 6

The principles of impersonality and independence, openness and justice, and good faith shall be observed in carrying out the certification
and accreditation activities.

Article 7

The State encourages the international mutual recognition activities of certification and accreditation to be carried out on the basis
of equality and mutual benefits. The international mutual recognition activities of certification and accreditation shall not impair
the national security and public interests.

Article 8

The organizations and persons undertaking the certification and accreditation activities shall have the duty to keep the state secrets
and commercial secrets as they well know confidential.

Chapter II Certification Bodies

Article 9

The establishment of a certification body shall be approved by the certification and accreditation administration department of the
State Council, and the certification activities shall be carried out within the scope of approval after the qualification of a legal
entity has been obtained.

Any entity or person may not undertake certification activities without approval.

Article 10

The establishment of a certification body shall meet the conditions as follows:

Having a fixed location and the necessary facilities;

Having an administration system in conformity with the requirements of certification and accreditation;

The registered capital shall not be less than RMB 3 million Yuan; and

There are more than 10 full time certification personnel in the corresponding fields.

Certification bodies undertaking product certification activities shall possess such technical capability for examination and inspection
in conformity with the relevant product certification activities in addition.

Article 11

The establishment of certification bodies with foreign investment shall conform to the following conditions, besides those prescribed
in Article 10 of the present Regulations;

The foreign investors shall have obtained the accreditation of the accreditation organizations in their own countries or districts;

The foreign investors shall have experiences of engaging in certification activities for more than 3 years.

The application, approval and registration for the establishment of certification bodies with foreign investment shall be handled
pursuant to the relevant foreign investment laws, administrative regulations and the pertinent provisions of the State.

Article 12

The procedures for the application and approval of the establishment of a certification body:

The applicants for the establishment of a certification body shall file an application in written form to the certification and accreditation
administration department of the State Council, and shall submit certification documents in conformity with Article 10 of the present
Regulations;

The certification and supervision administration department of the State Council shall, within 90 days as of accepting the application
for the establishment of a certification body, make decisions on whether to approve or not. Where the approval has to do with the
responsibility of the relevant departments of the State Council, the opinions of whom shall be solicited. Where the approval is to
be granted, the document of approval shall be issued to the applicants; where the approval is not to be granted, the applicants shall
be notified in written form and the reason shall be explained; and

The applicants shall go through the registration procedures according to law in accordance with the document of approval issued by
the certification and accreditation administration department of the State Council.

The certification and accreditation administration departments of the State Council shall publicize the directories of the legally
established certification bodies.

Article 13

The representative agency of a foreign certification organization within the territory of the People’s Republic of China shall be
established upon approval, and it may not undertake the popularization activities with respect to the business scope of the organization
it is subordinated after going through the registration procedures at the administration departments for industry and commerce according
to law, but it may not carry out the certification activities.

The application, approval and registration of the representative agency established within the territory of the People’s Republic
of China by the foreign certification organization shall be handled pursuant to the relevant foreign investment laws, administrative
regulations and the pertinent provisions of the State.

Article 14

The certification bodies may not have interests relations of any kind with the administrative departments.

The certification bodies may not accept any grants that may influence the impersonality and justice of the certification activities;
and may not undertake any such activities that may influence the impersonality and justice of the certification activities as the
development and sale of the products, etc.

The certification bodies may not have interests relations of any kind with the certification clients in such aspects as capital and
management.

Article 15

The persons undertaking the certification activities shall practice in one certification body, and are prohibited from practicing
in more than two certification bodies at the same time.

Article 16

The inspection organizations and the laboratories that issue to the public the data and results, which have the function of verification,
shall possess the basic conditions and capabilities as required by the relevant laws and administrative regulations, and may carry
out the relative activities after being recognized in accordance with the law. The results of the accreditation shall be publicized
by the certification and accreditation administration department of the State Council.

Chapter III Certification

Article 17

The State shall popularize the certification on products, services and management systems conforming to the requirements of the economic
and social development.

Article 18

The certification bodies shall carry out the certification activities in light of the basic certification standards and certification
rules, which shall be formulated by the certification and accreditation administration department of the State Council; where the
standards and rules have to do with the functions of the relative departments of the State Council, they shall be formulated by the
certification and accreditation administration department of the State Council together with the relative departments of the State
Council.

Where the certification is in a new field, and no corresponding certification rules have been formulated by the departments as mentioned
in the preceding paragraph, the certification bodies may make certification rules by themselves, which shall be put on records at
the certification and accreditation administration department of the State Council.

Article 19

Any legal entity, organization or individual may entrust a certification body legally established of his own accord to make the certification
on products, services and management systems.

Article 20

No certification bodies may refuse to provide the certification services within the business scope of their own certification bodies
for the reason that the clients fail to take part in the certification consultation or certification training, etc., nor may they
put forward to the clients the requirements or restricted conditions irrespective to the certification activities.

Article 21

The certification bodies shall make public such information as the basic certification standards, certification rules and charging
standards, etc.

Article 22

The certification bodies and the inspection organizations with regard to certification, as well as the laboratories shall, when carrying
out the certification activities and inspection and examination activities with regard to certification, complete the procedures
as prescribed in the basic certification standards and certification rules, in order to ensure the integrity, impersonality and truthfulness
of the certification, inspection and examination, no procedures may be increased, reduced, or omitted.

The certification bodies and inspection organizations with regard to certification, as well as the laboratories shall make full records
on the process of certification, inspection and examination, which shall be kept on file for future reference.

Article 23

The certification bodies and their personnel shall make the certification conclusions in time, and ensure the impersonality and truthfulness
of the certification conclusions, which shall then be subscribed by the person responsible for the certification bodies after being
signed by the certification personnel.

The certification bodies and their personnel shall be responsible for the certification conclusions.

Article 24

Where the products, services, and the management systems are certified as in conformity with the requirements of certification by
the certification conclusions, the certification bodies shall issue the certificate to the clients in good time.

Article 25

Those who have obtained the certificates shall use the certificates and certification marks within the certification scope. No entity
may, by using the product and service certificates, certification marks and the relative characters and symbols, mislead the public
to believe that their management systems have passed the certification; or mislead the public to believe that their products and
services have passed the certification by using the administration system certificates, certification marks and the relative characters
and symbols.

Article 26

The certification bodies may formulate the certification marks by themselves and put them on records at the certification and accreditation
administration department of the State Council.

No style, character or name of the certification marks formulated by the certification bodies themselves may violate the provisions
of laws and administrative regulations, nor may they be the same as or similar to the certification marks already popularized by
the State, nor may they impede social administration, or impair social morals or customs.

Article 27

The certification bodies shall carry out effective following-up investigations on the products, services and management systems certified
by them. Where the products, services and management systems that have been certified fail to meet the requirements of the certification
continuously, the certification bodies shall suspend their use and even revoke the certificates, and make that public.

Article 28

With a view to safeguarding the national security, preventing fraudulent acts, protecting the health or safety of human body, safeguarding
the life or health of animals and plants, and protecting the environments, no products, which must be certified as prescribed by
the State, may leave the factory, or may be sold, imported or used in other business activities until after being certified and labeled
with the certification marks.

Article 29

The State shall, for those products that must be certified, unify the catalogues of products, the compulsive requirements, standards
and conformity assessment procedures of the technical norms, and the marks, as well as the charging standards.

The uniform catalogues of products (hereinafter refers to as the Catalogues) shall be formulated and adjusted jointly by the certification
and accreditation administration department of the State Council and the relevant departments of the State Council, and shall be
publicized by the certification and accreditation administration department of the State Council, and implemented jointly by the
relative departments and institutions.

Article 30

The products listed in the Catalogues must be certified by the certification bodies as designated by the certification and accreditation
administration department of the State Council.

The certification marks of the products listed in the Catalogues shall be prescribed uniformly by the certification and accreditation
administration department of the State Council.

Article 31

Where the products listed in the Catalogues have to do with the catalogues of the import and export commodities inspection, the inspection
procedures shall be simplified when the import and export commodities inspections are made on them.

Article 32

The accreditation bodies, inspection organizations with regard to certification, and the laboratories as confirmed by the certification
and accreditation administration department of the State Council to undertake the certification of products as listed in the Catalogues
(hereinafter referred to as the confirmed certification bodies, inspection organizations, and laboratories) shall be those who have
been undertaking the relative businesses for a long time, have no bad records, and have obtained the accreditation and have the ability
to carry out the relative certification activities according to the present Regulations. When the certification and accreditation
administration department of the State Council is confirming the certification bodies that are to engage in the activities of product
certification as listed in the Catalogues, it shall ensure that at least two bodies that meet the requirements of the present Regulations
are confirmed in each field of products as listed in the Catalogues.

Where the certification and accreditation administration department of the State Council is confirming the certification bodies, inspection
organizations, and laboratories as prescribed in the preceding paragraph, it shall publicize, in advance, the relative information
and organize the recognized experts in the relative fields to form an expert evaluation committee to make evaluations on the certification
bodies, inspection organizations and laboratories that meet the requirements of the preceding paragraph; after the evaluation is
made and the opinions of the relative departments of the State Council is solicited, it shall make the decisions in light of the
principles of making full use of the resources, fair competition, convenience and effectiveness within the time limit of publication.

Article 33

The certification and accreditation administration department of the State Council shall make public the directories of the confirmed
certification bodies, inspection organizations and laboratories, as well as the confirmed business scopes.

No organizations may undertake the certification on the products as listed in the Catalogues, and the examination and inspection activities
in relation to certification without approval.

Article 34

All producers or sellers, and importers of products as listed in the Catalogues may entrust confirmed certification bodies of themselves
to make the certifications.

Article 35

The confirmed certification bodies, inspection organizations and laboratories shall provide convenient and timely services on certification,
examination and inspection within the confirmed business scope. They may not delay, discriminate and create difficulties for the
clients, or seek for improper interests.

Any confirmed certification bodies may not transfer the confirmed certification business to other organizations.

Article 36

The confirmed certification bodies, inspection organizations and laboratories shall carry out the international mutual recognition
activities within the framework of international mutual recognition agreements signed between the certification and accreditation
administration department of the State Council or the relevant authorized departments of the State Council and the foreign countries.

Chapter IV Accreditation

Article 37

The accreditation bodies designated by the certification and accreditation administration department of the State Council (hereinafter
referred to as the “accreditation bodies”) shall carry out the accreditation activities independently.

Any entity other than the accreditation body may not undertake the accreditation activities directly or in a disguised form, the accreditation
result concerned is invalid.

Article 38

The certification bodies, inspection organizations, and laboratories may, through the accreditation made by the accreditation bodies,
keep their capabilities of certification, examination and inspection conforming to the requirements of accreditation continuously
and steadily.

Article 39

The personnel engaging in such certification activities as the appraisal and examination, etc., may not carry out the certification
activities accordingly until being registered by the accreditation bodies.

Article 40

The accreditation bodies shall have the quality system in conformity with their scope of accreditation, and establish the internal
examination system to ensure the implementation of quality system effectively.

Article 41

The accreditation bodies may, according to the requirements of accreditation, select and retain personnel engaging in the accreditation
evaluation activities, who are experts in the relative fields, familiar with the relative laws, administrative regulations and accreditation
rules and procedures, and have good moral character, special knowledge and business ability required for making the evaluation.

Article 42

Where the accreditation bodies entrust others to complete the specific appraisal business in relation to accreditation, they shall
be responsible for the appraisal conclusion.

Article 43

The accreditation bodies shall publicize such information as the conditions, procedures of the accreditation, and the charging standards.

The accreditation bodies may not, when accepting the accreditation applications, propose requirements or restricted conditions irrespective
to the accreditation activities.

Article 44

The accreditation bodies shall complete the evaluation on the certification bodies, inspection organizations and laboratories within
the time limit publicized, in light of the State standards and the provisions of the certification and accreditation administration
department of the State Council, and make decisions on whether or not to grant the accreditation, as well as make full reports on
the accreditation process and put them on record. The accreditation bodies shall ensure the impersonality, justice, integrity and
effectiveness of the accreditation, and shall be responsible for the accreditation conclusions.

The accreditation bodies shall issue the accreditation certificates to the certification bodies, inspection organizations and laboratories
having obtained the accreditation, and have the directories of them publicized.

Article 45

The accreditation bodies shall, in light of the State standards and the provisions of the certification and accreditation administration
department of the State Council, make examinations on the personnel engaging in such certification activities as evaluation and examination,
and make registration for those who pass the examination.

Article 46

The accreditation certificates shall include the scope, standards and fields of accreditation and the period of validity.

The format of the accreditation certificate and the style of the accreditation mark shall be approved by the certification and accreditation
administration department of the State Council.

Article 47

The organizations who have obtained the accreditation shall use the accreditation certificates and marks within the scope of the accreditation
obtained. Where the organizations those have obtained the accreditation use the accreditation certificates and marks improperly,
the accreditation bodies shall suspend the use of the accreditation certificates or even revoke them, and make that public.

