All the branches and the business and managerial departments of the People’s Bank of China， all the wholly state-owned commercial banks and the joint stock commercial banks：

In order to support the implementation of the Interim Measures Governing the Investment of Securities within China by Qualified Foreign Institutional Investors （Decree [2002] No.12 of the China Securities Regulatory Committee and the People’s Bank of China， hereinafter referred to as the Measures）， relevant issues concerning commercial banks’ application for engaging in the entrusted business of investments of securities within China by qualified foreign institutional investors （“QFII”） are notified as follows：

1. Chinese-funded commercial banks shall submit the application materials as provided in Article 16 of the Interim Provisions Governing the Intermediate Business of Commercial Banks （Decree [2000] No. 5 of the People’s Bank of China）。

2. The branches of Wholly foreign-funded banks， equity joint banks and foreign banks shall submit the application materials as provided in Article 44 of the Rules for the Implementation of the Regulations of the People’s Republic of China on the Management of Foreign-funded Financial Institutions （Decree [2002] No. 1 of the People’s Bank of China）：

a. An application form for engaging in the entrusted business of investments of bonds and securities inside China by qualified foreign institutional investors as signed by the person authorized by the head office of the applicant. Where the application is signed by the chairman of the board of directors or the president （chief executive office， general manager）， no power of attorney is required； where an application is signed by any other person， a power of attorney is required. The power of attorney shall be subject to the notarization of an institution acknowledged by the country or region where it is located or subject to the authentication of the Chinese embassy or consulate to that country. “The country or region where it is located” refers to the country or region where the authorizer is holding a position. If the authorizer is within the borders of China， the notarization shall be issued by a notarial institution located at the city where the authorizer is holding a position. If the authorized person is holding a position within the borders of China on the temporary basis， where his （her） present position has been examined and approved by the People’s Bank of China and where the scope of the authorization is in conformity with that approved by the People’s Bank of China， he （she） can merely offer a copy of the authorization that had been submitted to the People’s Bank of China when he （she） started to hold the position， but the said copy shall be signed by himself （herself）。

b. Detailed description of the proposed business， necessary preparations for engagement in the business， including operational procedures， risk-benefit analysis， control measures， professionals and installations of computer systems etc.

c. Other materials required by the People’s Bank of China.

3. For the branches of the foreign banks in China， only one of the branches may apply for engaging in the entrusted business of securities investment as a QFII inside China， and for the solely foreign-funded banks and the equity joint banks， only the head offices thereof may apply for engaging in the entrusted business of securities investment as a QFII.

4. The wholly state-owned commercial banks and joint stock commercial banks shall file an application to the People’s Bank of China via their head office. City commercial banks shall file an application to the branch or the business managerial department via their respective head offices. Wholly foreign-funded banks， equity joint banks and branches of foreign banks shall submit the application materials （in triplicate） to any branch of the People’s Bank of China where the applicant is located. After the materials of application have been examined and accepted by the branch of the People’s Bank of China， they shall be submitted via the branch’ s superior to the People’s Bank of China for approval.

5. As to the commercial banks approved to engage in the entrusted business of investments of bonds and securities inside China by qualified foreign institutional investors， no modification shall be made on their license for financial business and no public announcement is required.

6. Upon the approval of the Bank and by presenting the document of approval and by reference to the Measures， a commercial bank shall file an application to the China Securities Regulatory Commission for the title of a trustee of investments of bonds and securities within borders of China by qualified foreign institutional investors.

7. The circular shall be applicable to the Chinese Mainland branches of the banks of Hong Kong， Macao and Taiwan and the wholly foreign-funded banks， equity joint banks established in the Chinese Mainland by financial institutions of Hong Kong， Macao and Taiwan by referring to the provisions concerning wholly foreign-funded banks， equity joint banks and branches of foreign banks.

All branches and business managerial departments should distribute the circular to local branches， city commercial banks and foreign-funded banks.

