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ANNOUNCEMENT NO.35, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS ON COLLECTING ANTI-DUMPING DUTY ON EPICHLOROHYDRIN (ECH) ORIGINATING FROM RUSSIA, THE REPUBLIC OF KOREA, JAPAN AND THE UNITED STATES

Announcement No.35, 2006 of the General Administration of Customs on Collecting Anti-dumping Duty on Epichlorohydrin (ECH) Originating
from Russia, the Republic of Korea, Japan and the United States
[2006] No. 35

In accordance with Anti-dumping Regulations of the People’s Republic of China, the Tariff Committee of the State Council decides to
collect anti-dumping duties on imported epichlorohydrin (ECH) originating from Russia, the Republic of Korea, Japan and the United
States as from June 28, 2006, and the duration of the collection shall be 5 years. The Ministry of Commerce specially released Announcement
No.44, 2006 (see Appendix 1 for details) therefor. Related matters in implementation are announced as follows: 1. As from June 28, 2006, related departments shall impose anti-dumping duties and value-added tax in the linkage of import, besides
import duties in line with current regulations, on imported ECH originating from Russia, the Republic of Korea, Japan and the United
States in line with tax rates listed in Appendix 2 of this Announcement and the following computing formulas, different suppliers
with different tax rates:

Anti-dumping duties = price after duties * anti-dumping rate

Value-added tax in the linkage of import = (price after duties + duties + anti-dumping duty) * rate of value-added tax in the linkage
of import

See Appendix 1 for detailed description of goods on which anti-dumping duties shall be imposed. 2. Importers must provide certificate of origin to the Customs for import of ECH; in case the goods are from Russia, the Republic of
Korea, Japan or the United States, commercial invoices from the original manufacturers shall be required as well. For those who cannot
provide the certificate of origin and have failed to assure that the goods are from Russia, the Republic of Korea, Japan or the United
States after investigation, the Customs shall collect the anti-dumping duties in accordance with the highest rate of anti-dumping
rate listed in Appendix 2. In case the goods are from Russia, the Republic of Korea, Japan or the United States, but import operators
cannot provide commercial invoices from the original manufacturers, the Customs shall collect the anti-dumping duties in accordance
with the rate of anti-dumping rate applied to other companies of relevant countries listed in Appendix 2.
3. As to issues on the collection of anti-dumping duties on ECH originating from Russia, the Republic of Korea, Japan and the United
States of processing trade bonded import, the Customs shall carry out the collection in accordance with Announcement No.9, 2001 of
General Administration of Customs of the People’s Republic of China and Decree No.11 of General Administration of Customs of the
People’s Republic of China.
4. If importers have imported ECH originating from Russia, the Republic of Korea, Japan and the United States and paid anti-dumping deposit
after the implementation of provisional anti-dumping measures, the anti-dumping deposit shall be calculated in line with the scope
of goods and anti-dumping rate specified in this Announcement. The anti-dumping deposit shall be transferred to be anti-dumping duties;
the deposit of value-added tax in the linkage of import shall be transferred to be value-added tax in the linkage of import as well.
Related enterprises may ask the Customs in the place of the collection for refund of excess within 6 months as from Jun 28, 2006.
The insufficient section shall be exempted.
5. When encountering the same or similar goods on which the Customs cannot make sure whether to impose anti-dumping duties on or not
in the process of collecting anti-dumping duties of the import ECH, please apply to the Ministry of Commerce for judgment. The Customs
shall act in accordance with judgment thereof.

Specially announced hereby

Appendix: 1. Announcement No.44, 2006 of the Ministry of Commerce of the People’s Republic of China (omitted) 2. Form of Anti-dumping Rate of Epichlorohydrin (ECH) General Administration of Customs June 27, 2006


￿￿


Appendix 2


Form of Anti-dumping Rate of Epichlorohydrin (ECH)


￿￿














































State of Origin


Name of Companies


Anti-dumping Rate


Russia


The Joint Stock Company Kaustik


17.9%


Limited Liability Company ￿￿Usoliekhimprom￿￿


5.4%


Other Russian Companies


71.5%


ROK


HAN WHA CHEMICAL CORPORATION


4.0%


Samsung Fine Chemicals Co., LTD


3.8%


Other Companies from the Republic of Korea


71.5%


Japan


Kashima Chemical Co., Ltd.


4.7%


DAISO CO., LTD.


0%


Other Japanese Companies


71.5%


US


The Dow Chemical Company


4.3%


Other American Companies


71.5%



 
General Administration of Customs
2006-06-27

 







INTERIM MEASURES FOR THE ADMINISTRATION OF FOREIGN ASSISTANCE MATERIAL PROJECTS

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

No.5

Interim Measures for the Administration of Foreign assistance material projects examined and approved at the 6th ministerial conference
of the year 2006 of the Ministry of Commerce of the People’s Republic of China on May 17, 2005 is hereby announced and shall come
into force as of September 1, 2006.
Minister of the Ministry of Commerce, Bo Xilai

July 7, 2006

Interim Measures for the Administration of Foreign Assistance Material Projects
Chapter I General Provisions

Article 1

The Measures is formulated in accordance with the relevant laws, administrative regulations for the purpose of strengthening the
administration of foreign assistance material projects( hereinafter referred to as “foreign assistance material projects”, ensuring
the quality hereof and enhancing the economic and social efficiency of foreign aid.

Article 2

The foreign assistance material projects as stated in the Measure shall refer to, under the free assistance, loan with no or low
interest as well as other special aid fund provided by the Chinese government, such foreign aid programs as common products, necessities,
technological products or unique equipment which purchased by, and such supporting technologies as relevant installation, adjustment,
and operation guidance if necessary, provided by the enterprises designated by the Chinese government.

Article 3

The Ministry of Commerce shall administer foreign assistance material projects in accordance with the Measures.

Article 4

The foreign assistance material projects as the main implementary body selected by the Ministry of Commerce shall, in accordance
with the Measures as well as other relevant laws, administrative regulations, implement the inter-governmental agreement of foreign
assistance material projects signed with the Chinese government, and shall enjoy the relevant rights and bear the relevant obligations
and legal liability.

Chapter II Confirmation of supply list

Article 5

The Ministry of Commerce shall, in accordance with the inter-governmental agreement of foreign aid, determine the supply list.

The supply list shall include such basic information as name of supplying material, technology standard, quantity of supplying material,
quality standard and technology service and etc.

Article 6

The following principles shall be observed in the process of determining supply list:

(1)

The basic requirement of the supplier shall, in accordance with the economic and reasonable principle, be satisfied within the limit
of aid fund;

(2)

Competition shall be removed or limited by any means;

(3)

The products produced in the People’s Republic of China shall, under the same applicable condition, be chosen;

(4)

The volume and reliable products shall be chosen, unless the receiver has specific requirement. Where the product has such compulsory
standards as guarantee the heath of human body, life and property safety as well as environmental protection, it shall accord with
the standard hereof.

Article 7

The Ministry of Commerce, shall, in accordance with the requirement of Article 6 and the relevant polices, formulate and promulgate
Catalogue for the Guidance of Foreign Aid Material and the receiver shall offer the requirement of providing material and the supply
list determined by the Ministry of Commerce.

The Ministry of Commerce shall undertake dynamic administration upon Catalogue for the Guidance of Foreign Aid Material, rechecking
and readjusting it once every year.

Article 8

Where the supply list shall be determined outside the Catalogue for the Guidance of Foreign Aid Material under specific circumstances,
the Ministry of Commerce may entrust the intermediary agencies or enterprises to act as the list organizer of foreign assistance
material projects (hereinafter referred to as “list organizer”) to provide economic and technology service as the determination of
data of supply list as well as reference price.

The Ministry of Commerce shall not entrust such an intermediary agency or enterprise as have been subject to criminal punishment,
administrative penalty due to its involvement in illegal business operation or violation of the provisions related to the administration
hereof or have serious fault in the process of undertaking the task of the administration of foreign assistance material projects,
to act as list organizers.

Article 9

The order organizer shall, strictly abiding by the principles raised in Article 6 , raise the proposal about the supply list and
be responsible for the accuracy and applicability of the content hereof.

The inventory organizer shall submit the proposed supply list to the Ministry of Commerce for approval. The Ministry of Commerce shall,
within 20 working days, inform the list organizer the auditing result in written form.

Article 10

The list organizer shall not collude with the tender enterprises undertaking foreign assistance material projects to raise the supply
list which is disadvantageous to other valid tender enterprises, or disclose information about the inventory hereof to the relevant
tender or bid negotiation enterprises, or collude with the supplier to seek unjustifiable benefits.

Article 11

The Ministry of Commerce shall submit its settled supply list about foreign assistance material projects to the receiver for confirmation.

In the process of implementing foreign assistance material projects, any unit shall, without the approval of the Ministry of Commerce,
not alter the information of the inventory hereof. Where the inventory really needs adjusting, it shall be submitted to the Ministry
of Commerce for approval, which shall, within 10 working days as of having received the acceptance application, make settlement and
inform the applicant in written form; where it needs the approval of the receiver, the Ministry of Commerce shall, as of 10 working
days after the formal confirmation is made by the receiver, make settlement and inform the applicant in written form.

Chapter III The implementation and administration of foreign assistance material projects

Article 12

The Ministry of Commerce shall, within the enterprise scope with the qualification of foreign assistance material projects in accordance
with Measures for Determining the Qualification of Enterprises of Undertaking Foreign Assistance Goods Supply Projects (for Trail
Implementation) (Decree No. 10, 2004 the Ministry of Commerce), choose the implementing enterprises hereof by means of inviting bid
or negotiating bid. The detailed means shall be determined by the Ministry of Commerce in accordance with the scale, nature, specialty
and character of the foreign assistance material projects.

Article 13

The Ministry of Commerce, shall not invite such enterprises as have been subject to criminal punishment, administrative penalty within
two years because of its illegal business activities or its violation of the relevant national provisions about the administration
of foreign aid, or have committed serious faults and caused unfavorable influence in the process of implementing foreign assistance
material projects, to participate in the bid invitation and negotiation hereof.

Article 14

Where the selected enterprises hereof alter the commitment of bid or bid invitation, the Ministry of Commerce may choose again the
enterprises undertaking foreign assistance material projects among the other bidding enterprises to organize bid invitation or bid
negotiation.

Article 15

The Ministry of Commerce shall deliver task notice about foreign assistance material projects to the designated enterprises undertaking
foreign assistance material projects.

The task notice shall be the proof of the foreign assistance material projects to handle the purchase, storage, checking, clearance,
transportation and entry and exit procedures of the relevant personals.