Article 48

The accreditation bodies shall implement effective following-up supervision over the organizations or personnel that have obtained
the accreditation, and make re-evaluation periodically on the organizations that have obtained the accreditation, in order to validate
their continuous conformity with the accreditation requirements. Once an organization or person that has obtained the accreditation
no longer meets the accreditation requirements, the accreditation bodies shall revoke their accreditation certificates and make that
public.

The changes in relation to the accreditation requirements as the practicing personnel and the primary responsible person of the organizations
that have obtained the accreditation, their facilities, certification rules formulated by themselves, etc., shall be notified to
the accreditation bodies in good time.

Article 49

Any accreditation bodies may not accept any grants that may influence the impersonality and justice of the accreditation activities.

Article 50

The certification bodies, inspection organizations and laboratories within China, who have obtained the accreditation from foreign
accreditation bodies, shall put that on record at the certification and accreditation administration department of the State Council.

Chapter V Supervision and Administration

Article 51

The certification and accreditation administration department of the State Council shall make supervisions over the certified enterprises
by way of organizing the experts of the same industry to appraise through discussion, soliciting opinions from the certified enterprises,
and making spot-check on the certification activities and certification results, as well as demanding the certification bodies, inspection
organizations, and laboratories in relation to certification to make report on their business activities. In case any act in violation
of the present Regulations shall be investigated into and solved in time, and where the illicit act has to do with the function of
the relative departments of the State Council, the relevant departments shall be informed in time.

Article 52

The certification and accreditation administration department of the State Council shall supervise the confirmed certification bodies,
inspection organizations and laboratories, and inspect their certification periodically or aperiodically, examination and inspection
activities. The confirmed certification bodies, inspection organizations and laboratories shall submit reports periodically to the
certification and accreditation administration department of the State Council, and shall be responsible for the authenticity of
the report. The conditions of certification, inspection and examination on the products listed in the Catalogues shall be explained
in the report.

Article 53

The accreditation bodies shall submit reports periodically to the certification and accreditation administration department of the
State Council, and shall be responsible for the authenticity of the report; there in the report shall be explanations on such conditions
as the implementation of accreditation systems by the accreditation bodies, the undertaking of the accreditation activities and the
work done by the practicing personnel.

The certification and accreditation administration department of the State Council shall make appraisal on the report submitted by
the accreditation bodies, and make supervisions over the accreditation bodies by way of referring to the file data of accreditation,
and inquiring the information from the relative persons.

Article 54

The certification and accreditation administration department of the State Council may, in light of the needs of supervision of the
certification and accreditation, ask the primary responsible persons of the accreditation bodies, certification bodies, inspection
organizations, and the laboratories for information about the relative matters, and give them instructions to correct, and the relative
personnel shall cooperate actively.

Article 55

The quality and technology supervision departments of all provinces, autonomous regions, and municipalities directly under the Central
Government, and the institutions of entry-exit inspection and quarantine established by the departments of the State Council for
quality supervision, inspection and quarantine, shall, pursuant to the present regulations, supervise the accreditation activities
within the authorization of the certification and accreditation administration department of the State Council.

The quality and technology supervision departments of the provinces, autonomous regions, and municipalities directly under the Central
Government, and the institutions of entry-exit inspection and quarantine established by the departments of the State Council for
quality supervision, inspection and quarantine, which are authorized by the certification and accreditation administration department
of the State Council, shall be called by a joint name as the local certification administration departments.

Article 56

Any entity or person is enpost_titled to report an offense on the illicit acts of certification or accreditation of the certification and
accreditation administration department of the State Council and the local certification administration departments, who shall then
make investigations into and handle them in time, and keep confidential for reporter.

Chapter VI Legal Liabilities

Article 57

Any entity or person engaging in the certification activities without approval shall be prohibited and imposed upon a fine ranging
from more than 100 thousand Yuan to less than 500 thousand Yuan, and the illegal gains shall be confiscated if any.

Article 58

Where the foreign certification organizations establish representative offices within the People’s Republic of China without approval,
they shall be prohibited and imposed upon a fine ranging from more than 50 thousand Yuan to less than 200 thousand Yuan, and the
illegal gains shall be confiscated if any.

Where the representative offices of foreign certification organizations established upon approval engage in the certification activities
within the territory of the People’s Republic of China, they shall be ordered to make corrections and be imposed upon a fine ranging
from more than 100 thousand Yuan to less than 500 thousand Yuan, and the illegal gains shall be confiscated if any; where the circumstances
are serious, the documents of approval shall be revoked and publicized.

Article 59

Where the certification bodies accept grants that may influence the impersonality and justice of the certification activities, or
engage in such activities as the development and sales of the products, etc. that may influence the impersonality and justice of
the certification activities, or have interests relations in capitals or management with the certification clients, they shall be
ordered to suspend operation for rectification, where the circumstance is serious, the documents of approval shall be revoked, and
the punishment shall be made public; and the illegal gains shall be confiscated if any; where it constitutes a crime, their criminal
liabilities shall be prosecuted for.

Article 60

Where the certification bodies have any of the following circumstances, they shall be ordered to make corrections, and be imposed
on a fine ranging from more than 50 thousand Yuan to less than 200 thousand Yuan, and the illegal gains shall be confiscated if any;
where the circumstances are serious, they shall be ordered to suspend operation for rectification or even be revoked of the documents
of approval, and the punishment shall be made public:

Carrying out certification activities out of the scope of approval;

Increasing, reducing, or omitting the procedures as prescribed in the basic certification regulations and rules;

Failing to make following-up investigation on their certification products, services and management systems effectively, or failing
to suspend the use of or revoke the certificates and make public the punishment after finding out that their certified products,
services and management systems are unable to meet the requirements of certification; or

Retaining persons who haven’t been registered by the accreditation bodies to undertake the certification activities.

Where the inspection organizations, laboratories in relation to certification increase, decrease or omit the procedures of the basic
certification regulations or rules, they shall be punished pursuant to the preceding paragraph.

Article 61

Where the certification bodies have any of the following circumstances, they shall be ordered to make corrections within a certain
time limit; where they still haven’t made corrections at the expiry of the time limit, they shall be imposed upon a fine ranging
from more than 20 thousand Yuan to less than 100 thousand Yuan:

Refusing to provide the certification services that fall within their business scope for the reason that the clients haven’t taken
part in the certification consultation or certification training, or bringing forward to the clients the requirements or restricted
conditions irrespective to certification activities;

The style, character and name of the self-made certification marks are the same as or similar to the certification marks popularized
by the State, or disturb social administration or impair social m

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE VERIFICATION PROCEDURE OF SELL FOREIGN EXCHANGE FOR PAYMENT UNDER THE ITEM OF ADVANCED PAYMENT

State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Simplifying the Verification Procedure of Sell Foreign Exchange for Payment
Under the Item of Advanced Payment

Hui Fa[2003]No.119

October 9,2003

The branches and offices of the State Administration of Foreign Exchange (hereinafter referred to as SAFE) of all provinces, autonomous
regions and municipalities directly under the State Council and cities with separate plans under the state plan, and Chinese-invested
Foreign exchange designated banks,

The SAFE resolved to simplify the verification procedure of sell foreign exchange for payment under the item of advanced payment in
import business in order to meet the need of the new situation after the access of WTO, to strengthen the international competitiveness
of the domestic enterprises and to promote the trade convenience. Related matters are notified as follows:

The import units are allowed to buy the foreign exchange for payment in the designated banks directly based on the contract, the performance
invoice, the verification form of pay-in-foreign-exchange of import and other related documents in the circumstance that the amount
of payment does not exceed US$200,000 or its equivalent, and is allowed not to offer the advanced payment L/G with test key that
is checked by the banks. The import units must buy the foreign exchange for payment in the designated banks based on the contract,
the performance invoice, the verification form of pay-in-foreign-exchange of import and other related documents in the circumstance
that the amount of payment exceeds US$200,000 or its equivalent, and the advanced payment L/G must be offered at the same time.

Domestic foreign-invested enterprises can buy the foreign exchange for payment directly in the designated banks based on the contract,
the performance invoice, the verification form of pay-in-foreign-exchange of import, Foreign Exchange Register of foreign-invested
enterprises or the testimonial offered by the relative corporations or other documents without offering the advanced payment L/G
to pay in advance to its abroad headquarters or the filiale, share-participating corporations or holding corporations established
by the abroad headquarters in the states or regions outside China(besides Hong Kong, Macao and Taiwan ).

Domestic Chinese enterprises can buy the foreign exchange for payment directly in the designated banks based on the contract, the
performance invoice, JKFHHXD, the admission certificate of oversea-invest obtained from the competent commerce authority or the testimonial
offered by the relative corporations or other documents without offering the advanced payment L/G to pay in advance to the abroad
corporations or its filiale, share- participating corporations or holding corporations in the states or regions outside China( besides
Hong Kong, Macao and Taiwan ).

The import unit can report and be kept on record at the branches or offices of the SAFE by offering the contract, custom handbook,
the bill of entry in the term of material processing with the stamp of verification of the custom, B/L, invoice and guarantee of
going through the verification procedure in time in the circumstance of buy the foreign exchange for payment under the item of import
material processing. It can go through the procedure of the verification and of buying the foreign exchange for payment in the designated
banks based on the Record of Payment in Foreign Exchange of Import that obtained by the local departments of foreign exchange and
the certificate of buying the foreign exchange for payment. The branches and offices shall grant the Record of Payment in Foreign
Exchange of Import of the category of truthfulness verification to the import unit after verify all the documents.

The designated banks shall strictly audit the documents in the course of sell foreign exchange for payment under the item of advanced
payment in the accordance with this circular, and shall strictly audit all the testimonials offered by the relative corporation in
the course of sell the foreign exchange for payment in accordance with Article 2 and Article 3 of this circular. If the payment
can not be justified as the payment between relative corporations, it should be done in accordance with Article 1

This circular shall not be applied to the units out of the list of import units of pay-in-foreign-exchange and the list of units that
pass the truthfulness audit of the SAFE

These Provisions come into effect as of the date of promulgation. If any provisions previously promulgated run counter to these Provisions,
these Provisions shall prevail. The branches and offices shall transmit this circular to the subordinate institutions and designated
banks and all the designated banks to the branches immediately after the receipt of the circular. Any problem raised in the course
of implement shall be reported to the Department of Regular Items of SAFE in time.

State Administration of Foreign Exchange
2003-10-09

REGULATION ON THE URGENT HANDLING OF THE ENTRY-EXIT INSPECTION AND QUARANTINE OF FRONTIER AND PORT PUBLIC HEALTH EMERGENCIES

State General Administration of Quality Supervision, Inspection and Quarantine

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

No. 57

The Regulation on the Urgent Handling of the Entry-Exit Inspection and Quarantine of Frontier and Port Public Health Emergencies was
deliberated and adopted at the executive meeting of the State Administrative of Quality Supervision on September 28th, 2003. It is
hereby promulgated and shall come into force as of the date of promulgation.

State General Administration of Quality Supervision, Inspection and Quarantine

November 7th, 2003

Regulation on the Urgent Handling of the Entry-Exit Inspection and Quarantine of Frontier and Port Public Health Emergencies

Chapter I General Provisions

Article 1

In order to effectively prevent, lessen, control and eliminate the harm of public health emergencies in good time, to safeguard the
physical health of the persons on entry or exit and the general public of the frontiers and ports, and to maintain the normal social
order at the frontiers and ports, the present Regulation is formulated pursuant to the Frontier Health Quarantine Law of the People’s
Republic of China, its implementation rules and the Regulation on the Urgent Handling of Public Health Emergencies.

Article 2

“Public health emergencies” as mentioned in the present Regulation (hereinafter referred to as “emergencies”) refers to the outbreak
of a serious contagious disease, colonial disease of unknown causes, serious food poisoning that has caused or may cause severe effect
on the health of the persons on entry or exit and the general public at the ports and frontiers, and to other incidents that severely
affect the health of the general public, including:

(1)

Rat plague, cholera, yellow fever, inhalational anthrax, severe acute respiratory syndrome;

(2)

The outbreak or prevailing of a contagious disease in Categories B and C in rather large scale, or the situation that several persons
die of such a disease;

(3)

The occurrence of the epidemic situation of a rare disease or a disease that the state has ever declared eliminated;

(4)

Loss of a contagious disease bacteria or virus spawns;

(5)

The occurrence of a colonial disease with similar clinical features of unknown cause which is spreading or may spread;

(6)

10 persons or more are poisoned or die of poison;

(7)

Emergencies taking place at home or abroad that may endanger the frontiers and ports.

Article 3

The present Regulation shall apply to the urgent handling of the emergencies in relation to the frontiers, ports, persons on entry
or exit, means of transport, goods, containers, luggage and post parcels, etc.

Article 4

In the urgent handling of the entry-exit inspection and quarantine of a frontier and port emergency, one shall comply with the policy
of focusing on the prophylaxis and being always on the alert, and carry out the principles of unified leadership, level-to-level
responsibilities, timely responses, definite measures, depending on science and strengthening cooperation.

Article 5

Inspection and quarantine institutions at all levels shall commend and award the persons who make outstanding contributions in the
urgent handling of entry-exit inspection and quarantine of frontier and port emergencies.

Chapter II Organization and Control

Article 6

The State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the SAQSIQ), the entry-exit
inspection and quarantine bureaus of all places directly under it and their branches shall form a command body for urgent handling
of the entry-exit inspection and quarantine of frontier and port emergencies.

Article 7

The SAQSIQ shall coordinate and control the overall command body for urgent handling of the entry-exit inspection and quarantine of
frontier and port emergencies and shall perform the following functions:

(1)

Studying and formulating the plan on the urgent handling of the entry-exit inspection and quarantine of frontier and port emergencies;

(2)

Commanding and coordinating the inspection and quarantine institutions to earnestly perform in the urgent handling of the entry-exit
inspection and quarantine of frontier and port emergencies, as well as organizing and bringing the technical force and relevant resources
into play;

(3)

Checking and guiding the performances of the inspection and quarantine institutions in the urgent handling of the emergencies, and
supervising the implementation of all urgent handling measures;

(4)

Coordinating the relationship between it and the relevant administrative departments of the state, and establishing necessary urgent
coordination and contact mechanism;

(5)

Making collection, arrangement, analysis and reporting to the higher level the relevant information and the variations of the situation,
and offering advice and proposals for the state to make resolutions; transmitting all relevant orders of the organs of higher levels
to the inspection and quarantine institutions of all levels, and making arrangements for the implementation of such orders;

(6)

Encouraging, supporting, and coordinating to carry out international communication and cooperation of relevant technologies concerning
the monitoring, pre-warning, response and handling of entry-exit inspection and quarantine of frontier and port emergencies.

The SAQSIQ shall establish an expert consultation team for the urgent handling of entry-exit inspection and quarantine of frontier
and port emergencies, which shall offer professional consultation services, technical guides on the urgent handling, and offer proposals
and advice for making urgent resolutions.

Article 8

An inspection and quarantine bureau directly under the SAQSIQ shall be liable for the urgent handling of the entry-exit inspection
and quarantine of frontier and port emergencies within its administrative area and shall carry out the following functions:

(1)

Organizing and implementing the emergency plan on the handling of the entry-exit inspection and quarantine of frontier and port emergencies
within its administrative area;

(2)

Mobilizing the force and resources of the inspection and quarantine institutions within its administrative area, and implementing
urgent measures;

(3)

Reporting the urgent handling information to the SAQSIQ in good time and putting forward work proposals;

(4)

Coordinating the relationship with the local people’s government and its administrative department of health, the administrative department
of the port, the customs, the departments of frontier inspection and other relevant departments, etc.

An inspection and quarantine bureau directly under the SAQSIQ shall establish a professional technical institution for the urgent
handling of entry-exit inspection and quarantine of frontier and port emergencies, which shall undertake relevant work.

Article 9

A branch shall perform the following functions:

(1)

Organizing and establishing an on-the-spot command department for the urgent handling of entry-exit inspection and quarantine of emergencies,
and organizing and implementing urgent measures on the spot in good time according to the specific situation;

(2)

Implementing urgent measures on the spot in conjunction with the professional technical institution of the entry-exit inspection and
quarantine of emergencies of the inspection and quarantine bureau directly under the SAQSIQ;

(3)

Strengthening the communication and cooperation between it and the local people’s government and other relevant departments.

Chapter III Preparations for Emergencies

Article 10

The SAQSIQ shall formulate the national plan for the handling of entry-exit inspection and quarantine of frontier and port emergencies
in accordance with the requirements of the Regulation on the Urgent Handling of Public Health Emergencies.

In light of the national plan for the handling of entry-exit inspection and quarantine of frontier and port emergencies, the inspection
and quarantine institutions of all levels shall develop their own plans for the handling of entry-exit inspection and quarantine
of frontier and port emergencies by taking the actual situation of the local ports into consideration, and each shall report to the
institution of the higher level and the local government for archival purposes.

Article 11

The inspection and quarantine institutions of all levels shall implement regular trainings of relevant urgent treatment skills of
entry-exit inspection and quarantine of frontier and port emergencies, and shall organize drills of urgent handling of entry-exit
inspection and quarantine of frontier and port emergencies and popularize advanced technologies.

Article 12

The inspection and quarantine institutions of all levels shall, in accordance with the requirements of the plan on the urgent handling
of entry-exit inspection and quarantine of frontier and port emergencies, guarantee the preparation and reservation of personnel,
facilities, equipment, prophylaxis medicines, appliances and other resources for emergencies, so as to enhance the capacity of handling
emergencies.

Article 13

The inspection and quarantine institutions shall carry out the publicity education of handling emergencies, and shall strengthen the
prophylaxis awareness of emergencies and promote the treatment ability.

Chapter IV Report and Notice

Article 14

The SAQSIQ shall formulate rules on the urgent handling of entry-exit inspection and quarantine of port and frontier emergencies,
shall establish a system for the report of the information in relation to the serious and emergent situation of any contagious disease.

When either circumstance as listed in Article 2 of the present Regulation occurs, the inspection and quarantine bureau directly under
the SAQSIQ shall report to the SAQSIQ within 1 hour after receiving such report, and shall report to the local government simultaneously.

With regard to any emergency that may result in serious social consequences, the SAQSIQ shall report to the State Council in good
time.

Article 15

An inspection and quarantine branch shall, when it learns of the occurrence of either circumstance as listed in Article 2 of the
present Regulation, report to the inspection and quarantine bureau directly under the SAQSIQ and simultaneously report to the local
government.

Article 16

The SAQSIQ and the inspection and quarantine institutions shall designate special persons to take charge of the communication of information
and circulate a notice about the name list of the relevant personnel within their respective administrative area.

Article 17

Any relevant frontier and port entity and individual shall, where it / he finds either circumstance as listed in Article 2 of the
present Regulation, in time and faithfully report to the local port inspection and quarantine institution. No one may conceal or
delay the report or make false reports or hint any other to conceal or delay the report or make false reports.

Article 18

An inspection and quarantine institution that receives a report shall, according to the present Regulation, assign persons to investigate
into, verify and corroborate the reported items, take necessary measures and report relevant information of investigation in time.

Article 19

The SAQSIQ shall inform the relevant departments of the State Council and the inspection and quarantine bureaus directly under the
SAQSIQ of the developing status of an emergency by circulating notices.

After having received a notice, each inspection and quarantine institution directly under the SAQSIQ shall notify the relevant branches
within their respective administrative area.

Article 20

The SAQSIQ shall establish a fast response information network system for the pre-warning of risks of entry-exit inspection and quarantine
of emergencies.

The inspection and quarantine institutions of all levels shall be liable for reporting the emergencies found by them to the higher
levels in good time through the network system, and the SAQSIQ shall in time circulate notices through the network system.

Chapter V Urgent Handling

Article 21

When an emergency occurs, the following on-the-spot urgent control measures shall be taken by the inspection and quarantine institution
of the venue upon approval of the institution of a higher level:

(1)

Conducting temporary control on the spot, and controlling the entry and exit of persons; under the serious epidemic situation suspected
of a human and animal disease, prohibiting patients and suspected patients from contacting the fragile animals;

(2)

Conducting medical observation or temporary isolated check-up on the relevant persons on the spot;

(3)

Taking control measures on the means of transport, cargos, containers, luggage and post parcels on entry or exit, to bar any transference;

(4)

Sealing up and preserving the equipment, materials and articles that may cause an emergency or the spread of an emergency,

(5)

Taking urgent health measures.

Article 22

An inspection and quarantine institutions shall organize experts to make epidemiological investigations into the emergency, conduct
on-the-spot monitoring and examination, determine the seriousness of the harm, make preliminary judgment on the type of the emergency
and put forward proposals on the initiation of the plan on the urgent handling of entry-exit inspection and quarantine of frontier
and port emergencies.

Article 23

The implementation of the plan on the urgent handling of entry-exit inspection and quarantine of frontier and port emergencies of
the SAQSIQ shall be subject to the approval of the State Council. The initiation of the plan on the urgent handling of entry-exit
inspection and quarantine of frontier and port emergencies of any of the inspection and quarantine institutions of any level shall
be subject to the approval of the higher level and be reported to the local government at the same time.

Article 24

The professional technical institution for the urgent handling of entry-exit inspection and quarantine of the frontier and port emergencies
established by an inspection and quarantine bureau directly under the SAQSIQ shall conduct technical investigations into, corroborate,
dispose of, control and appraise the emergencies.

Article 25

According to the need of urgent handing of an emergency, the command body for urgent handling of the entry-exit inspection and quarantine
of frontier and port emergencies shall be empowered to assemble the personnel of entry-exit inspection and quarantine, reserved materials,
means of transport and pertinent facilities and equipment. If it is necessary, the SAQSIQ may, according to Article 6 of the Frontier
Health Quarantine Law of the People’s Republic of China, submit an opinion to the State Council for approval of ordering to close
the pertinent frontiers or to take other urgent measures.

Article 26

The personnel who participate in the urgent handling of the inspection and quarantine of the frontier and port emergencies shall,
according to the requirements in the plan, take health quarantine prophylaxis measures and carry out their work under the guidance
of professionals.

Article 27

In case of finding any patient or suspected patient of a contagious disease on a means of transport, the responsible person shall
report to the local port inspection and quarantine institution as soon as possible. The inspection and quarantine institution shall
organize relevant personnel to take corresponding health quarantine measures as soon as it receives such report.

As for those who have close contacts with the patients of a contagious disease on the means of transport, they shall be subject to
a medical check-up or observation, or against whom control measures shall be taken pursuant to the health quarantine law and the
administrative law and regulation.

Article 28

The inspection and quarantine institution shall conduct necessary examination and check-up on the persons under temporary medical
check-up or isolation and note down in detail pursuant to relevant provisions. As for any patient necessary to be transferred, it
shall in time transfer the patient to the relevant department or institution for treatment.

Article 29

In the case of an emergency, the patients, suspected patients and the persons who have close contacts with the contagious patients
under medical check-up, on-site diagnosis and check-up, isolation treatment or health quarantine observation shall cooperate with
the inspection and quarantine institutions when they take heath quarantine measures.

Chapter VI Legal Liabilities

Article 30

In handling the entry-exit inspection and quarantine of frontier and port emergencies, the relevant port entities or individuals under
any of the following circumstances shall, according to the relevant law and regulation, be given a warning or be imposed on a fine.
If any crime is constituted, the offenders shall be subject to criminal liabilities in accordance with the law.

(1)

Concealing or delaying the report or making false reports of emergencies to the inspection and quarantine institutions;

(2)

Refusing the inspection and quarantine institution to enter into the site of an emergency to take urgent measures;

(3)

Impeding the handling personnel of an inspection and quarantine institution to perform their duties in the form of violence or by
other means.

Article 31

As for any inspection and quarantine institution that fails to exercise its duty of report in accordance with the present Regulation,
or conceals or delays the report or makes false reports of relevant information of an emergency or hints any other person to conceal,
delay or make false reports, the primary responsible persons and other direct responsible persons shall be given an administrative
punishment. If any crime is constituted, the offenders shall be subject to criminal liabilities in accordance with the law.

Article 32

When an emergency occurs, if an inspection and quarantine institution refuses to accept the uniform command of the inspection and
quarantine institutions of higher levels, misses the good time to take urgent measures or in violation of the requirements in the
plan, refuses the command of the inspection and quarantine institutions of higher levels on the uniform assembling of personnel and
materials, the entity shall be criticized by circulating a notice. If any serious consequence is caused, the primary responsible
persons and other direct responsible persons shall be given an administrative punishment. If any crime is constituted, the offenders
shall be subject to criminal liabilities in accordance with the law.

Article 33

When an emergency occurs, if any of the inspection and quarantine institutions fails to cooperate in the investigation by the higher
inspection and quarantine institution or impedes or interferes with the investigation by any other means, it shall be ordered by
the higher inspection and quarantine institution to get right, and the primary responsible persons and other responsible persons
shall be subject to administrative sanctions. If any crime is constituted, the offenders shall be subject to criminal liabilities
in accordance with the law.

Article 34

With regard to the functionaries who abuse their authorities, neglect their duties, or mal-practice for seeking private benefits in
the urgent handling of an emergency, the primary responsible persons and other direct responsible persons shall be given an administrative
punishment; if any crime is constituted, the offenders shall be subject to the criminal responsibilities in accordance with the law.