Article 16

Where the inter-governmental agreement of foreign assistance material projects needs signing contracts, the enterprises hereof shall,
in accordance with the authorization of the Ministry of Commerce, sign the foreign implementation contract hereof with the organs
designated by the receiver.

The rights, obligations and means of cooperation agreed by the parties to the contract shall be in conformity with laws, inter-governmental
agreement of foreign assistance material projects as well as the commitment in biding or bid negotiation.

The enterprise undertaking foreign assistance material projects shall, prior to the signing of the contract hereof, submit contract
version to be signed to the Ministry of Commerce for auditing. The Ministry of Commerce shall, within 20 working days as of having
received the contract version to be signed, inform the enterprises undertaking foreign assistance material projects of the result
of auditing in written form.

Article 17

The enterprises undertaking foreign assistance material projects shall, in accordance with the supply list confirmed by the Ministry
of Commerce as well as by the receiver and the commitment of biding or bid invitation, or such activities as production, purchase,
be responsible for the acceptance check before the ex store, shall not alter such substantial contents without authorization as name
of articles, specification and type, technical parameter and standards, amount of supplied goods, manufacturer, meals of package,
technical service personal and its plan.

Article 18

The enterprises undertaking foreign assistance material projects shall, in accordance with the conditions of supplying goods committed
by bidding or bid invitation, handle storage, checking and quarantine as well as such particulars as domestic and international transport
and insurance from the production or purchase site to the destination, shall not alter the means of transportation and time limit
of arrival without authorization.

Article 19

The enterprise of foreign assistance material projects shall bear the responsibility of the quality of supplied goods after its arrival
at the destination and shall shoulder free change of products as well as the necessary expenses once problems about the quality of
products arises not from the foreign party within the guarantee period.

Article 20

Where the provider has exerted inappropriate influence upon the choosing choice of the enterprise of foreign assistance material
projects or unfavorable effect upon the foreign aid material program, the Ministry of Commerce shall list the provider in the name
list of unqualified providers. The enterprise of foreign assistance material projects shall not purchase the products of the providers
listed herein.

The measures for the administration of unqualified providers shall be prescribed otherwise by the Ministry of Commerce.

Article 21

In the process of implementing the projects hereof, the enterprises undertaking foreign assistance material projects shall neither
illegally contract/subcontract the charged foreign assistance material projects, nor misappropriate the foreign assistance fund to
undertake other activities irrelevant to the projects.

Article 22

Where the foreign assistance material projects needs providing the relevant technology service, the enterprise of foreign assistance
projects shall, in accordance with the characteristics of the provided material and technology service plan required by the receiver,
send technology service personnel to provide to the receiver such services as installation, adjustment, operational guidance and
training local technology personal. The technology service plan shall be implemented after having been examined by the Ministry of
Commerce.

The enterprise of foreign assistance material projects shall select excellent technology service personnel and provide the necessary
material conditions in the implementation of technology service to ensure the quality of technology service. The enterprise of foreign
assistance material projects may, if necessary, take in technology service personnel from the receiver to come to China to receive
the operational guidance and technology training.

Article 23

The personnel responsible for the implementation of foreign assistance material projects shall abide by the relevant laws and rules
of China as well as of the receiver, keep national secret and confidential information of technology.

Article 24

The Ministry of Commerce shall be responsible for the supervision and administration of foreign assistance material projects and
the allocation of funds as well as handling the inter-governmental activities related to the projects. The embassies and consulates
(office of economic and commercial counselor) shall assist the Ministry of Commerce to undertake supervision and administration upon
the foreign assistance material projects, and handle the relevant inter-governmental affairs with the authorization of the Ministry
of Commerce.

Article 25

In the process of implementing the projects, the enterprise of foreign assistance material projects shall arrange and store the relevant
documents and submit the implementation and progression of the projects to the Ministry of Commerce and, within 20 days after the
completion of the projects, submit to the Ministry of Commerce the project completion report and the relevant documents.

Article 26

The Ministry of Commerce shall, in accordance with the project completion report, be responsible for handling the inter-governmental
handling-over procedure with the government of the receiving party.

Article 27

The Ministry of Commerce shall be responsible for evaluating the implementation and result of the foreign assistance material projects.

Article 28

The foreign assistance material purchased and transported from the tariff boundary of the People’s Republic of China shall, in accordance
with measures for the administration of checking the foreign assistance material formulated by the Ministry of Commerce and the authorities
of Quality Supervision, Inspection and Quarantine, be subject to the compulsory examination.

The foreign assistance material purchased and transported from the tariff boundary of the People’s Republic of China shall be undertaken
the checking of export site.

Article 29

The foreign assistance material purchased and transported from the tariff boundary of the People’s Republic of China shall, in accordance
with the regulations for the checking and clearance of foreign assistance material signed between the Ministry of Commerce and the
General Customs Administration, handle the checking and clearance procedures hereof.

Article 30

The enterprise of foreign assistance material projects shall, in the process of implementing hereof, handle cargo transport insurance
as well as other necessary insurances. As for the losses within the scope of insurance liability, the enterprise shall claim losses
to the insurance company of itself.

Article 31

The Ministry of Commerce may give appropriate compensation to the enterprises undertaking foreign assistance material projects for
the economic losses and expense adjustment arisen from the following causes:

(1)

War, turbulence, coup, strike and political factors between the two nations (such as policy adjustment, cession of diplomatic relations
and etc.);

(2)

Adjustment about goods supply with the agreement between the Ministry of Commerce and the receiver;

(3)

Force majeure, unless the insurance shall be handled in accordance with the prescription in Article 30 .

Except the prescription in the precedent paragraph, other risks in the process of implementing foreign assistance material project
shall be born by the enterprise of its own.

Chapter IV Legal responsibilities

Article 32

Where the list organizer has any of the following occasions, the Ministry of Commerce shall give warming and may fine less than 30,000
Yuan:

(1)

The name of articles, technology standard, quality standard, amount of supplied goods, technology service and reference price in
the inventory have serious error;

(2)

The organizer violates the inventory principle in Article 6 of the Measures;

(3)

The organizer, in violation of Article 10 of the Measures, colludes with the relevant bidding enterprises to raise the inventory,
which is unfavorable to other bidding enterprises, or disclose the information of supplied goods to the relevant bidding or bid negotiation
enterprises in advance, or colludes with providers to seek inappropriate interest.

Article 33

Where the enterprise participating biding or bid negotiation of foreign assistance material projects has one of the following acts,
the Ministry of Commerce shall give warming to the enterprise and may fine 30,000 Yuan; where the enterprise has been selected, the
selection shall be null and void; where the enterprise violates the relevant laws, administrative rules, it shall, in accordance
with laws and administrative rules, be subject to administrative penalty; where the acts of the enterprise constitutes a crime, the
enterprise shall be investigated for criminal responsibility according to law.

(1)

seeking unfair competition advantage by fraud;

(2)

colluding to bull price;

(3)

disturbing tender and bid order by illegal means.

Article 34

Where the enterprise of foreign assistance material projects has one of the following occasions, the Ministry of Commerce shall give
warming to the enterprise hereof, and may impose a fine of less than 30,000 Yuan; where the enterprise violates the relevant laws,
administrative rules, it shall, in accordance with laws and administrative rules, be subject to administrative penalty; where the
acts of the enterprise constitutes a crime, the enterprise shall be investigated for criminal responsibility according to law.

(1)

alters the commitment of bidding or bid negotiation;

(2)

illegally contracts or subcontracts its charged foreign assistance material projects;

(3)

refuses to fulfill the foreign implementation contract and the commitment of bidding or bid negotiation, and thereby have seriously
hindered the normal operation of foreign assistance material projects and exerted side effect in the international community;

(4)

seriously violates the prescription of the Measures and have caused the relevant economic losses more than 100,000 Yuan;

(5)

misappropriates foreign assistance fund to undertake activities irrelevant to the projects, and have influenced the normal implementation
of the foreign assistance material program;

(6)

purchases the products of the providers listed in the name list of unqualified providers;

(7)

The personnel implementing the foreign assistance material projects violate the prescription in Article 23 and have exerted side
effect in the international community.

Chapter V Supplementary Provisions

Article 35

The Measures shall be interpreted by the Ministry of Commerce.

Article 36

The Measures shall come into force as of September 1, 2006.



 
The Ministry of Commerce
2006-07-07

 







ANNOUNCEMENT NO.86, 2006 OF THE MINISTRY OF COMMERCE ON PROMULGATING QUALIFICATION STANDARDS FOR STATE TRADE EXPORT ENTERPRISES OF TUNGSTEN PRODUCTS, STIBIUM PRODUCTS AND SILVER OF 2007, QUALIFICATION STANDARDS ON EXPORT SUPPLYING ENTERPRISES OF TUNGSTEN PRODUCTS, STIBIUM PRODUCTS OF 2007, AND ANNUAL EXAMINATION DECLARATION PROCEDURES

Announcement No.86, 2006 of the Ministry of Commerce on Promulgating Qualification Standards for State Trade Export Enterprises of
Tungsten Products, Stibium Products and Silver of 2007, Qualification Standards on Export Supplying Enterprises of Tungsten Products,
Stibium Products of 2007, and Annual Examination Declaration Procedures

[2006] No.86

In accordance with regulations of the Provisional Measures on Export Administration on Tungsten and Tungsten Products, and Stibium
and Stibium Products, Provisional Measures on Qualification Standards on Export Supplying Enterprises of Tungsten Products and Stibium
Products, and the Administrative Measures on Silver Export, the Qualification Standards on State Trade Export Enterprises of Tungsten
Products, Stibium Products and Silver of 2007, Qualification Standards on Export Supplying Enterprises of Tungsten Products, Stibium
Products of 2007, and the Annual Examination Declaration Procedures are now announced (foreign-invested enterprises are excluded).

Appendix:

1.

Qualification Standards on State Trade Export Enterprises of Tungsten Products in 2007

2.

Qualification Standards on State Trade Export Enterprises of Stibium Products in 2007

3.

Qualification Standards on State Trade Export Enterprises of Silver in 2007

4.

Qualification Standards on Export Supplying Enterprises of Tungsten Products in 2007

5.

Qualification Standards on Export Supplying Enterprises of Stibium Products in 2007

6.

Annual Examination Declaration Procedures for the Qualification Examination as State Trade Export Enterprises Tungsten Products, Stibium
Products and Silver or Export Supplying Enterprises of Tungsten Products, Stibium Products in 2007

The Ministry of Commerce

November 3, 2006
Appendix 1
Qualification Standards on State Trade Export Enterprises of Tungsten Products in 2007

1.

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is
practiced and the import and export operation qualification or the record and registration of foreign trade operators has been acquired
together with a possession of independent legal personality.

2.

The IS09000 quality system is certified and passed.

3.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

4.