Chapter VII Supplementary Provisions

Article 35

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

Article 36

The present Regulation shall come into force as of the promulgation.

State General Administration of Quality Supervision, Inspection and Quarantine
2003-11-07

REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CUSTOMS PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

e03194

State Council

Order of the State Council of the People’s Republic of China

No. 395

The Regulation of the People’s Republic of China on the Customs Protection of Intellectual Property Rights, which was adopted at the
30th executive meeting of the State Council on November 26th, 2003, is hereby promulgated, and shall be implemented on March 1st,
2004.

Wen Jiabao,Premier of the State Council

December 2nd, 2003

Regulation of the People’s Republic of China on the Customs Protection of Intellectual Property Rights

Chapter I General Provisions

Article 1

The present Regulation is formulated in accordance with the Customs Law of the People’s Republic of China in order to carry out the
customs protection of intellectual property rights, to promote economic and trade contacts as well as scientific, technological and
cultural contacts with foreign countries, and to maintain public benefits.

Article 2

Customs protection of intellectual property rights mentioned in the present Regulation refers to the protection practiced by the customs
of the rights to exclusive use of trademarks, copyrights and copyright-related rights, patent rights (hereinafter uniformly referred
to as intellectual property rights), which are related to imported and exported goods and protected by the laws and administrative
regulations of the People’s Republic of China.

Article 3

The State prohibits the import and export of goods infringing intellectual property rights.

The customs shall, according to relevant laws and the present Regulation, practice protection of intellectual property rights, and
execute the relevant powers provided for in the Customs Law of the People’s Republic of China.

Article 4

Where an intellectual property rights holder requests the customs to practice protection of his intellectual property rights, he shall
file an application to the customs for taking protective measures.

Article 5

A consignee of imported goods or his agent, or a consigner of exported goods or his agent shall, according to the provisions of the
State, truthfully declare to the customs the status of his intellectual property rights in relation to the imported or exported goods,
and shall submit relevant certification documents.

Article 6

When practicing protection of intellectual property rights, the customs shall keep the commercial secrets of the relevant parties.

Chapter II Archival Filing of Intellectual Property Rights

Article 7

An intellectual property rights holder may, in pursuance of the present Regulation, file an application to the Customs General Administration
for archival filing of his intellectual property rights; when applying for archival filing, he shall submit an application letter,
which shall cover the following contents:

(1)

The intellectual property rights holder’s name, and his place of registration or his nationality, etc.;

(2)

The name and contents of as well as the relevant information on the intellectual property;

(3)

The status of permission to exercise the intellectual property;

(4)

The name and place of origin of the goods for which the intellectual property rights holder lawfully exercises the intellectual property,
the customs of entry or exit, the importer and exporter, the main features and the price, etc. of such goods;

(5)

The manufacturer, importer and exporter of the goods which are known to have infringed the intellectual property, the customs of entry
or exit, the importer and exporter, the main features and the price, etc. of such goods.

The intellectual property rights holder shall attach certification documents, if any, contained in the contents of the application
letter in the preceding paragraph.

Article 8

The Customs General Administration shall, within 30 working days as of day it receives all the application documents, make a decision
on whether or not to permit the archival filing, and notify the applicant in writing; if it does not permit the archival filing,
it shall explain the reason thereof.

In the case of any of the following circumstances, the Customs General Administration shall not permit the archival filing:

(1)

The application documents are incomplete or null and void;

(2)

The applicant is not the intellectual property rights holder;

(3)

The intellectual property is no longer protected by laws or administrative regulations.

Article 9

Where the customs finds that an intellectual property rights holder who applies for archival filing for his intellectual property
rights does not truthfully provide the relevant information or documents, the Customs General Administration may cancel the archival
filing therof.

Article 10

The archival filing of customs protection of an intellectual property right shall become valid as of the day when the Customs General
Administration permits the archival filing, with 10 years of validity period .

Where an intellectual property right is valid, the right holder may, within 6 months prior to the expiry of the validity period for
the archival filing of customs protection of the intellectual property rights, apply to the Customs General Administration for renewal
of the archival filing. The validity period for the renewed archival filing of each time shall be 10 years.

Where an intellectual property right holder does not apply for renewal at the expiry of the validity period for archival filing of
the customs protection of the intellectual property rights, or the intellectual property right is no longer protected by laws or
administrative regulations, the aforesaid archival filing shall be invalidated immediately.

Article 11

Where an archived intellectual property is changed in any way, the intellectual property rights holder shall, within 30 working days
as of such change, modify or nullify the archival filing in the Customs General Administration.

Chapter III Application for and Handling of Detainment of Suspected Infringing Goods

Article 12

Where an intellectual property right holder finds that any suspected infringing goods are about to be imported or exported, he may
submit an application to the customs at place of entry or exit for detainment of such goods.

Article 13

Where an intellectual property right holder requests the customs to detain any suspected infringing goods, he shall submit an application
letter and relevant certification documents, and provide evidence sufficient to prove the obvious existence of the infringement facts
as well.

An application letter shall cover the following main contents:

(1)

The intellectual property rights holder’s name, and his place of registration or his nationality, etc.;

(2)

The intellectual property’s name, contents, and relevant information;

(3)

The names of both the consignee and the consigner of the suspected infringing goods;

(4)

The name and specifications, etc. of the suspected infringing goods; and

(5)

The possible port and time of entry or exit of the suspected infringing goods, and the means of transportation thereof, and so on.

Where the suspected infringing goods are suspected to infringe an archived intellectual property right, the application letter shall
also include the customs archival filing number.

Article 14

Where an intellectual property right holder requests the customs to detain any suspected infringing goods, he shall provide the customs
with a guaranty of no less than the equivalent value of the goods, which shall be used to indemnify the losses caused to the consignee
or consigner because of inappropriate application, and to pay the warehousing, custody and disposal fees, etc. after the goods are
detained by the customs; in case the intellectual property rights holder directly pays warehousing or custody fees to the warehouseman,
such fees shall be deducted from the guaranty. The detailed measures shall be formulated by the Customs General Administration.

Article 15

Where an intellectual property right holder who files an application for detainment of any suspected infringing goods conforms to
Article 13 of the present Regulation, and has provided a guaranty as prescribed in Article 14 of the present Regulation, the customs
shall detain the suspected infringing goods, notify the intellectual property rights holder in writing, and serve the customs detainment
list to the consignee or consigner.

Where an intellectual property right holder who files an application for detainment of any suspected infringing goods does not conform
to Article 13 of the present Regulation, or fails to provide a guaranty as prescribed in Article 14 of the present Regulation,
the customs shall reject the application, and notify the intellectual property rights holder in writing.

Article 16

Where the customs finds that any imported or exported goods are suspected to have infringed an archived intellectual property, it
shall immediately notify the intellectual property rights holder in writing. In case the intellectual property rights holder submits
an application according to Article 13 of the present Regulation and provides a guaranty according to Article 14 of the present
Regulation within 3 working days as of service of the notice, the customs shall detain the suspected infringing goods, notify the
intellectual property rights holder in writing, and serve the customs detainment list to the consignee or consigner. In case the
intellectual property rights holder fails to file the application or provide the guaranty within the time limit, the customs shall
not detain the goods.

Article 17

Upon consent of the customs, an intellectual property right holder and the consignee or consigner may view relevant goods.

Article 18

Where a consignee or consigner considers that his goods do not infringe the intellectual property rights of the right holder, he shall
submit to the customs a written statement attached with relevant evidence.

Article 19

Where a consignee or consigner who is suspected to infringe patented goods regards that his imported or exported goods do not infringe
the patent right, he may, after providing the customs with a guaranty bond of equivalent value to that of the goods, request the
customs to release his goods. If the intellectual property rights holder fails to lodge a lawsuit to the people’s court within a
reasonable time, the customs shall refund the guaranty bond.

Article 20

Where, after the customs has found that any imported or exported goods are suspected to have infringed an archived intellectual property,
and has notified the intellectual property rights holder, while the intellectual property rights holder requests the customs to detain
the suspected infringing goods, the customs shall investigate into and ascertain within 30 working days as of the detainment whether
the detained suspected infringing goods have infringed the intellectual property; if the aforesaid goods are unable to be ascertained,
the customs shall immediately notify the intellectual property rights holder in writing.

Article 21

Where the customs investigates into the detained suspected infringing goods, and requests the competent administration of intellectual
property rights to provide assistance, the relevant competent administration of intellectual property rights shall provide assistance.

Where, when handling an infringement case of imported or exported goods, the competent administration of intellectual property rights
requests the customs to provide assistance, the customs shall provide assistance.

Article 22

When the customs is investigating into the detained suspected infringing goods and other relevant details, the intellectual property
rights holder, and the consignee or consigner shall provide cooperation.

Article 23

An intellectual property right holder may, after submitting an application to the customs for taking protection measures, file an
application according to the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China
or the Patent Law of the People’s Republic of China to the people’s court before lodging a lawsuit for taking the measure of ordering
to stop the infringing acts or taking property preservation with regard to the detained suspected infringing goods.

The customs shall provide assistance if receiving relevant notice of the people’s court on assisting in ordering to stop the infringing
acts or in taking property preservation.

Article 24

In the case of any of the following circumstances, the customs shall release the detained suspected infringing goods:

(1)

The customs detains the suspected infringing goods according to Article 15 of the present Regulation, but does not receive the notice
of the people’s court on assisting execution within 20 working days as of the detainment;

(2)

The customs detains the suspected infringing goods according to Article 16 of the present Regulation, but does not receive the notice
of the people’s court on assisting execution within 50 working days as of the detainment, and the detained suspected infringing goods
cannot be ascertained upon investigation to have infringed any intellectual property rights;

(3)

The consignee or consigner of the goods which are suspected to have infringed a patent right, after providing the customs with a guaranty
bond of equivalent value to that of the goods, requests the customs to release the goods;

(4)

The customs considers that the consignee or consigner has sufficient evidence to prove that the goods have not infringed the intellectual
property rights of the right holder.

Article 25

Where the customs detains any suspected infringing goods according to the present Regulation, the intellectual property rights holder
shall pay relevant warehousing, custody and disposal fees, etc. In case the intellectual property rights holder has not paid the
relevant fees, the customs may deduct them from the guaranty bond provided to customs, or requests the guarantor to perform the relevant
guaranty responsibilities.

Where the suspected infringing goods are regarded to have infringed an intellectual property, the intellectual property rights holder
may calculate the relevant warehousing, custody and disposal fees, etc. that he has paid into the reasonable expenditures for stopping
the infringing acts.

Article 26

Where the customs finds any suspected criminal case when carrying out the protection of intellectual property rights, it shall transfer
the case in accordance with the law to the public security organ for handling.

Chapter IV Legal Liabilities

Article 27

Where any detained suspected infringing goods are ascertained to have infringed an intellectual property rights after the investigation
of the customs, they shall be confiscated by the customs.

The customs shall, after confiscating the goods infringing an intellectual property rights, inform the intellectual property rights
holder in writing of the relevant information on the aforesaid goods.

Where the confiscated goods infringing an intellectual property are used for the commonweal undertaking, the customs shall deliver
them to the relevant commonweal institutions for the purposes of commonweal undertaking; if the intellectual property rights holder
has the intent of purchase, the customs may transfer the goods to the intellectual property rights holder non-gratuitously. In case
the confiscated goods infringing an intellectual property right are unable to be used for the commonweal undertaking and the intellectual
property rights holder has no intent of purchase, the customs may lawfully auction them after the infringement features have been
eliminated; and in case the infringement features are unable to be eliminated, the customs shall destroy such goods.

Article 28

Where an individual brings or mails articles of entry or exit by exceeding the quantity for self-use or the reasonable quantity, and
infringes an intellectual property rights prescribed in Article 2 of the present Regulation, the customs shall confiscate such articles.

Article 29

Where, after accepting an application for archival filing of intellectual property protection or for taking measures of protecting
an intellectual property, the customs fails to find the infringing goods, or fails to in time take protection measures or takes poor
protection measures because of the fact that the intellectual property rights holder fails to provide exact information, the intellectual
property rights holder shall undertake the liabilities by itself.

Where, after the intellectual property rights holder requests the customs to detain the suspected infringing goods, the customs is
unable to ascertain that the detained suspected infringing goods have infringed the intellectual property rights of the right holder,
or the people’s court rules that the said goods have not infringed the intellectual property rights of the right holder, the right
holder shall undertake the indemnity liabilities in accordance with the law.

Article 30

Where, when importing or exporting any goods infringing an intellectual property rights, a crime is constituted, the offenders shall
be subject to criminal liabilities in accordance with the law.

Article 31

Where any customs functionary neglects his duties, abuses his powers or practices frauds for personal gains when carrying out protection
of intellectual property rights, and a crime is constituted, he shall be subject to criminal liabilities in accordance with the law;
if no crime is constituted, he shall be imposed upon administrative sanctions in accordance with the law.