The circulating enterprise must, in accordance with the stipulations in The Interim Measures on the Qualification Certification of
Export Suppliers of Tungsten Products and Stibium Products, purchase the products of the manufacturing enterprise who has acquired
the qualification as an export supplier.

5.

The circulating enterprise’s amount of exportation of tungsten products per year from 2003 to 2005 exceeds 180 tons with the statistics
issued by General Administration of Customs as reference.

6.

None violation of the State’s relevant laws and regulations from 2003 to 2005 is recorded.

7.

The manufacturing enterprise must also fulfill the following conditions:

(1)

A metallurgy and processing enterprise examined and approved by the State’s relevant authorities;

(2)

The standardized discharge certificate granted by the environment protection department at the provincial level is acquired, together
with the environmental monitoring report provided by the department on the standardized discharge of the current year;

(3)

For the tungsten manufacturing enterprise, tungsten products are its staple, and according to the average annual output in 2004 and
2005, the amount of producing and processing, which equals to APT, is 3,000 tons or above per year, and the output of tungsten powder
and tungsten carbide alloy (or tungsten filament, tungsten material, etc.) is 500 tons or above per year;

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain
of products and a high proportion of deep processing.(4) If the product of the enterprise is listed on the Exportation Catalogue
of Chinese New and High Technology Products issued by the Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance,
General Tax Bureau and the General Administration of Customs, or on the Catalogue of Chinese New and High Technology Products issued
by the Ministry of Science and Technology, or if the product of the enterprise is identified as the new and high technology product
by the Ministry of Science and Technology, the third condition may be alleviated according to the individual case of the product.

Appendix 2
Qualification Standards on State Trade Export Enterprises of Stibium Products in 2007

1.

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is
practiced and the import and export operation qualification has been acquired, or the registration as a foreign trade operator has
been acquired together with a possession of independent legal personality.

2.

The IS09000 quality system is certified and passed.

3.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

4.

The circulating enterprise must, in accordance with the stipulations in The Interim Measures on the Certification of Export Suppliers
of Tungsten Products and Stibium Products, purchase the products of the manufacturing enterprise who has acquired the qualification
as an export supplier.

5.

The circulating enterprise’s average amount of exportation of stibium products per year from 2003 to 2005 is 190 tons or above, with
the statistics issued by the General Administration of Customs as reference.

6.

None violation of the State’s relevant laws and regulations from 2003 to 2005 is recorded.

7.

The manufacturing enterprise must also fulfill the following conditions:

(1)

A metallurgy and processing enterprise examined and approved by the State’s relevant authorities;

(2)

The standardized discharge certificate granted by the environment protection department at the provincial level is acquired, together
with the environmental monitoring report provided by the department on the standardized discharge of the current year;

(3)

For the stibium manufacturing enterprise, stibium products are its staple, and according to the average annual output in 2004 and
2005, the producing and processing amount of refined stibium is 5,000 tons or above per year, and the output of antimony oxide is
3,000 tons or above per year;

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain
of products and a high proportion of deep processing.

(4)

If the product of the enterprise is listed on the Exportation Catalogue of Chinese New and High Technology Products issued by the
Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance, General Tax Bureau and the General Administration
of Customs, or on the Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, or
if the product of the enterprise is identified as the new and high technology product by the Ministry of Science and Technology,
the third condition may be alleviated according to the individual case of the product.

Appendix 3
Qualification Standards on State Trade Export Enterprises of Silver in 2007

1.

Manufacturing Enterprise

(1)

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is
practiced and the import and export operation qualification has been acquired, or the record and registration of foreign trade operators
has been acquired together with a possession of independent legal personality for two years or above.

(2)

For the manufacturing enterprise in the west of China, an annual output of silver is 30 tons or above, for others, that is 60 tons
or above, with the statistics of 2005 issued by the State Bureau of Statistics as reference.

(3)

If the product of the enterprise is listed on the Exportation Catalogue of Chinese New and High Technology Products issued by the
Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance, General Tax Bureau and the General Administration
of Customs, or on the Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, or
if the product of the enterprise is identified as the new and high technology product by the Ministry of Science and Technology,
the second condition may be alleviated according to the individual case of the product.

(4)

The discharge of industrial dust, waste water, and exhaust gas emitted through the production process of the manufacturing enterprise
fulfills the State’s current standards (especially the arsenical dust and water from the fire smelting process of dore silver, which
must be decontaminated), and the standardized discharge certificate granted by the environmental protection department at the provincial
level has been acquired, together with the environmental monitoring report provided by the department on the standardized discharge
of the current year.

(5)

The dore silver smelting process and the electrolyzing smelting process are accomplished within the same enterprise as a legal person,
and the environmental protection measures in the electrolyzing production of dore silver fulfill the requirements in Item (4)

(6)

When the silver recycling enterprise processes argentiferous waste, secondary-pollution must be avoided and the discharge must reach
the State’s current standards.

(7)

The production of manufacturing enterprise is in accordance with the requirements in Law on Safety in Production of the People’s Republic
of China, the quality of the products reaches the State’s current standards, and there is no complaint on the quality of the products
from clients.

(8)

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

(9)

The IS09000 quality system is certified and passed.

(10)

None violation of the State’s relevant laws and regulations from 2003 to 2005 is recorded.

Under the same conditions, priority is given in the examination and approval of the export trade qualification to the enterprise which
has passed the ISO14000 environmental management standards certification, has registered the trademark of its products to the international
market, and has established a long chain of products and a high proportion of deep processing.

2.

Circulating Enterprise

(1)

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is
practiced and the import and export operation qualification has been acquired, or the registration as a foreign trade operator has
been acquired together with a possession of independent legal personality for five years or above.

(2)

The business performance on silver products from 2003 to 2005 is sound.

(3)

The annual import and export value of the foreign trade circulating enterprise in the western area is $50,000,000 or above, and the
value of the enterprise in other areas is $100,000,000 or above, with the statistics of 2005 issued by the General Administration
of Customs as reference.

(4)

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

(5)

The IS09000 quality system is certified and passed.

(6)

None violation of the State’s relevant laws and regulations from 2003 to 2005 is recorded.

Appendix 4
Qualification Standards on Export Supplying Enterprises of Tungsten Products in 2007

1.

The export supplying enterprise of Tungsten products must be a smelting and processing enterprise examined and approved by the State’s
relevant authorities.

2.

The production capacity of tungsten products that equals to ammonium paratungstate (APT) is above 3,000 tons (with the existing production
capacity by the end of 2005 as reference and hereinafter the same), and the average amount of export supply from 2003 to 2005 is
above 1,000 tons per year.

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain
of products and a high proportion of deep processing.

3.

The quality of the products has reached current standards of the State or the standards in the field, and the IS09000 quality system
is certified and passed.

4.

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

5.

The recovery ratio for the main process from tungsten concentrates to APT is above 90%, and from APT to tungsten powder is above 97%.

6.

The energy consumption from tungsten concentrates to APT is less than 1 ton of standard coal per ton of products, and from APT to
tungsten powder is less than 4.6 tons of standard coal per ton of products.

7.

The discharge of industrial dust, waste water, and exhaust gas, which is approved by the environmental protection department at the
provincial level, reaches the State’s current standards, and the inspection report granted by the environmental protection department
at the provincial level is acquired.

8.

The equipment is advanced, among which the major equipment, apparatus and instruments are manufactured in the 1990s and later.

9.

The tungsten concentrates and initial products purchased by the smelting enterprise are the products from the exploring enterprise
with exploration permission and from smelting enterprise with export supplying qualification.

Appendix 5
Qualification Standards on Export Supplying Enterprises of Stibium Products in 2007

1.

The export supplying enterprise of stibium products must be a smelting and processing enterprise examined and approved by the State’s
relevant authorities.

2.

The production capacity of stibium products is above 4,000 tons (with the existing production capacity by the end of 2005 as reference
and hereinafter the same), and the average amount of export supply from 2003 to 2005 is above 1,500 tons per year.

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain
of products and a high proportion of deep processing.

3.

The quality of the products has reached current standards of the State or the standards in the field, and the IS09000 quality system
is certified and passed.

4.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment,
medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with
a proof for the payment issued by the local labor and social security department.

5.

The general recovery ratio for the process from stibium concentrates to refined stibium is above 80%.

6.

The energy consumption of stibium smelting is less than 1.27 tons of standard coal per ton of products.

7.

The discharge of industrial dust, waste water, and exhaust gas, which is approved by the environmental protection department at the
provincial level, reaches the State’s current standards, and the inspection report granted by the environmental protection department
at the provincial level is acquired.

8.

The equipment is advanced, among which the major equipment, apparatus and instruments are manufactured in the 1990s and later.

9.

The stibium concentrates and initial products purchased by the smelting enterprise are the products from the exploring enterprise
with exploration permission and from smelting enterprise with export supplying qualification.

Appendix 6

Annual Examination Declaration Procedures for the Qualification Examination as State Trade Export Enterprises of Tungsten Products,
Stibium Products and Silver or Export Supplying Enterprises of Tungsten Products, Stibium Products in 2007

1.

The administrative department for commerce in each region , in accordance with the Appendix 1 and Appendix 2 and the requirements
of the State’s industrial policy, is to undertake the annual examination on qualification as the State trade export enterprise of
tungsten and stibium products among the local enterprises that have acquired the qualification in 2006, and to report the opinion
on the annual examination to the foreign trade department of the Ministry of Commerce before November 17, 2006. The annual examination
on the enterprises under the administration of the central government is to be practiced by the Ministry of Commerce.

2.

The administrative department for commerce in each region, in accordance with the Appendix 3, is to undertake the annual examination
on the local enterprises that have acquired the qualification as the State trade export enterprise of silver in 2006, and is to report
the opinion on the annual examination, as well as the applications of the newly added enterprises that fulfill the requirements of
State trade export enterprise of silver, to the foreign trade department of the Ministry of Commerce before November 17, 2006.

3.

The administrative department for commerce in each region, in accordance with the Appendix 4 and Appendix 5, is to undertake the annual
examination on the local enterprises that have acquired the qualification as the export supplying enterprise of tungsten and stibium
products in 2006, and is to report the opinion on the annual examination, as well as the applications of the newly added enterprises
that fulfill the requirements of export supplying enterprise of tungsten and stibium products, to the foreign trade department of
the Ministry of Commerce before November 17, 2006. The copy of the above documents is to be sent to the China Non-Ferrous Metals
Industry Association, China Chamber of Commerce for Importers and Exporters of Metals, Minerals and Chemicals, and the China Tungsten
Industry Association. The China Non-Ferrous Metals Industry Association, together with the China Chamber of Commerce for Importers
and Exporters of Metals, Minerals and Chemicals and the China Tungsten Industry Association, is to generalize their professional
opinion and report to the foreign trade department of the Ministry of Commerce before November 24, 2006.