Chapter V Supplementary Provisions

Article 32

Where an intellectual property rights holder has his intellectual property rights archived in the Customs General Administration,
he shall pay the archival filing fee according to the relevant provisions of the State.

Article 33

The present Regulation shall be implemented on March 1st, 2004. The Regulation of the People’s Republic of China on Customs Protection
of Intellectual Property Rights promulgated by the State Council on July 5th, 1995 shall be abolished simultaneously.

State Council
2003-12-02

CIRCULAR OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE MEASURE FOR THE ADMINISTRATION OF PROJECTS (SUB-PROJECTS) WITH THE WORLD BANK’S TECHNICAL ASSISTANCE

Ministry of Finance

Circular of the Ministry of Finance on Printing and Distributing the “Measure for the Administration of Projects (Sub-Projects) with
the World Bank’s Technical Assistance”

Caiji [2003] No. 108

December 25, 2003

The relevant ministries, commissions and institutions directly under the State Council, and the departments (bureaus) in all provinces,
autonomous regions, municipalities directly under the Central Government and cities directly under the State planning:

For further standardizing the administration of the projects with the World Bank’s technical assistance, improving the quality of
managing the projects and the efficiency of using the fund, this Measure for the Administration has been formulated and is hereby
printed and distributed to your organization. Please observe and implement them.

Annex: Measures for the Administration of Projects (Sub-Projects) with the World Bank’s Technical Assistance Annex:Measures for the Administration of Projects (Sub-Projects) with the World Bank’s Technical Assistance

Chapter I General Provisions

Article 1

The present Measures are formulated with a view to further standardizing the administration of projects (sub-projects) with the World
Bank technical assistance, improving the quality of managing the projects and the efficiency of using the fund, and ensuring the
smooth attainment of the projects’ targets.

Article 2

“Projects (sub-projects) with the World Bank’s technical assistance” in this Law refer to projects (sub-projects) that use the World
Bank’s grants or technical cooperation loans.

Chapter II Administration of the World Bank’s Grants

Article 3

Relevant central and local agencies shall, in accordance with the relevant provisions of the Ministry of Finance, apply for the grants.
After verified and approved by the Ministry of Finance, the entity will become the grant project entity and be responsible for the
specifics of implementing the grant projects.

Article 4

The relevant central and local agencies that apply for the grants shall submit their applications to the Ministry of Finance along
with the materials as follow:

(1)

Proposal of the projects (sub-projects);

(2)

Commitment Letter of Grant Use

The above materials shall satisfy the relevant requirements of the Ministry of Finance and the World Bank.

Article 5

Applications of the relevant central agencies may be submit to the International Department of the Ministry of Finance in the name
of the competent authorities (Department level) of the entities; Applications of the relevant local agencies must be submit to the
International Department of the Ministry of Finance through the finance authorities of their provinces.

Article 6

Where the grant project entity is a central agency, with the Ministry of Finance’s approval, the grant may be managed and used by
its own, and the entity shall open and manage a special account for the projects in accordance with relevant provisions. For those
are not qualified for managing fund and finance or be under special circumstance, the grants shall be managed (including account
opening and management) by the International Department of the Ministry of Finance or the entity designated by the International
Department of the Ministry of Finance.

Article 7

Where the grant project entity is a local agency, with the Ministry of Finance’s approval, the grant shall be managed (including account
opening and management) through the finance authority of its province. Where there are special cases as the project involves several
localities and the account can not be divided, the account and the grant shall be managed by the International Department of the
Ministry of Finance or the entity designated by the International Department of the Ministry of Finance.

Article 8

Every grant project (sub-project) entity shall, in accordance with relevant provisions of the Ministry of Finance, pay adequately
and timely the charge for the use of the grant prior to the first withdrawal and account report.

Article 9

Every grant project (sub-project) entity shall implement the grant project in accordance with the Grants Agreement, relevant provisions
of the World Bank and the Ministry of Finance and the commitments in the Commitment Letter of Grant Use, and receive supervision
on procurement and audit from the World Bank, relevant finance authorities and auditing authorities.

Chapter III Administration of the World Bank’s Technical Cooperation Loans

Article 10

Relevant central and local agencies that need the World Bank’s technical cooperation loans shall apply in accordance with the project
management regulations stipulated by the Ministry of Finance for every technical cooperation project. After being verified and approved
by the Ministry of Finance, the entity will become the sub-project entity and be responsible for the specifics of implementing the
sub-projects.

Article 11

The applications submitted by the central and local agencies include the Sub-project Proposal that is required by the Projects Overall
Objective stipulated in the Loan Agreement (Development Credit Agreement). The Sub-project Proposal shall be made in accordance with
the standard format required by the Project Management Regulations.

Article 12

The applications of relevant central agencies that plan to use the central uniformly repay fundshall apply directly to the Ministry
of Finance by it own name. Other relevant central agencies’ applications may be submitted to the International Department of the
Ministry of Finance in the name of the competent authorities (Department level) of their respective agencies. The applications of
the relevant local agencies must be submitted to the International Department of the Ministry of Finance through finance authorities
of their provinces.

Article 13

When it is a central agency and has been approved to use the central uniformly repay fund, the sub-project entity shall directly sign
the Sub-project Agreement with the Ministry of Finance. When it is a central agency but has not been approved to use the central
uniformly repay fund, the sub-project entity shall directly sign the Agreement on Sub-project Loan Transfer with the Ministry of
Finance. When it is a local agency, the sub-project entity shall sign the Agreement on Sub-project Loan Transfer with the Ministry
of Finance through finance authority of its province.

Article 14

The special account of the technical cooperation projects, withdrawals and account reporting to the World Bank shall be uniformly
managed by the International Department of the Ministry of Finance or the entity designated by the International Department of the
Ministry of Finance. The relevant projects entities and finance authorities shall complete the procedure of withdrawals and submitting
expense accounts with the Ministry of Finance.

Article 15

Every sub-project entity shall, in accordance with the relevant provisions of the Ministry of Finance, pay adequately and timely the
charge for loan administration prior to the first withdrawal and account report.

Article 16

Every sub-project entity shall, in accordance with the Loan Agreement, the Project Management Regulations, the Sub-project Implementation
Agreement or the Agreement on Sub-project Loan Transfer and the relevant provisions of the World Bank and the Ministry of Finance,
implement the branch projects and receive supervision on procurement and auditing from the World Bank, relevant finance authorities
and auditing authorities.

Chapter IV Supplementary Provisions

Article 17

Any violation of this Measure will be seriously punished by the Ministry of Finance in accordance with the relevant laws, regulations,
and the relevant rules of the Ministry of Finance as well as the relevant requirements of the World Bank.

Article 18

The Ministry of Finance shall be responsible for the interpretation of this Measure.

Article 19

This Measure shall enter into force as of January 1, 2004.

Ministry of Finance
2003-12-25

DECISION OF THE STATE COUNCIL ON FURTHER STRENGTHENING THE WORK OF INTELLECTUAL PROPERTY PROTECTION

Decision of the State Council of the PRC on Further Strengthening the Work of Intellectual Property Protection

The protection of intellectual property is a component part of the policy of reform and openness of China and an important system
for promoting the prosperity and development of scientific, technological and cultural undertaking and ensuring the normal operation
of the socialist market economy. In order to adapt to the international trend of integration of science, technology and economy and
to the objective requirement for the early restoration of China’s status as contracting State of GATT, China has in recent years
speeded up its intellectual property legislation and successively promulgated such laws as the Trademark Law of the People’s Republic
of China, the Patent Law of the People’s Republic of China, the Law of the People’s Republic of China on Technology Contracts, the
Copyright Law of the People’s Republic of China and the Law of the People’s Republic of China for Countering Unfair Competition,
which have begun to link up with international standards and have played a positive role in promoting reform and openness as well
as the construction of modernization in China. As it is only recently that China has established its intellectual property system,
and the sense of intellectual property of society as a whole is still rather hazy, there is still lacking, in certain regions and
departments, a sufficient understanding of the importance of protecting intellectual property. A number of aggravated acts of infringement
have not only damaged the lawful rights and interests of intellectual property right owners but also the dignity of law. In order
to strengthen conscientiously the work of intellectual property protection and ensure the enforcement of the laws, the following
decision is made.

1. Perfecting the intellectual property system and strengthening conscientiously the work of intellectual property protection, are
currently important contents of deepening the complementary reforms in the scientific, technological and economic fields and expanding
the scope of opening to the outside world, and also the basic requirements in our efforts to speed up the establishment of a system
of socialist market economy and realize the link-up with the world economy. The People’s Governments at the various levels have to
understand fully the importance of the intellectual property system in giving impetus to scientific and technical progress and economic
development, to handle correctly the relationship between local interests and overall interests, between immediate interests and
long-term interests, place the strengthening of intellectual property protection on the agenda of scientific, technical, economic
and cultural work as an important matter, utilize comprehensively legal, economic and administrative means to induce enterprises,
scientific research institutes and institutions of higher learning (referred to below as enterprises and institutions) to adopt effective
measures to protect their intellectual property while fully respect the intellectual property of others, urge society as a whole
to foster the good habit of respecting and protecting intellectual property so as to create a favourable environment and conditions
for the producing, by citizens, enterprises and institutions, of inventions, creations, and literary/artistic works as well as for
the scientific, technical, economic and cultural cooperation and exchange with foreign countries.

2. The protection of intellectual property is a comprehensive task involving many aspects such as legislation, judicature, law enforcement,
and administration, and the various relevant departments should support each other and cooperate closely so as to form a unified
and harmonious system of intellectual property protection.

Recently, the Standing Committee of the National People’s Congress has examined and approved the decision on punishing crimes of infringing
on copyright, so as to increase the force of the law for stopping and punishing acts of intellectual property infringement.

The State Council will pay close attention to the study and formulation of administrative regulations for carrying out border measures
in respect of intellectual property protection.

The administrative authorities and enforcing agencies for intellectual property at the various levels shall strengthen their functions,
maintain their staff at full strength and increase efficiency. At present, it is necessary to focus on reinforcing the staff of copyright
administrative and enforcing agencies at various levels to ensure the effective implementation of the Copyright Law of the People’s
Republic of China. In the process of performing their duties, the intellectual property administrative and enforcing agencies will
need the cooperation of other enforcement agencies and administrative departments, and the relevant agencies and departments should
lend their support unstintingly. In respect of major cases producing a great impact, the administrative authorities and enforcement
agencies for intellectual property affairs may investigate and deal with them jointly with the departments in charge of scientific,
technological, economic, cultural, press, publishing, broadcasting, cinematic, television and public security affairs.

Support should be given to the hearing of intellectual property cases by the People’s Courts according to law and to the setting up
of intellectual property adjudication divisions by the relevant People’s Courts where they are needed. The ranks of judges should
be expanded in earnest so as to ensure that various categories of intellectual property cases will be dealt with justly and promptly.

In judicial and administrative enforcement, the barriers of local protectionism and of departmentalism should be broken down and various
acts of intellectual property infringement should be investigated and punished by following the principles of “There should be laws
to abide by. Where there are laws, they must be abided by. Where laws are enforced, they must be enforced strictly. Where laws are
broken, the law-breakers must be investigated and dealt with.” and by the strict enforcement of laws and regulations. Where the circumstances
of the infringing acts are so serious as to constitute crimes, the relevant persons should be prosecuted for their criminal liability
according to law so as to safeguard conscientiously the lawful rights and interests of owners of intellectual property rights as
well as the unity and dignity of the socialist legal system.

In order to further amplify and perfect the intellectual property administration system of the country and strengthen the macro-management
and coordination of intellectual property, the State Council has decided to institute the system of holding regular meetings at the
State Council to deal with intellectual property matters. The various departments concerned should strengthen their administration
organizations for intellectual property affairs in the organizational reform and sort out interdepartmental relations, build up in
China a framework in which the system of executive administration and the system of judicial protection operate in parallel so as
to increase the force of intellectual property protection.

3. It is necessary to strengthen energetically the supervision and inspection of the implementation of intellectual property laws
and develop a mechanism combining routine supervision with inspection of key sectors. The State Council will nonperiodically organize
the various administrative authorities and enforcement agencies for intellectual property affairs, together with the departments
concerned with scientific, technological, economic, cultural, press, publishing, broadcasting, cinematic, television and public security
matters, to carry out joint inspections of the situation in various regions and departments regarding the implementation of intellectual
property laws, with the stress on investigating and dealing with a number of major cases of intellectual property infringement which
are significant and make a great impact, and to supervise local authorities in combating such phenomena as laxity in law enforcement
and leniency in punishing infringing acts. This is to be shaped gradually into a system to ensure the effective implementation of
the intellectual property laws.

At present, the focal point of supervision and inspection is to put the audio-visual product and computer software market in order.
The administrative authorities for copyright and for industry and commerce at various levels should cooperate closely, intensify
their inspections and deal seriously with piratical acts of illegally copying audio-visual products and computer soft-ware.

4. In order to carry out the relevant provisions in the Paris Convention for the Protection of Industrial Property and the Berne Convention
for the Protection of Literary and Artistic Works, acceded to by China, and to strengthen intellectual property protection in foreign
economic relations and trade, it is necessary to enhance the functions of the customs authorities in protecting intellectual property
and stopping the import and export of infringing products, and to adopt necessary border measures to stop the import and export of
infringing products effectively. The customs authorities should strengthen the liaison and cooperation with the relevant departments
and strictly carry out the border measures concerning intellectual property according to law.

5. It is necessary to strengthen the work of protecting intellectual property in the import and export of new technologies and new
products. Where an item of technology or a product is imported from abroad, a comprehensive investigation should be carried out of
the status of the relevant technology or product in respect of intellectual property in order to avoid infringement disputes or other
losses. Where an item of new technology or a new product is exported, proper inquiries should also be made with respect to intellectual
property so that after the technology or product is exported it may not be copied by others or infringe the intellectual property
of others.

It is necessary to strengthen the examination, approval and administration of the processing of brand-name audio-visual product using
materials which are supplied by clients or are imported and the manufacturing and distributing of such products in the form of joint
ventures. Where an enterprise is entrusted by a foreign firm with such activities, it should find out through the relevant intellectual
property administrative authority or service agency whether the foreign firm is the lawful proprietor of the particular item of intellectual
property and has the right to its use, and it should be stipulated in the contract the liability for making defence where the enterprise
is accused by a third party of infringement for carrying out the activities of processing name-brand audio-visual products or manufacturing
and distributing such products while performing the contract, and the liability for making compensation where the accusation is found
tenable.

6. The various trades and professions should each take the strengthening of intellectual property work as an important measure for
promoting the scientific-technological progress and economic development within the trade. Each should, according to the actual state
of scientific, technological and economic development in the trade, actively carry out studies on its own intellectual property strategy
and management in order to lend guidance to the adjustment of the product mix, scientific research and production throughout the
trade. In respect of those trades with little capability of autonomous research and development, such as the pharmaceutical, chemical
and computer software trades, a preferential policy should be adopted to increase the input of funds for research and development
and raise the capability and level of autonomous research and development.

7. The departments responsible for various plans of scientific- technological development should take intellectual property work as
an important link in the management of their plans and formulate a unified intellectual property strategy in the light of the execution
and development of the plans, and should in particular strengthen the investigation and analysis of intellectual property in the
fields related to the plans and the corresponding study of countermeasures, so that the intellectual property work will run through
the entire process of putting the projects in the plans on record, the legal protection of the results and their commercialization,
industrialization and internationalization.

8. Enterprises and institutions should take the protection of intellectual property as an important content of establishing a modern
system of enterprises and a modern system of scientific research institutes, heighten their consciousness of intellectual property,
abide by the intellectual property laws and regulations, channel the strengthening of intellectual property protection into line
with their own work in research, development, production, operation and internal management, and shaping these into corresponding
systems.

The research and development of new techniques, new technology, and new products as well as the technical transformation of enterprises
and institutions should be closely combined with intellectual property work. They should make use of information on intellectual
property to formulate correct strategies of research, development, production and operation and decide on an appropriate direction
of research and technical line, raise the starting point, level and efficiency of research and development and avoid the emergence
of unnecessary repetitive developments or the arising of infringement disputes in scientific research and in production.

9. The various categories of trade associations in the scientific, technical, economic and cultural fields, together with specialized
public organizations concerning intellectual property and socialized service organizations, are an important force in promoting the
implementation of intellectual property laws and strengthening the work in intellectual property protection. It is necessary to encourage
and support the development of these organization, steer them towards utilizing their flexible mechanisms and, geared to the needs
of society, provide all manners of intellectual property law consulting and other services. A number of legal service organizations
concerning intellectual property should be set up to assist interested parties in the investigation of infringing acts and the gathering
of evidence so that the relevant disputes may be resolved through legal channels. The departments concerned of the government should
fully bring into play the initiative of these organizations so that they may become capable assistants of the administrative authorities
in protecting intellectual property.

10. At present, it is necessary to vigorously strengthen the training of specialists in the field of intellectual property and the
work of popularizing knowledge on intellectual property protection among the vast numbers of leading cadres and the masses. The administrative
authorities for intellectual property and departments in charge of scientific, technological, economic and cultural affairs should
carry out in-depth propaganda about intellectual property in combination with the Second Five Year Plan for the Popularization of
Legal Knowledge and strengthen education in respect of the legal system concerning intellectual property. The media should intensify
the reporting on intellectual protection and fulfil satisfactorily the tasks of propagation, education, and supervision through public
opinion. Enterprise and institutions should bring intellectual property law into line with their educational plans for popularization
of legal knowledge. It is necessary to gradually heighten the consciousness of intellectual property protection and the related sense
of legality in society as a whole through in-depth, sustained propaganda and education, so as to create a salutary social environment
favourable to the protection of intellectual property.

11. The departments concerned of the State Council may formulate, on the basis of this Decision, specific procedures for strengthening
the intellectual property work in enterprises and institutions.

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

Regulations of the PRC on Management of International Freight Forwarders

CHAPTER I GENERAL PROVISIONS CHAPTER II CONDITIONS FOR THE ESTABLISHMENT CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL CHAPTER
IV BUSINESS SCOPE CHAPTER V PENALTIES CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 1 These regulations are formulated to govern behaviors of international freight forwarders to safeguard the lawful rights and benefits
of consignors and consignees of exports and imports, and international freight forwarders and to promote the development of foreign
trade.

Article 2 The international freight forwarders referred to in the regulations mean those trades entrusted by consignors and consignees of exports
and imports conduct international freight forward and related businesses for their clients and collect enumerations for their services
in their own names or in the name of their consignors.

Article 3 International freight forwarders must obtain the status of a legal body as an enterprise of the People’s Republic of China according
to law.

Article 4 The Competent Departments of foreign trade and economic cooperation under the State Council are responsible for supervision and management
of international freight forwarders throughout the country.

The competent departments of trade and economic relations with other countries of people’s governments of various provinces, autonomous
regions and municipalities as well as special economic zones (shortened below as local competent departments of trade and economic
relations with other countries) are responsible for supervision and management of international freight forwarders in their administrative
areas in accordance with the regulations and with in the scope of power authorized by the competent departments of foreign trade
and economic cooperation under the State Council.

Article 5 The supervision and management of international freight forwarders should abide by the following principles:

1. To meet the demands of development of foreign trade and promote the rational distribution of international freight forwarding agencies.

2. To protect fair competition and promote the improvement of services of international freight forwarders.

Article 6 Enterprises engaged in international freight forwarding should observe the laws and administrative rules and regulations of the People’s
Republic of China and be subject to the supervision and management carried out by related competent institutions of their trade in
keeping with relevant laws and administrative rules and regulations.

CHAPTER II CONDITIONS FOR THE ESTABLISHMENT

Article 7 According to the characteristics of the trade the establishment of an international freight forwarder must acquire the following
conditions:

1. It has competent professional to engage in international freight forwarding.

2. It has a fixed site for business and necessary facilities.

3. It has stable sources of and markets for exports and imports.

Article 8 The minimum amount of registered capital of an international freight forwarder must meet the following demands:

1. The minimum amount of registered capital of an international freight forwarder by sea should be 5 million yuan.

2. The minimum amount of registered capital of an international freight forwarder by air should 3 million yuan.

3. The minimum amount of registered capital of an international freight forwarder by land or and international express deliverer should
be 2 million yuan.

For an enterprise engaged in two or more than two items of businesses mentioned above its minimum amount of registered capital should
be that of the item with the highest amount of registered capital.

In sitting up a branch an international freight forwarder should add a registered capital of 500,000 yuan.

CHAPTER III PROCEDURES OF EXAMINATION AND APPROVAL

Article 9 To apply for the establishment of an international freight forwarding agency the applicant should submit an application to the competent
department of trade and economic relations with other countries of the locality when the agency is to be set up and, with opinions
put forward by the department, should forward the applications to the competent department of foreign trade and economic cooperation
under the State Council for approval and ratification.

Article 10 To apply for the establishment of an international freight forwarding agency. The following documents should be submitted.

1. Application.

2. Draft Constitution of the enterprise.

3. The names, posts and identification paper of leading members and chief staff members.

4. Certificates of credit standing and conditions of operational facilities.

5. Other documents as stipulated by the competent departments of foreign trade and economic s/cooperation under the State Council.

Article 11 The local competent department of trade and economic relations with other countries should put forward its opinions within 45 days
farm the day it receives the application and other documents and then forwards them to the competent department of foreign trade
and economic cooperation under the State Council.

The competent department of foreign trade and economic cooperation under the State Council should decide on approval or disapproval
within 45 days from the day it receives the application for the establishment of an international freight forwarding agency and other
documents, and should issue a certificate of ratification to the approved international freight forwarding agency.

Article 12 With the certificate of ratification issued by the competent department of trade and economic corporation with other countries the
he international freight forwarding agency should go through the procedures of enterprise and taxation registration according to
relevant stipulations of laws, administrative rules and regulations.

Article 13 The competent department of trade and economic cooperation under the State Council should cancel the certificate of ratification
if the applicant does not open business without proper reasons within 180 days from the day it receives the certificate of ratification.

Article 14 The certificate of ratification is valid for 3 years.

When the certificate of ratification expires and the agency wants to continue its business the international freight forwarding agency
should apply to the competent department of foreign trade and economic cooperation under the State Council for another certificate
of ratification 30 days before the expire.

If the international freight forwarding agency does not apply for another certificate of ratification according to stipulations in
the previous clause, it will automatically lose its qualification to engage in international freight forwarder.

Article 15 When the international freight forwarding agency terminates its business it should report to the local competent department of trade
and economic relations with other countries or to the competent department of foreign trade and economic cooperation under the State
Council according to the procedures of application for its establishment as stipulated in Article 9 and hand in its ratification
certificate for cancellation.

Article 16 To apply for setting up a branch the international freight forwarding agency should go through the necessary procedures stipulated
in the regulations.

Article 17 An international freight forwarding agency may accept a commission to operate part or all of the following business:

1. To book ship’s holds and warehouses.

2. Supervision of freight loading and unloading and assembling and dismantling of containers.

3. Multi-forms of international through transportation.

4. International express delivery excluding private letters.

5. To make customs declaration, undergo customs quarantine and inspection and to insure,

6. To prepare related bills and certificates, pay transport charges, settle accounts and pay miscellaneous fees.

7. Other businesses of international forwarder.

An international freight forwarding agency should conduct its business within the ratified scope. To engage in above-mentioned businesses
an international freight forwarding agency should register with relevant competent departments as required by related laws and administrative
rules and regulations.

International freight forwarding agencies can be mutually entrusted to conduct business stipulated in this articles.

Article 18 International freight forwarding agencies should pursue and operational policy of safety, high speed, accuracy, economy and convenience
in serving consignors and consignees of exports and imports.

Article 19 An international freight forwarding agency must set the standards of charges to be collected according to relevant state stipulations
and publicize them at the business site.

Article 20 An international freight forwarding agency must use invoices checked and approved by taxation departments in its business,

Article 21 An international freight forwarding agency should hand in a report on its business performance of the previous year to the competent
department of trade and economic relations with other countries of its locality before the end of March every year.

Article 22 An international freight forwarding agency is not allowed to do the following things:

1.To conduct its business through using unfair competition method.

2. To lend, lease or transfer to others its certificate of ratification and other papers concerning international freight forwarder.

Article 23 When and international freight forwarding agency violates the stipulations of Articles 19 and 21 of the regulations, the competent
department of foreign trade and economic operation under the State Council should serve if a warning and order it to amend with a
time limit. If not, the department should cancel its certificate of ratification.

Article 24 When an international freight forwarding agency violates the 2nd stipulation of Article 17 and stipulations of Articles 20 and 22,
the competent department of foreign trade and economic cooperation under the State Council should serve it a warning and order it
to suspend business for rectification up to canceling its certificate of ratification. Related competent departments of industrial
and commercial administration, customs and taxation should give punishments according to relevant laws and administrative rules and
regulations.

Article 25 To engage in international freight forwarder as prescribed in Article 17 without authorization in violation of the stipulations of
the regulations the competent departments of foreign trade and economic cooperation under the State Council should be these illegal
business activities and the administration institutions of industry and commerce should give punishments according to laws, and administrative
rules and regulations.

Article 26 If violations of the regulations constitute a crime the violator should be given criminal sanctions according to law.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 27 International freight forwarders may set up an association of international freight forwarders which can give guidance and provide
services to its members according to its charter.