 
The Ministry of Commerce
2006-11-03

 







GUIDANCE ON THE CORPORATION GOVERNANCE REFORM AND SUPERVISION OF BANK OF CHINA AND CHINA CONSTRUCTION BANK

China Banking Regulatory Commission

Guidance on the Corporation Governance Reform and Supervision of Bank of China and China Construction Bank

YinJianFa [2004] No.12

March 11th, 2004

Chapter I General Provisions

Article 1

Joint-stock reform for state-owned commercial banks is a brand new reform practice in China’s financial sector with great significance.
The present Guidance is hereby formulated with a view to ensuring the successful joint-stock reform experiments with the Bank of
China and China Construction Bank (hereinafter referred to as the two pilot banks).

Article 2

The general goal of the joint-stock reform for the two pilot banks is to lay special stress on such central links as reforming the
management system, perfecting the governance structure, transforming the operational system and improving the effect of operation
and to transform the two pilot banks into two modernized joint-stock commercial banks with adequate capital, strict internal control,
safe operation, sound service and benefit and international competitiveness within about three years.

Article 3

Through reform, the two pilot banks shall reach and remain at above the medium-level of the world’s top one hundred big banks by corporate
governance structure and internationally prevailing financial indicators.

Chapter II Reform of Corporation Governance

Article 4

The two pilot banks shall establish a standard shareholders’ general meeting, a standard board of directors, a standard supervisory
board and a standard system of senior management respectively.

The shareholders’ general meeting, board of directors, supervisory board and the system of senior management of the two pilot banks
shall be set up on the principles of separate establishment, separate three powers, effective constraint and coordinated development
in accordance with the requirements of modern corporate governance structure. A standard organizational framework shall be formed
by joint-stock commercial banks in accordance with the related provisions of the Corporate Law as well as other laws and regulations
so as to ensure independent operation and effective check and balance of various parties through a scientific and efficient system
of decision making, enforcement and supervision.

Article 5

The two pilot banks shall fairly and impartially choose strategic investors from home and abroad so as to change the unitary structure
of stock equity and realize diversification of investors.

By introducing strategic investors especially foreign strategic investors, the two pilot banks shall not only enhance capital strength
and improve their respective capital structure but also use for reference internationally advanced managerial experience, techniques
and methods, thus promoting their managerial modalities and operational concept to be compatible with those of internationally advanced
banks, and optimizing the corporate governance mechanism.

Article 6

The two pilot banks shall formulate clear and definite developing strategies so as to maximize value of the banks.

The two pilot banks shall proceed from their own conditions and the market guidance, identify their core competitive advantages and
market competitive advantages and formulate comprehensive development strategies in accordance with their development goals. And
the strategies shall be put into effect by year to ensure their realization.

Article 7

The two pilot banks shall establish scientific systems of decision making, internal control and risk management.

The two pilot banks shall establish and improve risk management system covering credit risk, market risk and operational risk etc.
and effectively identify, measure, supervise and control the risks.

Article 8

The two pilot banks shall, in accordance with the principle of intensive operating, exercise flatter organization and vertical business
management to consolidate business process and management process, optimize the system of organizational framework, improve resource
allocation and raise the efficiency of business operating.

Article 9

The two pilot banks shall, according to the requirement of human resources management for modern financial enterprises, deepen the
reform of the employment and personnel system, and establish market-oriented human resources management system and effective system
of incentives and constrains.

Article 10

The two pilot banks shall, in accordance with the standards and requirements for modern financial corporations and listed banks, exercise
prudent accounting system and stringent information disclosure system to enhance financial management and do a good job of information
disclosure.

Article 11

The two pilot banks shall reinforce the construction of information and technology and improve comprehensive management and service
functions in an all-round way.

Article 12

The two pilot banks shall implement the strategy of financial talents development, intensify targeted training programs and do well
in introducing excellent professionals to key posts, and at the same time, pay attention to the effective utilization and reasonable
allocation of human resources and play out the enthusiasm and creativity of available human resources.

Article 13

The two pilot banks shall bring into full play the specialized advantages of intermediary organizations and steadily step up the process
of joint-stock reform.

Chapter III Examination Indicators

Article 14

The examination indicators of the joint-stock reform for the two pilot banks shall include the net return on assets (ROA), the net
return on equity (ROE), cost income ratio, NPL ratio, capital adequacy ratio (CAR), large exposure concentration rate and provision
coverage ratio of non-performing loan.

Article 15

The ROA of the two pilot banks shall reach 0.6% in 2005, and international good standard in the year 2007.

Article 16

The ROE of the two pilot banks shall reach 11% in 2005, and further rise to over 13% in 2007 so as to ensure the effect of capital
investment and achieve good return.

Article 17

The cost income ratio of the two pilot banks shall be controlled within the range of 35% to 45% as of 2005.

Article 18

The two pilot banks shall divide the non-credit assets into five grades from 2004, examine the quality of all assets in accordance
with the five-grade classification, and keep the NPL ratio within the range of 3% to 5%.

Article 19

The two pilot banks shall manage capital in strict accordance with relevant provisions in the Regulations on Capital Adequacy Ratio
of Commercial Bank as of 2004 and, the CAR shall be kept at above 8% at any time point.

Article 20

The two pilot banks shall take effective measures to strictly control the centralized risk of the accreditation to the same borrower,
and the proportion of loan balance for the same borrower in the capital balance of the commercial banks shall be no more than the
risk indicator of 10% as of 2005.

Article 21

The provision coverage ratio of NPL shall reach 60% for the Bank of China and 80% for China Construction Bank at the end of 2005,
and be increased continuously by the end of 2007.

Chapter IV Examination and Reporting System

Article 22

The two pilot banks shall intensify efforts of bad assets disposal.

The two pilot banks shall investigate into law and regulation violating cases and severely punish the personnel involved in such breaching
of laws, regulations and disciplines. Asset recovery should be earnestly carried out, preventing a few enterprises from evading their
liabilities by the chance of reform and earnestly keeping away moral hazards. A preliminary report on the whole work of investigation
and corresponding measures shall be submitted before the end of 2004.

Article 23

A strict accountability system shall be exercised by the two pilot banks in the reform with the responsibilities implemented in accordance
with the goals and tasks for the reform of state-owned commercial banks established by the State Council. The chairmen of the board
of the two pilot banks shall bear primary responsibility.

The two pilot banks shall apply management by objective and make assessment of each stage’s work through strict examination and appraisal,
which shall be submitted to the Leading Group of Pilot Joint-stock Reform for Solely State-owned Commercial Banks under the State
Council on a quarterly basis and comprehensive and strict examination and appraisal shall be conducted once a year. Latest developments
of the reform shall be disclosed in a proper way to accept supervision from the society.

Article 24

China Banking Regulatory Commission will examine and supervise the reform of corporate governance structure and various financial
indicators of the two pilot banks through overall examination, examination by year and quarterly report supervision. Results of examination
and supervision shall be reported to the Leading Group of Pilot Joint-stock Reform for Solely State-owned Commercial Banks under
the State Council on a yearly and quarterly basis.

Chapter V Supplementary Provisions

Article 25

Interpretation of this Guidance is subject to China Banking Regulatory Commission.

Article 26

This Guidance shall come into effect as of March 11th, 2004.



 
China Banking Regulatory Commission
2004-03-11

 







AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF UGANDA ON THE RECIPROCAL PROMOTION AND PROTECTION OF INVESTMENTS

AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF UGANDA ON THE RECIPROCAL
PROMOTION AND PROTECTION OF INVESTMENTS

The Government of the People’s Republic of China and the Government of the Republic of Uganda hereinafter referred to as the Contracting
Parties,

Desiring to strengthen their economic cooperation by creating favourable conditions for investments by investors of one Contracting
Party in the territory of the other Contracting Party;

Recognising that the encouragement and reciprocal protection of such investments will be conducive to the stimulation of business
initiative and will increase prosperity of both Contracting States;

Convinced that the promotion and protection of these investments would succeed in stimulating transfers of capital and technology
between the two Contracting States in the interest of their economic development,

Have agreed as follows:

Article 1

Definitions

For the purpose of this Agreement:

1.

The term “investment” means every kind of property, such as goods, rights and interests of whatever nature, and in particularly though
not exclusively, includes:

(a)

tangible, intangible, movable and immovable properly as well as any other right in rem such as mortgages, liens, usufructs, pledges
and similar rights;

(b)

shares, debentures, stock and any other kind of participation in companies;

(c)

claims to money or to any other performance having an economic value associated with an investment;

(d)

intellectual and industrial property rights such as copyrights, patents, trademarks, industrial models and mockups, technical processes,
know-how, trade names and goodwill, and any other similar rights;

(e)

business concessions conferred by law or under contract, including concessions to search for, cultivate, extract or exploit natural
resources,

Any change in the form in which properties are invested does not affect their character as investments provided that such change is
in accordance with the laws and regulations of the Contracting Party in whose territory the investment has been made.

2.

The term “investor” means

(a)

natural persons who have nationality of either Contracting Party in accordance with the laws of that Contracting Party;

(b)

legal entities, including company, association, partnership and other organization, incorporated or constituted under the laws and
regulations of either Contracting Party and have their headquarters in that Contracting Party.

3.

The term “return” means the amounts yielded from investments, including profits, dividends, interests, capital gains, royalties, fees
and other legitimate income.

4.

For the purposes of this Agreement, the term “territory” means respectively:

-for the People’s Republic of China, the territory of the People’s Republic of China, including the territorial sea and air space
above it, as well as any area beyond its territorial sea within which the People’s Republic of China has sovereign rights of exploration
for and exploitation of resources of the seabed and its sub-soil and superjacent water resources in accordance with Chinese Law and
international law;

-for Uganda, the Republic of Uganda.

Article 2

Promotion and protection of investments

1.

Each Contracting Party shall encourage and promote investors of the other Contracting Party to make investments in its territory and
admit such investments in accordance with its laws and regulations.

2.

The investments made by investors of one contracting party shall enjoy full and complete protection and safety in the territory of
the other Contracting Party.

3.

Without prejudice to its laws and regulations, neither Contracting Party shall take any discriminatory measures against the management,
maintenance, use, enjoyment and disposal of the investments by the investors of the other Contracting Party.

4.

Subject to its laws and regulations, one Contracting Party shall provide assistance in and facilities for obtaining visas and working
permit to nationals of the other Contracting Party engaging in activities associated with investments made in the territory of that
Contracting Party.

Article 3

Treatment of Investment

1.

Investments of investors of each Contracting Party shall all the time be accorded fair and equitable treatment in the territory of
the other Contracting Party.

2.

Without prejudice to its laws and regulations, each Contracting Party shall accord to investments and activities associated with such
investments by the investors of the other Contracting Party treatment not less favorable than that accorded to the investments and
associated activities by its own investors.

3.

Neither Contracting Party shall subject investments and activities associated with such investments by the investors of the other
Contracting Party to treatment less favorable than that accorded to the investments and associated activities by the investors of
any third Sate.

4.

This treatment shall not include the privileges granted by one Contracting Party to nationals or companies of a third Sate by virtue
of its participation or association in a free trade zone, customs union, common market or any other form of regional economic organization.

5.

The provisions of this Agreement shall not apply to matters of taxation in the territory of either Contracting Party. Such matters
shall be governed by the Double Taxation Treaty between the two Contracting Parties and the domestic laws of each Contracting Party.

Article 4

Expropriation

1.

Neither Contracting Party shall take any measures of expropriation or nationalization or any other measures having the effect of dispossession,
direct or indirect, of investors of the other Contracting Party of their investments in territory, except for the public interest,
without discrimination and against compensation.

2.

Any measures of dispossession which might be taken shall give rise to prompt compensation, the amount of which shall be equivalent
to the real value of the investments immediately before the expropriation is taken or the impending expropriation becomes public
knowledge, whichever is earlier.

3.

The said compensation shall be set not later than the date of dispossession. The compensation shall include interest at a normal commercial
rate from the date of expropriation until the date of payment. The compensation shall also be made without delay, be effectively
realizable and freely transferable.

Article 5

Indemnification

Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war, a
state of national emergency, insurrection, riot or other similar events in the territory of the latter Contracting Party, shall be
accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation and other settlements,
which is no less favorable than that granted to its own nationals or companies or to those of the most favored nation.

Article 6

Subrogation

If one Contracting Party or its designated agency makes a payment to its investors under a guarantee or a contract of insurance against
non-commercial risks it has accorded in respect of an investment made in the territory of the other Contracting Party, the latter
Contracting Party shall recognize:

(a)

the assignment, whether under the law or pursuant to a legal transaction in the former Contracting Party, of any rights or claims
by the investors to the former Contracting Party or to its designated agency, as well as,

(b)

that the former Contracting Party or to its designated agency is enpost_titled by virtue of subrogation to exercise the rights and enforce
the claims of that investor and assume the obligations related to the investment to the same extent as the investor.

Article 7

Transfers

1.

Each Contracting Party shall guarantee to the investors of the other Contracting Party the transfer of their investments and returns
held in its territory, including:

(a)

profits, dividends, interests and other legitimate income;

(b)

proceeds obtained from the total or partial sale or liquidation of investments;

(c)

payments pursuant to a loan agreement in connection with investments;

(d)

royalties in relation to the matters in Paragraph 1 (d) of Article 1 ;

(e)

payments of technical assistance or technical service fee, management fee;

(f)

payments in connection with contracting projects;

(g)

earnings of nationals of the other Contracting Party who work in connection with an investment in its territory.

2.

Nothing in Paragraph 1 of this Article shall affect the free transfer of compensation paid under Article 4 and 5 of this Agreement.

3.

The transfer mentioned above shall be made in a freely convertible currency and at the prevailing market rate of exchange applicable
within the Contracting Party accepting the investments and on the date of transfer.

4.

In case of a serious balance of payments difficulties and external financial difficulties or the threat thereof, each contracting
party may temporarily restrict transfers, provided that this restriction: i) shall be promptly notified to the other party; ii) shall
be consistent with the articles of agreement with the International Monetary Fund; iii) shall be within an agreed period; iv) would
be imposed in an equitable, non discriminatory and in good faith basis.

5.

A Contracting Party may require that, prior to the transfer of payments, formalities arising from the relevant laws and regulations
are fulfilled by the investors, provided that those shall not be used to frustrate the purpose of paragraph 1 of this article.

Article 8

Settlement of disputes between an investor and a Contracting Party

1.

Any legal dispute between an investor of one Contracting Party and the other Contracting Party in connection with an investment in
the territory of the other Contracting Party shall, as far as possible, be settled amicably through negotiations between the parties
to the dispute.

2.

If the dispute cannot be settled through negotiations within six months from the date it has been raised by either party to the dispute,
it shall be submitted by the choice of the investor:

(a)

to the competent court of the Contracting Party that is a party to the dispute;

(b)

to International Center for Settlement of Investment Disputes (ICSID) under the Convention on the Settlement of Disputes between States
and Nationals of Other States, done at Washington on March 18, 1965, provided that the Contracting Party involved in the dispute
may require the investor concerned to go through the domestic administrative review procedures specified by the laws and regulations
of that Contracting Party before the submission to the ICSID.

Once the investor has submitted the dispute to the competent court of the Contracting Party concerned or to the ICSID, the choice
of one of the two procedures shall be final.

3.

The arbitration award shall be based on the law of the Contracting Party to the dispute including its rules on the conflict of laws
the provisions of this Agreement as well as the universally accepted principles of international law.

4.

The arbitration award shall be final and binding upon both parties to the dispute. Both Contracting Parties shall commit themselves
to the enforcement of the award. Each party to the dispute shall bear the costs of its appointed arbitrator and of its representation
in arbitral proceedings. The relevant costs of the Chairman and tribunal shall be borne in equal parts by the parties to the dispute.
The tribunal may in its award direct that a higher proportion of the costs be borne by one of the parties to the dispute.

Article 9

Settlement of disputes between Contracting Parties

1.

Any dispute relating to the interpretation or application of this Agreement shall be settled as far as possible through diplomatic
channels within three months.

2.

In case of failure of a settlement through diplomatic channels within three months, the dispute may be submitted to an ad hoc joint
committee consisting of the representatives of the two Parties or to ad hoc arbitration.

3.

The Contracting Parties may set up such joint committee comprising relevant experts to resolve the dispute. The procedures of the
joint committee shall be decided by both parties to the dispute.

4.

If the joint committee cannot settle the dispute within six months, the party to the dispute is enpost_titled to submit the dispute to
an ad hoc arbitration tribunal. The arbitration tribunal shall be set up as follows for each individual case:

Each Contracting Party shall appoint one arbitrator within a period of two months from the date on which one Contracting Party has
informed the other Party of its intention to submit the dispute to arbitration. Those two arbitrators shall, within further two months,
together select a national of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral
tribunal.

If these time limits have not been complied with, either Contracting Party shall request the President of the International Court
of Justice to make the necessary appointment(s).

If the President of the International Court of Justice is a national of either Contracting Party or of a State with which one of the
Contracting Parties has no diplomatic relations or if, for any other reason, he cannot exercise this function, the Vice-President
of the International Court of Justice shall be requested to make the appointment(s).

5.

The court thus constituted shall determine its own rules of procedure. Its decisions shall be taken by a majority of the votes; they
shall be final and binding on the Contracting Parties.

6.

Each Contracting Party shall bear the costs resulting from the appointment of its arbitrator. The expenses in connection with the
appointment of the third arbitrator and the administrative costs of the court shall be borne equally by the Contracting Parties.

Article 10

Other obligations

If the legislation of either Contracting Party or international obligations existing at present or established hereafter between the
Contracting Parties result in a position entitling investments by investors of the other Contracting Party to a treatment more favorable
than is provided for by the Agreement, such position shall not be affected by this Agreement.

Article 11

Special Agreements

1.

Investments made pursuant to a specific agreement concluded between one Contracting Party and investors of the other Party shall be
covered by the provisions of this Agreement and by those of the specific agreement.

2.

Each Contracting Party undertakes to ensure at all times that the commitments it has entered into vis-￿￿-vis investors of the other
Contracting Party shall be observed.

Article 12

Application

This Agreement shall apply to investment, which are made prior to or after its entry into force by investors of one either Contracting
Party in the territory of the other Contracting Party in accordance with the laws and regulations of the other Contracting Party
concerned in the territory of the latter, but shall not apply to the dispute that arose before the entry into force of this Agreement.

Article 13

Governing law

All investments shall, subject to this Agreement, be governed by law in force in the territory of the Contracting Party in which such
investments are made.

Article 14

Consultations

1.

The representatives of the Contracting Parties shall hold meetings from time to time for the purpose of:

(a)

reviewing the implementation of this Agreement;

(b)

exchanging legal information and investment opportunities;

(c)

resolving disputes arising out of investments;

(d)

forwarding proposals on promotion of investment;

(e)

studying other issues in connection with investment.

2.

Where either Contracting Party requests consultation on any matter of Paragraph 1 of this Article, the other Contracting Party shall
give prompt response and the consultation be held alternatively in Beijing and Kampala.

Article 15

Amendments

The terms of this Agreement may be amended by mutual agreement of both Contracting Parties and such amendments shall be effected by
exchange of notes between them through diplomatic channels.

Article 16

Entry into force and duration

1.

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures necessary therefore have been fulfilled and remain
in force for a period of ten years.

2.

This Agreement shall continue to be in force unless if either Contracting Party has fails to given a written notice to the other Contracting
Party to terminate this Agreement one year before the expiration of the initial ten year period specified in Paragraph 1 of this
Article or at any time thereafter.

3.

With respect to investments made prior to the date of termination of this Agreement, the provisions of Article 1 to 15 shall continue
to be effective for a further period of ten years from such date of termination.

In Witness Whereof the undersigned, duly authorized thereto by respective Governments, have signed this Agreement.

Done in duplicate in Beijing on May 27, 2004, in the Chinese and English languages, both texts being equally authentic.

For the Government of the￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿For the Government of the

People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿Republic of Uganda



 
The Government of the People’s Republic of China
2004-05-27

 







ANNOUNCEMENT OF MINISTRY OF COMMERCE, GENERAL ADMINISTRATION OF CUSTOMS AND STATE ENVIRONMENTAL PROTECTION ADMINISTRATION






the Ministry of Commerce, the General Administration of Customs, the State Environmental Protection Administration

Announcement of Ministry of Commerce, General Administration of Customs and State Environmental Protection Administration

[2004] No. 55

In accordance with the Foreign Trade Law of the People’s Republic of China, the Custom Law of the People’s Republic of China, the
Law of Air Pollution Prevention and Control of the People’s Republic of China as well as other requirements related to the state
industrial policy, the prohibited commodities catalogue of processing trade are now adjusted and promulgated (see Appendix1). At
the same time some of the documents related to prohibited commodities of processing trade promulgated before shall be abolished (see
Appendix2).

This Announcement shall enter into force as of November 1, 2004. For those processing trade business which has been examined and approved
by commercial department (foreign trade and economy cooperation department), been put on record with the Customs and is related to
this catalogue’s adjustment and updating, it is permitted to complete the execution during the period of validity. However, the processing
trade handbook shall not be prolonged over the expiring date. Those commodities shall not be sold within the territory.