PROVISIONS CONCERNING THE ADMINISTRATION OF FOREIGN-FUNDED BUSINESS-STARTING INVESTMENT ENTERPRISES

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology, the State Administration for Industry
and Commerce, the State Administration of Taxation, the State Administration of Foreign Exchange

Decree of the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology, the State Administration
for Industry and Commerce, the State Administration of Taxation and the State Administration of Foreign Exchange

No.2

The Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises were adopted at the 11th ministerial
meeting of the Ministry of Foreign Trade and Economic Cooperation. It is hereby promulgated and shall be implemented as of March
1, 2003.

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

Minister of the Ministry of Science and Technology Xu Guanhua

Director general of the State Administration for Industry and Commerce Wang Zongfu

Director general of the State Administration of Taxation Jin Renqing

Director general of the State Administration of Foreign Exchange Guo Shuqing

January 30, 2003

Provisions Concerning the Administration of Foreign-funded Business-starting Investment Enterprises

Chapter I General Provisions

Article 1

The present Provisions are formulated to encourage foreign-funded companies, enterprises and other economic organizations or individuals
(hereinafter referred to as foreign investors) to come to China to engage in business-starting investments, and to establish and
perfect the mechanism of business-starting investments in China in accordance with the Law of the People’s Republic of China on Chinese-foreign
Contractual Joint Ventures, the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, the Law of the People’s
Republic of China on Foreign-capital Enterprises, the Company Law of the People’s Republic of China and other related laws and regulations.

Article 2

The term “foreign-funded business-starting investment enterprise ” (hereinafter referred to as FBIE” refers to the foreign-funded
investment enterprises established by foreign investors or by foreign investors jointly with companies, enterprises or other economic
organizations established and registered in China in accordance with the Chinese law (hereinafter referred to as Chinese investors).
To establish an FBIE shall be in conformity with the present Provisions. It shall mainly engage in business-starting investments.

Article 3

The term “business-starting investment” means making principal equity investments to high and new tech enterprises that haven’t been
listed in the stock market (hereinafter referred to as invested enterprises), and providing management services to them for the prospective
capital gains.

Article 4

An FBIE is allowed to take the form of the non-legal-person organization or the corporate organization.

As to a non-legal-person organization, the investors shall bear joint liabilities for its debts. The investors may also specify in
the contract of the FBIE that: When the assets of an FBIE are not enough to clear the debts of this enterprise, the indispensable
investors as stated in Article 7 shall bear joint liabilities and the other investors shall bear the liabilities to the company
within the limit of contributions made by each of them.

For a corporate-form FBIE, the investors shall bear the liabilities to the company within the limit of the amount of investment made
by each of them.

Article 5

The FBIEs shall abide by relevant laws and regulations of China, shall be in conformity with the policies of foreign investment industries
and shall not damage the public interests of China. The legitimate businesses and lawful rights and interests of the FBIE within
the borders of China shall be subject to the protection of Chinese law.

Chapter II Establishment and Registration

Article 6

To establish an FBIE, the following requirements shall be met:

(1)

There are more than 2 but less than 50 investors, and at least one shall be an indispensable investor as stated in Article 7 ;

(2)

The investors of a non-legal-person organization shall subscribe to a minimum total contribution in the sum of 10, 000, 000 U.S. $.
The investors of an incorporated FBIE shall subscribe to a minimum total capital in the sum of 5, 000, 000 U.S. $. Except for the
indispensable investors as provided in Article 7 , each of the other investors shall subscribe to a minimum capital contribution
no less than 1, 000, 000 yuan. Foreign investors may contribute their investments in convertible currencies and Chinese investors
may contribute their investments in Renminbi.

(3)

It shall have definite organization form;

(4)

It shall have a definite and legitimate investment direction;

(5)

Except that the operations of such an enterprise are subject to the management of a business-starting investment management company
under authorization, an FBIE shall have at least 3 professional managerial persons who have practical experience in business-starting
investment;

(6)

It shall meet the other requirements as provided in laws and administrative regulations.

Article 7

An indispensable investor shall meet the following requirements:

(1)

Business-starting investment is its main business;

(2)

The accumulative total capital managed by it in the three years before the application is not less than 100, 000, 000 U.S. dollars,
and of which no less than 50, 000, 000 U.S. dollars have been used in business-starting investment If the indispensable investor
is a Chinese investor, the accumulative total capital managed thereby in the three years before the application is submitted is not
less than 100, 000, 000 Yuan, and of which no less than 50, 000, 000 yuan have been used in business-starting investment;

(3)

It shall have at least 3 professional managerial persons who have practical experience in business-starting investment;

(4)

If the affiliated entity of an investor meets the above-mentioned requirements, the investor may apply for the status of an indispensable
investor. The term “affiliated entity” in this paragraph refers to an entity controlled by the investor, or an entity that controls
the investor, or another entity that subject to the control of the same entity that controls the investor. The term “control” in
this paragraph means that the controlling party has a voting power of more than 50 % over the controlled party.

(5)

Neither the above-mentioned indispensable investor nor its affiliated entity shall have any record of being prohibited from engaging
in business-starting investment or business of investment consultancy, or being punished for the reason of cheat, by the judicial
departments and other relevant agencies of the country where it is located;

(6)

An indispensable investor of a non-legal-person enterprise shall subscribe to and actually pay not less than 1 % of the subscribed
contributions and the actual total contributions respectively, and it shall bear joint liabilities for the debts of this enterprise.
An indispensable investor of an incorporated FBIE shall subscribe to and actually pay not less than 30% of the subscribed contributions
and the actual total contributions respectively.

Article 8

The following procedures shall be observed in the establishment of an FBIE:

(1)

The investors shall submit the establishment application and relevant documents to the administrative departments in charge of foreign
trade and economic cooperation at the provincial level of the place where the FBIE is to be established.

(2)

The administrative departments in charge of foreign trade and economic cooperation at the provincial level shall complete the original
examination and report to the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as the MOFTEC) within 15
days as of the acceptance of the above-mentioned materials.

(3)

The MOFTEC shall, with the consent of the Ministry of Science & Technologymake a written decision on approval or disapproval within
45 days as of the acceptance of all the above-mentioned materials. And it shall issue a Certificate of Approval for Foreign-invested
Enterprises to the approved enterprises.

(4)

With the approved of establishing an FBIE, the applicant shall file an application for registration at the State Administration of
Industry and Commerce or at local bureaus with its authorization by presenting the Certificate of Approval for Foreign-invested Enterprise
within one month as of the acceptance of the Certificate of Approval for Foreign-invested Enterprise.

Article 9

The following documents shall be submitted to the MOFTEC when applying for the establishment of an FBIE:

(1)

an establishment application signed by the indispensable investors;

(2)

contracts and articles of association of the FBIE signed by all the investors;

(3)

a written declaration made by the indispensable investors (covering: a. the investors meet the requirements as provided in Article
7 ; b. all the materials submitted are genuine; and c. the investors will strictly abide by the present provisions and other relevant
Chinese laws and regulations);

(4)

a letter of legal advice issued by a law firm affirms that the legal indispensable investors exist and the above-mentioned declaration
has got valid authorization and has been signed;

(5)

explanations of the business-starting operations of the foreign investors, explanations of the capital managed by them of the three
years before the application is submitted, explanations of the investment made among the capital managed by them of the three years
before the application is submitted, resumes of its professional managerial persons of business-starting investment;

(6)

the registration certificate of the investors (photocopy) and the certificate of the legal representative (photocopy);

(7)

the notice of pre-approval of the name of the FBIE issued by the name registration organ;

(8)

If the qualifications of the indispensable investors are based on the requirements as provided in paragraph (4) of Article 7 , they
shall submit relevant materials of the affiliated entity that meets the requirements;

(9)

other documents related to the establishment application as required by the examination and approval authority.

Article 10

The FBIEs shall give a clear indication of “Business-starting Investment” in its name. Except for business-starting investment enterprises,
none of the other foreign investment enterprises may use the aforesaid words in their name.

Article 11

In applying for establishing an FBIE, the following documents shall be submitted to the registration organ and shall be responsible
for their authenticity and effectiveness:

(1)

registration application signed by the chairman of the board of directors or by the person-in-charge of the joint management committee;

(2)

contracts, articles of association, the documents and certificate of approval issued by the approving authorities;

(3)

legal license to do business or the certification of the ID of the investor;

(4)

credit certification of the investor;

(5)

appointment documents and the certification of the ID of the legal representative and archival documents of the directors and managers
of this enterprise;

(6)

notice of pre-approval of its name;

(7)

the certification of the address of the enterprise and the certification of its business offices.

In the case of applying for establishing a non-legal-person organization, the applicant shall submit the articles or agreement of
overseas indispensable investors besides the aforesaid materials. Where an enterprise includes investors as provided in Article 7
(4) of the present Provisions, the applicant shall submit the letter of undertaking issued by its affiliated entity, which is to
bear the joint liabilities of investments. All of the aforesaid documents should be written in Chinese. Those written in foreign
languages other than Chinese shall be accompanied by good Chinese translations.

An FBIE should apply to the original registration organ for the modification registration of its modified registration matters.

Article 12

Upon the approval of the registration organ, the incorporated FBIEs shall be issued the business license of legal entity, and the
non-legal-person FBIEs shall be issued a business license.

A business license shall clearly states the total registered capital of the investors and the names of the dispensable investors.

Chapter III Capital Contributions and Relevant Modifications

Article 13

The capital contributions made by the investors of a business-starting enterprise without qualifications of legal entity and the relevant
modifications shall be in conformity with the following:

(1)

The investors may pay the their subscribed capital by installments according to the proceedings of the business-starting investment,
but the longest term shall be no more than 5 years. The amount of capital to be invested at each stage shall be decided by the FBIE
itself according to the contract of the enterprise and the agreement concluded by it and its invested enterprise. In the contract,
the investors shall stipulate liabilities of the investors who do not pay the subscribed capital contributions and relevant measures.

(2)

During the period of the continuous existence of the FBIE, the investors generally shall not reduce their subscribed amount of capital.
Upon approval of the examination and approval organ, an investor may reduce its subscribed amount of capital if the said amount exceeds
50 % of the total provided that it has obtained the consent of the indispensable investors and the business-starting FBIE isn’t in
violation of the requirement of minimum registered capital of 1, 000, 000 U.S. $ (The present provision shall not be applicable to
a case where an investor reduces its invested amount of capital in accordance with item (5) of this Article or the FBIE reduces the
untapped capital when its term of investment expires). In this case, the investors shall stipulate the conditions, procedure and
methods for reducing the subscribed amount of capital in the contract of the FBIE;

(3)

Indispensable investors shall not withdraw from the FBIE during the period of its continuous existence. A necessary withdrawal under
a special circumstance shall be upon the consent of the investor whose investment amount exceeds 50% of the total amount, and the
relevant rights and interests shall be assigned to the new investor who satisfies the conditions as provided in Article 7 . The contract
and the articles of association of this enterprise shall be modified and shall be reported to the check and approving authority for
approval.

The transference of the other investors’ subscribed amount of capital or invested amount of capital shall be done in compliance with
the contract of the FBIE and the assignee shall meet the requirements as provided in Article 6 . All investors shall make relevant
modifications in the contract and the articles of association of the FBIE and report to the examination and approval organ for archival
purposes.

(4)

After an FBIE has been established, the investment application of new investors shall be in conformity with the present Provisions
and the stipulations in the contract, and shall be consented by the indispensable investors. Relevant modifications shall be made
in the contract and the articles of association of the FBIE and shall be reported to the examination and approval organ for archival
purposes.

(5)

Among the incomes of an FBIE arising from selling or disposing of the interests of its invested enterprise by other means, the part
equivalent to its original amount of investment may be directly allocated to all the investors. Such allocation constitutes a reduction
of the invested amount of the investors. An FBIE shall stipulate concrete methods of allocation in its contract, and at least 30
days before it makes such allocation, it shall submit an archival statement on the request of reducing the relevant invested amount
of the investors. In the said statement, it shall prove that the amount of the investments to be made by the investors and the other
capital it has at that time is at least in conformity with the investment obligations that the FBIE shall undertake at that time.
However, such allocation shall not be a plea to the litigation resulted from its violation of any of the investment obligations.

Article 14

When a non-legal-person organization files an application to the registration authority for modifying its registration, the archival
evidential documents issued by the above-mentioned examination and approval organ may replace relevant documents for examination
and approval.

Article 15

Having made investments according to the proceedings of business-starting investments and upon relevant capital verification report,
the investors of the FBIE shall file an application to the original registration organ for handling the archival procedures for their
investments. The registration organ shall fill up the number of its actual amount of capital behind the item of “Capital Amount”
on its Business License.

Where an FBIE makes no investment or fails to make the total investment, it shall be subject to penalties imposed by the registration
organ in accordance with the existing regulations.