Henceforth the catalogue and the tax number of the prohibited commodities of processing trade shall be adjusted and updated annually
in line with the development of the national economy as well as the requirement of the industrial policy. If any department concerned
encounters any problem or has any suggestion during the execution, please put forward in time.

It is hereby notified.

Appendix: as is presented

Ministry of Commerce

General Administration of Customs

State Environmental Protection Administration

October 27, 2004 Appendix 1:Prohibited Commodities of Processing Trade

I.

Commodity prohibited from import of export by the state

1.

Announcement No.19, 2001 by the Ministry of Foreign Trade and Economic Cooperation of People’s Republic of China (the first batch
of commodities prohibited from import and the first batch of commodities prohibited from export prohibited from export);

2.

Announcement No.37, 2001 by the Ministry of Foreign Trade and Economic Cooperation , The Customs General Administration and the State
Administration for Quality Supervision , Inspection and Quarantine of People’s Republic of China (the second batch of commodities
prohibited from import );

3.

Announcement No.36, 2001 by the Ministry of Foreign Trade and Economic Cooperation , the General Administration of Customs, and the
State Administration for Environment Protection of People’s Republic of China(the third batch of commodities prohibited from import);

4.

Announcement No.25, 2002 by the Ministry of Foreign Trade and Economic Cooperation , the General Administration of Customs, and the
State Administration for Environment Protection of People’s Republic of China (the forth and fifth batch of commodities prohibited
from import, excluding sugar cane, molasses (17031000) and other molasses (17039000) having been adjusted to be restricted from import
in the forth batch);

5.

Announcement No. 40, 2004 by the Ministry of Commerce, the General Administration of Customs, and the Ministry of Forestry of People’s
Republic of China (the second batch of commodities prohibited from export);

6.

import materials which fall within commodities prohibited from import into China (including old clothes, disused publications with
obscene contents and industrial waste with injurant or radioactive substances etc. ).

II.

Commodity of processing trade prohibited from import or export

1.

seeds, seedling, breeder, chemical fertilizer, feedstuff, additive and antibiotic etc. imported for planting or raising export products

2.

frozen tip of chicken wing, chicken claws, chicken liver and other chicken sweetbread (import commodity code: 02071429)

3.

waste machinery and electronic products and scrap materials(see the list below) htm/e03716.htmSerial No

￿￿

Serial No.

Import Commodity Codes

Commodity Description

Note

1

26190000

Slag, scruff, oxygenized tegument and other boiled waste material

in making iron and steel (excluding granulated slag )

2

72044900.10

iron and steel casting die of abandoned cars

￿￿

72044900.20

waste hardware and electric appliance based on recycling iron and steel

￿￿

3

74012000

cement copper

￿￿

4

74040000.10

waste electric machines based on reclaiming copper etc.

including waste electrical machines, electrical wire, cable and hardware and electric appliance

5

76020000.10

waste electrical wire based on reclaiming aluminum

including waste electrical wire, cable and hardware and electric appliance

6

89080000

watercraft for dismounting and other floating construction

￿￿

7

26209990.10

calx and residue with over 10% of vanadium pentoxide

￿￿

￿￿￿￿4. Used electromechanical products (see the following table) (excluding the expansion of the maintenance and reopening in export processing
zone and tax-protected zone)






Serial No.

Import Commodity Codes

Commodity Description

Notes

1

84151010-84150909

air condition

￿￿

2

841780202

radioactive waste incinerator

￿￿

3

84181010-84189999

electric or non-electric refrigerator and other refrigeration equipments

￿￿

4

84711000-84715090

computer-like devices

￿￿

5

84716011

display

￿￿

84716012

 

 

84716019

 

 

6

84716031-84716039

MEASURES FOR THE ADMINISTRATION OF PRINTED ADVERTISEMENT

the State Administration for Industry and Commerce

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

No. 17

The Measures for the Administration of Printed Advertisement, which were adopted at the executive meeting of the State Administration
for Industry and Commerce of the People’s Republic of China, are promulgated hereby and shall go into effect as of January 1, 2005.

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

November 30, 2004

Measures for the Administration of Printed Advertisement

Article 1

With a view to enforcing the administration of printed advertisements, protecting the legal rights and interests of the consumers
and business operators, and maintaining a market order of fair competition, the present Measures are formulated in accordance with
the Advertising Law of the People’s Republic of China, the Regulations on Advertising Administration and other relevant provisions
of the State.

Article 2

The printed advertisements, subject to the administration of the present Measures, refer to printed advertisements in the common forms
of leaflets, posters, and brochures by which an advertiser publicizes by himself or commissions an advertising operator to publicize
for the introduction of the commodities and services that he promotes, or printed advertisements in a fixed form such as specialized
publications with fixed names, specifications, and patterns by which an advertising operator publicizes for the introduction of the
commodities and service that any other person promotes.

Article 3

A printed advertisement shall be true, lawful and conforming with the requirements for the development of socialist spiritual civilization,
and shall not contain any false information or deceive or mislead consumers.

Article 4

A printed advertisement shall be identifiable as a kind of printed advertisement by consumers, and shall not contain such non-advertisement
information as news reports.

Article 5

The publication of a printed advertisement shall not disturb the public order, social production or the people’s life. No printed
advertisement may be published in any site or area wherein the said advertisement is prohibited by any law or regulation or the local
people’s governments at or above the county level.

Article 6

Where an advertiser himself publishes a common form printed advertisement, the advertiser’s name and address shall be indicated; where
an advertiser commissions an advertising operator to design, produce or publish a common form printed advertisement, the name and
address of the advertising operator shall be indicated as well.

Article 7

Where an advertiser or an advertising operator use printed matter to publish the advertisements of such commodities as medicines,
medical apparatuses, pesticides, veterinary drugs and other advertisements which are subject to censorship as prescribed by laws
and administrative regulations, it shall obtain corresponding examination and approval documents of advertising in accordance with
the relevant laws and administrative regulations, and shall publish advertisements according to the advertising censorship documents.

Article 8

An advertising operator, who applies for issuing printed advertisement in a fixed form, shall meet the following conditions:

(1)

Taking advertising as its main business, its business scope including acting as an agent or an advertisement publisher, and its enterprise
name indicating that the industry which the enterprise belongs to is “advertising”;

(2)

Having a registered capital of no less than 1,500,000 Yuan;

(3)

The enterprise having been established for three years or more.

Article 9

When publishing a fixed form printed advertisement, an advertising operator shall apply to the administration for industry and commerce
of the province, autonomous region, municipality directly under the Central Government or city directly under State planning where
it is located, and shall submit the following application materials:

(1)

An application report (with such content of the fixed form printed advertisement which is applied for as the name and specifications;
the issue number, time, quantity and range of issuance; the type of the commodities and services to be introduced; the object, manner,
channel of issuing; etc.);

(2)

A photocopy of the business license;

(3)

An application form for the registration of the fixed form printed advertisement;

(4)

The sample of the first page of the printed advertisement in a fixed form.

Article 10

When the application materials are incomplete or fail to be in conformity with the legal form, the administration for industry and
commerce of the provinces, autonomous regions, municipalities directly under the Central Government and cities directly under State
planning shall, once for all within five days, inform the advertising operator of all the content need to be supplemented and corrected.
When the application materials are complete and in conformity with the legal form, the said administration shall, give a notice of
acceptance and make a decision within 20 days from the date of acceptance. If approval is granted, a Fixed Form Printed Advertisement
Registration Permit shall be issued. If it is not approved, an explanation shall be given in writing.

Article 11

The term of validity of the Fixed Form Printed Advertisement Registration Permit is 2 years. An advertising operator may apply to
the original registration organ for renewing the permit 30 days prior to the expiry date.

Article 12

An advertising operator shall indicate, on the top of the first page of a fixed form printed advertisement, the name of the fixed
form printed advertisement, the name and address of the advertising operator, the registration permit number, the issue number and
publishing time of the advertisement, and the unified mark of “DM”.

The name of a fixed form printed advertisement shall be composed of the following three parts arranged in proper order: the administrative
division in the enterprise name of the advertising operator + the name of the enterprise + the word “advertisement”. The written
name of the fixed form printed advertisement shall be noticeable, and all the integral parts shall be in identical size and font,
and the name shall take up an area of no less than 10% of the first page.

Article 13

The first page and last page of a fixed form printed advertisement shall be the advertisement page. An advertising operator shall
not print the post_title or table of contents of the advertisements therein on the first page. Such dictions as “host”, “assist”, “producer”,
“editorial board”, “editor”, “publish”, “this publication”, “magazine”, “special”, etc., which are easily confused with those as
used in newspapers or journals, shall not be used in a fixed form printed advertisement.

Article 14

The catalogue of advertisements or index in a fixed form printed advertisement shall consist of the names of the commodities (trademarks)
or the names of the advertisers. The corresponding advertisement content shall be able to clearly and specifically indicate the advertisers
and the commodities or services thereof under sales promotion. An advertising operator shall not publish an advertisement in the
form of news report.

Article 15

An advertising operator, when publishing a Chinese-foreign language printed advertisement in a fixed form to cater to any special
group, shall not violate any State regulation concerning language.

Article 16

An advertising operator shall publish a fixed form printed advertisement according to the name, specifications and patterns as approved,
and shall accept the supervision and examination of the administrations for industry and commerce. An advertising operator shall
submit a sample of the fixed form printed advertisement and other related materials as required, and may not conceal the real situation
or provide false materials.

An advertising operator shall not alter, scalp, lease or lend the Fixed Form Printed Advertisement Registration Permit, and shall
not have its fixed form printed advertisement published or operated by any other person by means of transfer.

Article 17

Where a printed advertisement is published in an emporium, drug store, medical service institution, recreation places or other public
places, the advertiser or the advertising operator shall obtain the consent of the manager of the said places. The manager of the
said places shall take charge of the printed advertisements that are distributed, displayed or posted within its jurisdiction, and
shall reject the issuance of any advertisement violating any of the advertising laws and regulations.

Article 18

Any printing enterprise of printed advertisements shall abide by the relevant regulations, and shall not print any printed advertisement
with illegal content.

Article 19

Anyone who violates the present Measures shall be punished in accordance with such relevant laws or administrative regulations as
the Advertising Law of the People’s Republic of China, the Regulation on Advertising Administration, etc., and the provisions of
the Detailed Implementing Rules for the Regulation on Advertising Administration. In case any related matter are not prescribed in
such relevant laws or administrative regulations as the Advertising Law of the People’s Republic of China, the Regulations on Advertising
Administration, etc., or in the Detailed Implementing Rules for the Regulation on Advertising Administration, the offender shall
be ordered to cease its unlawful practice by the administration for industry and commerce, and may be imposed a fine of less than
three times the illegal earnings but no more than a maximum of 30,000 Yuan, or a fine of no more than 10,000 Yuan in light of the
circumstances if there are no illegal earnings.

Any individual who unlawfully distributes or posts a printed advertisement shall be ordered to cease the wrongful acts by the administration
for industry and commerce, and shall be imposed a fine of no more than 50 Yuan.

Article 20

Where the situation of the advertising operator that engages in fixed form printed advertisement changes so that it no longer meets
the conditions as prescribed in Article 8 of the present Measures, the Fixed Form Printed Advertisement Registration Permit thereof
shall be revoked by the original registration organ.

Where a fixed form printed advertisement violates the provisions of Article 3 in the present Measures and if the case is serious,
the original registration organ may, in accordance with the provisions of Articles 37, 39 and 41 of the Advertising Law, cease the
violator’s business operations in fixed form printed advertisement and revoke its Fixed Form Printed Advertisement Registration Permit.

Article 21

Where any bill, packing, decoration or product instruction contains any advertising content, it shall be subject to the administration
of the present Measures.

Article 22

The present Measures shall go into effect as of January 1, 2005. The Measures for the Administration of Printed Advertising, which
were promulgated by the Order No. 95 of the State Administration for Industry and Commerce on January 13, 2000, shall be abolished
simultaneously.

 
the State Administration for Industry and Commerce
2004-11-30

 




GUIDELINES ON INTERNAL AUDIT FOR BANKING FINANCIAL INSTITUTIONS

Guidelines on Internal Audit for Banking Financial Institutions

Yin Jian Fa [2006] No. 51
June 27, 2006

Chapter I General Provisions

Article 1

In order to advance banking financial institutions to improve corporate governance, strengthen internal control and perfect the internal
audit system, these Guidelines are formulated according to the Banking Supervision Law of the People’s Republic of China, the Law
of the People’s Republic of China on Commercial Banks, the Company Law of the People’s Republic of China, the Audit Law of the People’s
Republic of China, the Regulations for the Implementation of the Audit Law of the People’s Republic of China and other relevant laws
and regulations.

Article 2

The term “banking financial institutions” as mentioned in these Guidelines shall refer to the policy banks and commercial banks that
are established within the territory of the People’s Republic of China.

As for other financial institutions established upon approval of the China Banking Regulatory Commission (hereinafter referred to
as the CBRC), these Guidelines may be implemented by reference.

Article 3

The term “internal audit” as mentioned in these Guidelines refer to a kind of independent and objective supervision, appraisal or
consulting activity, and is an important part of the internal control of banking financial institutions, under which systematic and
regularized methods are adopted to examine, appraise and improve the business activities, risk conditions, internal control and corporate
governance effects of banking financial institutions, so as to promote the healthy development of banking financial institutions.

Article 4

The internal audit of banking financial institutions aims to guarantee the implementation of related economic and financial laws
and regulations, guidelines and policies as well as the rules of supervisory departments of the state, control the risks at an acceptable
level within the risk framework of banking financial institutions, improve the operation of banking financial institutions and increase
the value.

Article 5

The internal audit work of banking financial institutions shall be independent of the business operation and management, be guided
by risks and be guaranteed to be objective and impartial.

Article 6

The CBRC shall examine and appraise the internal audit work of banking financial institutions according to these Guidelines.

Chapter II Framework and Staff

Article 7

The board of directors of a banking financial institution shall be responsible for establishing and maintaining a sound and effective
internal audit system. Where there is no independent board of directors, the senior managers shall be responsible for fulfilling
the relevant duties.

An audit committee shall be set up under the board of directors, which shall contain at least 3 members and a majority of the members
shall be non-executive directors. The chairman of the audit committee shall be an independent director. Where there is no independent
board of directors, the organizational structure of the audit committee and the person-in-charge thereof shall be subject to the
determination of the senior managers.

Article 8

The banking financial institution shall set up an internal audit department to audit the business operation and management acts of
all institutions of the same banking group, and may staff a chief auditor to be responsible for the audit work of all institutions
of the same banking group.

The chief auditor shall be appointed by the board of directors, which shall be included into the scope of ratification of the position-holding
qualification of senior managers of banking financial institutions. And alteration of the position of the chief auditor shall be
reported to the CBRC in advance.

Article 9

Banking financial institutions shall establish an independent and vertical internal audit management system. The audit budget, the
remunerations of employees, the appointment and dismissal of major persons-in-charge shall be decided on by the board of directors
or its special committee. The remuneration of internal auditors may not be lower than the average level of employees of the same
grade in other departments of the institution.

Article 10

The internal auditors of banking financial institutions shall generally be staffed at 1% of the total number of employees, and an
internal position-shift system shall be set up.

Article 11

Internal auditors shall be of corresponding professional practicing qualifications:

(1)

Professional level. Internal auditors shall have a diploma of junior college or above, grasp professional knowledge related to internal
audit of banking financial institutions, and be familiar with related financial laws and regulations and internal control rules.

(2)

Practicing experience. Internal auditors shall have experienced in practicing finance for at least two years; the person-in-charge
of an audit project shall have at least experienced in audit for at least three years, or at least six years in practicing finance.

(3)

Morality criteria. Internal auditors shall have upright, objective, clean-fingered and impartial occupational ethics, and have no
bad records since he engaged in financial work.

Chapter III Duties

Article 12

Banking financial institutions shall make rules to clarify the duties of the board of directors, the audit committee, the chief auditor,
the internal audit department and the staff thereof.

Article 13

The board of directors shall bear the final liabilities for the suitability and validity of internal audit, be responsible for approving
articles of association of internal audit, medium and long-term audit plan and annual work plan, etc., provide necessary to guarantee
the internal audit work be carried out independently and objectively, and examine and supervise the audit work.

Article 14

The audit committee shall be responsible to the board of directors, and, upon authorization of the board of directors, organize and
guide the internal audit work. The audit committee shall convene meetings regularly, and may, if necessary, invite senior managers
to attend the meeting.

Article 15

The chief auditor shall be responsible for organizing the implementation of internal audit articles of association, medium and long-term
audit plan and annual work plan, do well in the coordination work, timely report the audit work to the board of directors and the
major persons-in-charge of the senior management staff, and take charge of the overall quality of internal audit.

Article 16

The internal audit department shall be responsible to the board of directors and the audit committee, formulate internal audit procedures,
appraise the risk conditions and management status, implement the annual audit work plan, carry out follow-up audit, supervise the
rectification, be responsible for the quality of the audit project, and well manage archival.

Article 17

The internal audit items shall mainly include:

(1)

the regularity of business management and the work condition of the related department;

(2)

soundness and validity of the internal control;

(3)

risk conditions, and the applicability and validity of the procedures for risk identification, computation and control;

(4)

information on programming and design, development and operation, management and maintenance of the information system;

(5)

accuracy and reliability of the accounting records and the financial reports;

(6)

information on the asset valuation system related to risks; and

(7)

operational performance of the institution and fulfillment of duties by managers.

Chapter IV Scope of Powers

Article 18

Banking financial institutions shall make rules to clarify powers necessary for the internal audit department to fulfill its duties.

Article 19

The internal audit department can be present at or take part in meetings related to the duties of the internal audit department.

Article 20

The internal audit department shall be enpost_titled to timely and fully know about the management information, investigate and inquire
of the entity subject to audit and the related persons involved in the relevant issues, as well as collect evidence from them.

Article 21

The internal audit department may, when deeming it necessary, report audit findings directly to the board of directors.

Article 22

The internal audit department shall have the power to propose suggestion on punishment and power to impose penalties.

Article 23

In case anyone refuses to accept or cooperate in internal audit, refuses to provide true information or provides false information,
retaliates or frames up the auditors, the internal audit department shall have the power to report this to the superior department,
and request the superior department to timely stop the act and make relevant punishment.

Chapter V Quality Control

Article 24

The internal audit department may provide consultation services regarding risk management, internal control and other related matters,
but may not directly participate in or take charge of making decisions on internal control design or management, or implementing
such decisions.

Article 25

The internal audit department shall, based on the annual risk evaluation, determine audit focuses. The audit frequency and extent
shall accord with the business nature, complexity, risk conditions and management level of banking financial institutions.

Every business office shall be subject to risk evaluation at least once every year, and be audited at least once every two years.

Article 26

The internal audit department and the auditors thereof shall, strictly according to the audit procedures and audit methods, implement
the audit project, and make self-evaluation at regular intervals.

Article 27

The internal audit department shall set up an audit withdrawal system for internal auditors, and guarantee the objectivity of internal
audit.

Article 28

The internal audit department shall set up a follow-up training system for internal auditors, encourage them to obtain the practicing
qualifications of certified public accountant, certified internal auditor, certified information system auditor and etc., so as to
guarantee the professional competency of the internal auditors.

Article 29

The internal audit department shall enhance the application of technological means and information technology in audit work, establish
and improve the non-on-spot internal audit monitoring system as well as the internal audit operation system and the information management
system.

Article 30

The internal audit department may, in light of the need of work, outsource partial internal audit project upon approval of the board
of directors, but shall in advance evaluate the independence, objectivity and professional competency of the undertaking institution.

Article 31

The internal audit department shall set up an audit reconsideration system. The audit conclusion to which the entity under audit
objects shall be subject to reconsideration of the superior institution of the audit institution that has made the audit conclusion.

Article 32

The board of directors may hire an institution outside to appraise the due diligence of the internal audit department, and guarantee
that the external inspectors are independent of the entity subject to appraisal, have the professional competency and are in no interest
and conflict with the entity subject to appraisal.

Chapter VI Report System

Article 33

The banking financial institution shall set up an internal audit report system and a report avenue, which are suitable for the vertical
management system.

Article 34

The audit committee shall report its audit work to the board of directors on a quarterly basis, and notify the senior management
staff and the board of supervisors of it.

Article 35

The chief auditor and the internal audit department shall report the audit work to the board of directors and the main principal
of the senior management staff on a quarterly basis, and shall, at least once every year, submit to the board of directors the audit
work reports containing contents such as fulfillment of the duties, audit findings and suggestion and etc.

Article 36

The chief auditor and the internal audit department shall, after finishing a matter subject to audit, timely submit to the board
of directors and the main principals of the senior management staff the project audit report containing contents such as the survey
of audit, audit basis, audit conclusion, audit decision, audit suggestion, feedback opinions of the entity subject to audit and etc.

Article 37

The banking financial institution shall set up and improve the system for communicating with and making reports to the CBRC.