Article 16

The investors of an FBIE shall make investments and relevant modifications in accordance with the existing regulations.

Chapter IV Institutional Structure

Article 17

An FBIE in the form of non-legal-person organization shall establish a joint management committee. An FBIE in the form of company
shall establish a board of directors. The investors shall stipulate on how to organize the joint management committee or the board
of directors in the contract and in the articles of association of the FBIE. The joint management committee and the board of directors
shall manage the enterprise on behalf of its investors.

Article 18

The subordinate administrative departments of the joint management committee and the board of directors shall, in accordance with
the power as specified in the contract and the articles of association of the FBIE, take charge of the routine managerial work and
execute the investment decisions made by the joint management committee and the board of directors.

Article 19

The person-in-charge of an administrative department shall satisfy the following conditions:

(1)

shall have full capacity for civil conduct;

(2)

shall have no record of criminal offence;

(3)

shall have no record of bad operations;

(4)

shall be experienced in business-starting investments and have no record of illegal practices.

(5)

shall meet the other requirements of the examination and approval organ.

Article 20

The administrative departments shall regularly report the following to the joint management committee and the board of directors:

(1)

significant investments under authorization;

(2)

metaphase & annual performance reports and financial statements;

(3)

other matters as provided in laws and regulations;

(4)

relevant matters as stipulated in the contract and in the articles of association of the FBIE.

Article 21

The joint management committee and the board of directors may grant the power of routine administration to a business-investment management
enterprise or another FBIE rather than establish administrative departments. The business-investment management enterprise may be
a domestically-funded business-starting investment enterprise or a foreign-funded one or an overseas enterprise. In this case, the
business-starting investment enterprise and the business-starting investment management enterprise shall conclude a managerial contract,
stipulating respective rights and interests. Such a contract shall not come into effect until it has been agreed by all the investors
and has been approved by the examination and approval organ.

Article 22

The investors of an FBIE may, by reference to the international practices, stipulate interior system for income allocations and incentive
mechanism in the business-starting investment contract.

Chapter V Business-Starting Investment Management Enterprise

Article 23

An entrusted business-starting investment management enterprise shall meet the following conditions:

(1)

To accept the entrustment of the FBIEs and to manage the investments made by them shall be its main business;

(2)

It shall have at least 3 professional managerial persons who have at least three years of practical experience in business-starting
investment;

(3)

Its registered capital or its total investments shall not be less than 1, 000, 000 yuan or equivalent foreign exchange;

(4)

It shall have a perfect interior control system.

Article 24

A business-starting investment management enterprise is allowed to take the form of the corporate organization or the partnership
organization.

Article 25

A business-starting investment management enterprise may be entrusted to manage different FBIEs.

Article 26

A business-starting investment management enterprise shall report the matters as listed in Article 20 to the joint management committee
and the board of directors of the entrusting party.

Article 27

The establishment of a foreign-funded business-starting investment management enterprise shall be in conformity with the conditions
as provided in Article 23 and shall be reported to the examination and approval organ for approval via the administrative departments
of foreign trade and economic cooperation at the provincial level where the company to be established is located. The examination
and approval organ shall make a written decision on whether to approve or not within 45 days as of the acceptance of the complete
set of the above-mentioned documents. It shall issue a Certificate of Approval for Foreign-invested Enterprises to the approved enterprises,
which shall file an application to the registration organ by holding the Certificate within a month as of their acceptance of the
Certificate.

Article 28

The following documents shall be submitted to the examination and approval organ in applying for the establishment of a foreign-invested
business-starting investment management company:

(1)

establishment application;

(2)

contract and articles of association of foreign-funded business-starting investment management company;

(3)

the investors’ registration certificate (photocopy) and the certificate of the legal representative (photocopy);

(4)

relevant documents required by the examination and approval organ;

Article 29

A foreign-invested business-starting investment management enterprise shall give a clear indication of “INVESTMENT MANAGEMENT” in
its name. Except for the foreign-invested business-starting investment management enterprises any other foreign-funded enterprises
shall not do so.

Article 30

An overseas business-starting investment management enterprise, which has acquired the approval of engaging in business-starting investment
management under the authorization of FBIEs, shall file an application to the registration organ to handle the business registration
procedures within 30 days as of the approval day of the management contract.

An applicant shall submit the following documents to the business registration organ and shall be responsible for their authenticity
and effectiveness:

(1)

an application for registration signed by the chairman of the board of directors of the overseas business-starting investment management
enterprise, or by a competent person;

(2)

a management contract and the approval documents of the examination and approval organ;

(3)

articles of association or partnership agreement of the overseas business-starting investment management enterprise;

(4)

the overseas business-starting investment management enterprise’ legal license to do business;

(5)

the credit certification of the overseas business-starting investment management enterprise;

(6)

the power of attorney, resume and the certification of the identification of the person-in-charge of the Chinese project appointed
by the overseas business-starting investment management enterprise;

(7)

the certification of its business offices in China; All of the aforesaid documents should be written in Chinese, those written in
foreign languages other than Chinese shall be accompanied by good Chinese translations

Chapter VI Business Management

Article 31

An FBIE may engage in the following businesses:

(1)

It may make equity investments with all of its own capital through establishing new enterprises, or investing into an established
enterprise, or accepting the stock equities transferred by the investors of an established enterprise, or through other means as
permitted in the laws and regulations of the state;

(2)

It may offer business-starting investment consultancy services;

(3)

It may offer management consultancy to the invested enterprises;

(4)

It may engage in other businesses as approved by the examination and approval organ. The capital of an FBIE may be largely used to
make equity investments into its invested enterprise.

Article 32

A business-starting enterprise shall not engage in the following activities:

(1)

It shall not make investments into the areas in which foreign investments are prohibited by the state;

(2)

It shall not make direct or indirect investments into the listed securities and bonds of an enterprise, but after the invested enterprise
is listed, the shares held by the FBIE shall be an exception.

(3)

It shall not make direct or indirect investments into real property not for its own use;

(4)

It shall not make investments by way of loans;

(5)

It shall not make investments by embezzling the capital not in its ownership;

(6)

It shall not provide a loan or guaranty to others, but the bonds with a term of more than 1 year issued by its invested enterprise
and the investments in the nature of bonds that may be converted into equity investments to the invested enterprise shall be excluded
(this paragraph doesn’t concern whether the invested enterprise is enpost_titled to issue such bonds or not);

(7)

It shall not engage in other activities as prohibited in the law and regulations and the contract of the FBIE.

Article 33

The investors shall stipulate a term for foreign investments in the contract of the FBIE.

Article 34

The incomes of an FBIE shall be generated largely from selling the stock equities it holds in the invested enterprise or from disposing
of the stock equities by other means. When an FBIE sell the stock equities it holds in the invested enterprise or dispose of the
stock equities by other means, it may, in accordance with the law, choose one of the following available methods of withdrawing:

(1)

It may transfer part of or all of the stock equities it holds to other investors;

(2)

It may sign an agreement of stock equity counter-purchase with the invested enterprise, which may counter-purchase the stock equities
held by the business-starting investment enterprise under certain circumstances;

(3)

Where the invested enterprise satisfies the conditions of listing as provided by laws and administrative regulations, it may apply
for listing in the securities markets of home and abroad. In accordance with the law, the FBIE may transfer the shares it holds in
the invested enterprise through the securities markets;

(4)

The other methods that are allowed by the laws and administrative regulations of China. The concrete regulatory measures concerning
the invested enterprise’ counter-purchase of the stock equities held by the FBIE shall be separately formulated by the examination
organ jointly with the registration organ.

Article 35

An FBIE shall make tax declaration in accordance with the tax laws of the state. As to a non-legal-person organization, in accordance
with the law, it may request all the investing parties to file returns for enterprise income taxes on their own, or file an application
by itself, after the application has been approved, it shall, in accordance with the law, calculate and pay the enterprise income
tax in a consolidated way.

The concrete regulatory measures concerning the levy of enterprise income tax upon the non-legal-person FBIEs shall be promulgated
separately by the State Administration of Taxation.

Article 36

Where the profit or other income obtained by a foreign investor from an FBIE is to be remitted abroad, it shall be paid from the foreign
currency account of the FBIE, or shall be remitted through an entrusted bank with the foreign currencies purchased from the bank.
Such payment or remittance shall be made on the basis of the allocation decision made by the joint management committee or the board
of directors, the audit report issued by an accountant office, the certification of inflow of foreign investments and the report
on the verification of capital, the certification of tax payment and the tax return (where an enterprise enjoys tax concession, it
shall present the evidential documents of tax concession issued by the tax authorities).

In accordance with the law, a foreign investor may request to purchase foreign currencies to remit the investments withdrawn from
the FBIE. As to an FBIE in the form of company, the opening and access of foreign currency account, changes of capital and other
matters involving the incomes and expenses of foreign currencies shall be handled pursuant to the existing regulations concerning
the administration of foreign exchange. But relevant regulations on the non-legal-person FBIEs shall be formulated separately by
the State Administration of Foreign Exchange.

Article 37

The investors shall stipulate the business term of the FBIE i

CIRCULAR ON INVESTIGATING ADOPTION OF THE ENTERPRISE ACCOUNTING SYSTEM BY ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Finance

Circular on Investigating Adoption of the Enterprise Accounting System by Enterprises with Foreign Investment

CaiBanKuai [2003] No. 8

March 6, 2003

Financial Departments (Bureaus) of provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the state plan:

Enterprises with Foreign Investment have started adoption the Enterprise Accounting System as of January 11, 2002 and in order to
further understand the implementation of the Enterprise Accounting System by enterprises with foreign investment, please arrange
for the local certified public accountants firms engaged in auditing enterprises with foreign investment to fill in the attached
Questionnaires (Attachment 1). The certified public accountants firms shall provide opinions and materials on the following issues
according to the actual circumstances:

For enterprises with foreign investment that have adopted the Enterprise Accounting System, what problems exist in account reconciliation
and actual execution? What are the main reasons?

II.

For enterprises with foreign investment that have not adopted the Enterprise Accounting System, what are the main reasons for not
adopting the Enterprise Accounting System? What are the accounting standards that have been adopted by the certified public accountants
firms in auditing the annual reports of the enterprises with foreign investment? What type of auditing opinions has the certified
public accountants firms issued? In case the certified public accountants have issued non-standard auditing opinion, what are the
opinions from the relevant departments of the administration for industry and commerce and taxation?

III.

What are the opinions and suggestions of the certified public accountants firms on the implementation of the Enterprise Accounting
System by the enterprises with foreign investment? What are the opinions and suggestions of the enterprise with foreign investment
on execution of the Enterprise Accounting System?

The local accounting administration of financial department are required to summarize the questionnaires and the relevant materials
filled in by the certified public accountants firms, prepare a written report, which should be sent to the Accounting Department
of the Ministry of Finance together with the materials (original or copy) provided by the certified public accountants firms by May
30, 2003.

The Ministry of Finance
2003-03-06

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

The State Administration of Foreign Exchange

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

HuiFa [2003] No.50

April 3, 2003

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

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

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

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

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

(I)

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

(II)

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

(III)

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

(IV)

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

(V)

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

II.

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

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

III.

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

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

(I)

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

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

(II)

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

(III)

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

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

IV.

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

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

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

This is hereby the notification.

Attachments:

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

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

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

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

The State Administration of Foreign Exchange
2003-04-03

1...345...22 Page 4 of 22

Russia Laws

The basic law

Concluding and Transitional Provisions

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON CERTIFICATION AND ACCREDITATION

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE VERIFICATION PROCEDURE OF SELL FOREIGN EXCHANGE FOR PAYMENT UNDER THE ITEM OF ADVANCED PAYMENT

REGULATION ON THE URGENT HANDLING OF THE ENTRY-EXIT INSPECTION AND QUARANTINE OF FRONTIER AND PORT PUBLIC HEALTH EMERGENCIES

REGULATION OF THE PEOPLE’S REPUBLIC OF CHINA ON THE CUSTOMS PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

CIRCULAR OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE MEASURE FOR THE ADMINISTRATION OF PROJECTS (SUB-PROJECTS) WITH THE WORLD BANK’S TECHNICAL ASSISTANCE

DECISION OF THE STATE COUNCIL ON FURTHER STRENGTHENING THE WORK OF INTELLECTUAL PROPERTY PROTECTION

REGULATIONS ON MANAGEMENT OF INTERNATIONAL FREIGHT FORWARDERS

PROVISIONS CONCERNING THE ADMINISTRATION OF FOREIGN-FUNDED BUSINESS-STARTING INVESTMENT ENTERPRISES

CIRCULAR ON INVESTIGATING ADOPTION OF THE ENTERPRISE ACCOUNTING SYSTEM BY ENTERPRISES WITH FOREIGN INVESTMENT

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

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