The board of directors and the senior management staff shall timely report to the CBRC the major audit findings.

The internal audit department shall report the following items to the CBRC or the dispatched office thereof:

(1)

The all-round audit work report submitted to the board of directors;

(2)

Where the internal audit department conducts audit at a different place, it shall meanwhile make a copy of the audit report to the
dispatched office by the CBRC at the locality of the entity subject to audit;

(3)

After finding any major problem and reporting it to the board of directors, the internal audit department shall directly report the
related information to the CBRC, under the circumstance that the problem has not been carefully investigated, no punishment has been
imposed and no rectification has been made.

(4)

The audit report of the external intermediary institution on the banking financial institution. And

(5)

Other matters as required by the CBRC or its dispatched office to be reported.

Chapter VII Assessment and Accountability

Article 38

The board of directors and the senior management staff shall take effective measures to guarantee the sufficient utilization of the
internal audit achievements.

As for issues not rectified in light of the rectification requirements, the senior management staff shall supervise and urge to make
rectification, investigate the liabilities of related persons, and bear the liabilities and risks for not taking timely rectifying
measures against the audit findings.

Article 39

The board of directors shall set up an incentive and restrictive mechanism, assess and appraise the due diligence and fulfillment
of duties of all related parties to the internal audit, set up an accountability system for internal audit, and clarify the standards
and procedures for investigating the internal audit liabilities and the exemption thereof.

Article 40

The board of directors shall investigate the liabilities of the person in charge of the internal audit department or any other person
directly liable under any of the following circumstances:

(1)

failing to implement the audit plan, procedures or methods and thus caused major problems unable to be found;

(2)

concealing any problem found from the audit or failing to truthfully report it;

(3)

the audit conclusion violating the facts seriously;

(4)

doing a poor job in following up the investigation and rectification of the problems found from the audit;

(5)

failing to implement the confidentiality system in light of the requirements; or

(6)

committing other acts injuring the interests or fame of banking financial institutions.

Article 41

Where, upon inspection, supervision and affirmation of liabilities, a banking financial institution has sufficient evidence to prove
that the internal audit department and the auditors have performed the duties in due diligence according to related laws, regulations,
rules, these Guidelines and its internal audit rules, and have timely reported the problems found from the examination, it may, when
the related problems of the entity subject to audit are exposed, exempt or partially exempt the liabilities of the internal audit
department and the related auditors by considering the conditions.

Chapter VIII Supplementary Provisions

Article 42

Banking financial institutions shall, according to these Guidelines, formulate their respective detailed implementation rules, and
make reports to the CBRC for archival filing.

Article 43

The power to interpret these Guidelines shall remain with the CBRC.

Article 44

These Guidelines shall enter into effect as of July 1, 2006.

 
The China Banking Regulatory Commission
2006-06-27

 




CIRCULAR OF THE GENERAL OFFICE OF THE STATE ENVIRONMENTAL PROTECTION ADMINISTRATION ON STRENGTHENING THE EXAMINATION AND APPROVAL OF WASTE RESTRICTED FROM IMPORT

Circular of the General Office of the State Environmental Protection Administration on Strengthening the Examination and Approval
of Waste Restricted from Import

Huan Ban [2006] No.89

The competent bureaus (departments) of environmental protection in all provinces, autonomous regions, municipalities directly under
the Central Government:

For the purpose of strengthening the administration of solid waste used as raw materials which are restricted from import (hereinafter
referred to as “imported waste”), regulating its examination and approval, putting an end to the illegal activities of reselling
import licence of solid waste at high profits and preventing environmental pollution caused by the processing and utilization of
solid waste, it is hereby notified:

I.

To further strengthen the examination and approval of waste import ports

The competent departments of environmental protection at all levels shall strengthen the administration of waste import ports in accordance
with the Circular on Relevant Issues Concerning the Strengthening of Examination and Approval of Waste Restricted from Import (Huan
Ban [2004] No.100). They shall be examined and approved by the competent departments nearby. When examining the applications of importing
waste through coastal ports of other provinces, autonomous regions and municipalities, the competent departments in the following
21 provinces, autonomous regions and municipalities, i.e. Heilongjiang, Jilin, Inner Mongolia, Shanxi, Shaanxi, Ningxia, Gansu, Qinghai,
Xinjiang, Tibet, Sichuan, Chongqing, Yunnan, Guizhou, Hubei, Hunan, Jiangxi, Anhui, Hebei, Henan and Beijing, shall strengthen the
examination and verification of the capacity of the entities which process and utilize imported waste, their utilization record and
the feasibility of cost accounting of importing waste through remote ports; the applications shall be submitted to the State Environmental
Protection Administration only when they passed the local examinations.

II.

To further strengthen the supervision and administration of the entities which import and process waste plastics and waste hardware
and electric appliance

1.

To make a record of the entities which utilize imported waste. As of September 1, 2006, entities which import waste plastics and waste
hardware and electric appliance shall register at local competent departments of environmental protection and fill in the Record
Form of Entities Importing Solid Waste as Raw Materials(For Trial Implementation) (See Appendix 1)

2.

To make a record of the current utilization of imported waste. As of the beginning day of importing solid waste, the registered entities
shall keep a daily operation notebook and record exactly the importations, transportations, utilization and disposal of imported
waste (including the disposal of residues which cannot be utilized). They shall fill in the Record Form of Solid Waste Utilization
as Raw Materials (For Trial Implementation) (See Appendix 2) every quarter for key issues noted on their daily operation notebook
and submit it to the competent departments for record. They shall also preserve relevant documents for inquiry for at least 3 years.

3.

To strengthen supervision and inspection. The competent departments of environmental protection at all levels shall strengthen the
supervision and administration of the entities which import and process waste plastics and waste hardware and electric appliance,
and conduct regular inspections on their utilizing capacity, current situation and pollution prevention measures. The municipal departments
of environmental protection shall submit to the provincial ones the record of these entities, of their current situation of utilization
and the results of supervision and inspection on them, the summary of which shall then be submitted to the State Environmental Protection
Administration.

III.

To continue to combat forgery, falsification and reselling of import licence of solid waste at high profits

To ensure that imported waste is processed and utilized in entities which have legally obtained the import licence of solid waste,
the competent departments of environmental protection at all levels, especially those of coastal cities, shall strengthen the combat
against local illegal activities of forgery, falsification and reselling of import licence of solid waste at high profits in conjunction
with local competent departments of public security, customs and quality control. Those who are confirmed to have committed illegal
activities shall take responsibilities in accordance with the law and be made known to all by announcement.

Appendix:

1.

Record Form of Entities Importing Solid Waste as Raw Materials (For Trial Implementation)

2.

Record Form of Solid Waste Utilization as Raw Materials (For Trial Implementation)

General Office of the State Environmental Protection Administration

August 1, 2006



 
General Office of the State Environmental Protection Administration
2006-08-01

 







CIRCULAR OF SHANGHAI BRANCH OF THE PEOPLE’S BANK OF CHINA ON TRANSMITTING THE CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON RAISING THE RATE OF RENMINBI DEPOSIT RESERVE

Circular of Shanghai Branch of the People’s Bank of China on Transmitting the “Circular of the People’s Bank of China on Raising the
Rate of Renminbi Deposit Reserve”

Shanghai Yin Fa [2006] No. 238

Bank of Shanghai, Shanghai Rural Commercial Bank, all finance corporations in Shanghai, all foreign-funded banks engaging in Renminbi
business in Shanghai,

We hereby transmit the “Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve” ([2006] No. 383) to
you, and relevant matters are expressed as follows. Please abide by and implement it strictly.

I.

As of November 15, 2006, the Bank of Shanghai, all finance corporations in Shanghai and all foreign-funded banks engaging in Renminbi
business in Shanghai shall execute the rate of Renminbi deposit reserve of 9%.

II.

Shanghai Rural Commercial Bank shall still execute the rate of Renminbi deposit reserve of 6% temporarily.

III.

All financial institutions shall, in light of the requirement of the present Circular, reasonably adjust your structure of assets
and liabilities, intensify liquidity management, and timely do a good job in depositing Renminbi deposit reserves as well as in submitting
relevant statements and materials.

Attachment: Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve (Yin Fa [2006] No. 383)

Shanghai Branch of the People’s Bank of China

November 3, 2006
Attachment:
Circular of the People’s Bank of China on Raising the Rate of Renminbi Deposit Reserve

Yin Fa [2006] No. 383

Shanghai Head Office, all branches, business management departments, central sub-branches in provincial capital cities and Shenzhen
central sub-branch of the People’s Bank of China, all policy banks, state-owned commercial banks and joint stock commercial banks,

With a view to intensifying the liquidity management of banking sector, reasonably control the aggregate amount of monetary credit,
the People’s Bank of China has decided upon the approval of the State Council to raise the rate of Renminbi deposit reserve as of
November 15, 2006. Hereby relevant matters are noticed as follows,

I.

The rate of deposit reserve of 8.5%, which is executed at present by the Agricultural Development Bank of China, state-owned commercial
banks, joint stock commercial banks, urban commercial banks, rural commercial banks, finance corporations, financial leasing companies
as well as relevant foreign-funded financial institutions, shall be changed into 9%.

II.

The rate of deposit reserve of 7.5%, which is executed at present by rural cooperative banks, shall be changed into 8%.

III.

The rate of deposit reserve of 7%, which is executed at present by urban credit cooperatives, shall be changed into 7.5%.

IV.

The rate of deposit reserve of 6%, which is executed at present by rural credit cooperatives, shall be changed into 6.5%.

V.

The rate of deposit reserve of 9%, which is executed at present by financial institutions as required by the differential rate of
deposit reserve system, shall be altered to 9.5%.

All relevant financial institutions shall, in light of the requirements of the present Circular, timely make relevant preparations,
reasonably adjust your structure of assets and liabilities and fulfill the liquidity arrangements. Shanghai Head Office, all branches
and sub-branches of the People’s Bank of China shall faithfully intensify the supervision on the liquidity conditions of the various
legal person depository financial institutions within your respective jurisdictions, and strengthen the management of deposit reserves
strictly according to relevant provisions, so as to guarantee the smooth going of this work. In the case of any major emergency,
a report shall be made to the Headquarters of the People’s Bank of China in time.

Shanghai Head Office, all branches and sub-branches of the People’s Bank of China are requested to forward the present Circular to
the urban commercial banks, rural commercial banks, rural cooperative banks, urban credit cooperatives, rural credit cooperatives,
finance corporations, financial leasehold companies and relevant foreign-funded financial institutions within your respective jurisdictions.

The People’s Bank of China

November 3, 2006



 
Shanghai Branch of the People’s Bank of China
2006-11-03

 







CONSTITUTION ACT, 1982 – page 22

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