Taxation bureau of every province, autonomous region, municipality directly under the Central Government and municipality separately listed on the State plan:

Recently, we have received some reports that, in accordance with Article 4 of the “Circular of the State Administration of Taxation on the Execution of the Individual Income Tax Exemption for Relevant Subsidies Obtained by Foreign Individuals,”(GuoShuiFa [1997] No.54) if the individual income tax on family visit expenses obtained by a foreign individual is to be exempted, the taxpayer shall provide documents (duplicates) on the payment for his or her travel to visit family, and such documents shall be examined by the competent taxation organ. The individual income tax may be exempted for the actual expenses for family visits, as well as for a reasonable portion of the standard governing the expenses and occurrence of annual family visits. However, in the execution of the law, it is necessary to further clarify “the reasonable portion of the standard governing the expenses and occurrence of annual family visits.” This issue is hereby addressed uniformly as follows:

I. The family visit expenses for which preferential treatment for individual income tax exemption may be enjoyed shall only be limited to the expenses paid by a foreign individual for travel between the location of his/her employment in China and his/her home (including the dwelling place of his/her spouse or parents) by vehicle for no more than twice every year.

II. This Circular shall come into force as of the date of its implementation; family visit expenses which occurred before this Circular had come into force and which have not been treated for taxation shall also be executed in accordance with this Circular.

General Administration of Customs (GAC) Guangdong branch, each custom directly under GAC, branch of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) in each province, each autonomous region, and municipality directly under the Central Government; State Administration of Taxation (SAT), State Administration for Industry and Commerce (SAIC), State Administration of Foreign Exchange (SAFE), State Bureau of Quality and Technical Supervision (SBQTS):

With the approval of the State Council, Electronic System for Executing Laws at Ports (hereinafter referred as ESELP), which was jointly developed by GAC, MOFTEC, Ministry of Public Security, SAT, Peoples bank of China, SAIC, SAFE, State Administration for the Inspection of Import and Export Commodities, Ministry of Railways, Ministry of Communications, Civil Aviation Administration of China, Ministry of Information Industry, was put into experimental use in Beijing, Tianjin, Shanghai, and Guangzhou from December 15, 2000 through March, 2001. According to the requirement of circular on Spreading ESELP issued by the General Office of the State Council (GuoBanMingDian [2001] No. 12), ESELP is planned to put into use throughout the country before June 1, 2001. To ensure smooth advancement of this work, an announcement on applying for IC card by the subscriber has been jointly formulated by GAC and other five government departments. Relevant issues are clarified as below:

1. Concerned local branches of GAC, SAT, MOFTEC, SAIC, SAFE, and SBQTS shall attach great importance to examining the subscriber’s qualification to use ES ELP and appoint a special person in charge to ensure finishing local spread before May 31, 2001.

2. Concerned departments shall set up a joint examination group to distribute IC card to subscribers centrally during the initial stage of the spread (about 1-2 weeks). The customs shall provide office and related rear services for the joint examination group.

3. When examining the subscriber’s qualification, each concerned department shall verify the documents as follows:

(1) The Customs shall verify the Registration Certificate of Customs Declaration, Operator Certificate of Customs Declaration;

(2) MOFTEC and its branches shall verify the Qualification Certificate of Export Import Enterprise or Approval Certificate of Enterprise with Foreign Investment;

(3) Taxation departments shall verify Registration Certificate of Taxation (duplicate);

(4) SAIC and its branches shall verify the Business License of Legal Enterprise (duplicate) or the Business License of Enterprise (duplicate);

(5) SAFE and its branches shall verify the qualification for the verification of foreign exchange collection and payment;

(6) SBQTS and its branches shall verify the Institution Code Certificate.

4. During the period of centrally distributing IC card, the joint examination group shall only verify the hard copy of above-mentioned documents submitted by the subscriber. Each department shall double-check the electronic accounts of the subscriber after that according to the actual situation. In case of any question discovered after double-check; the subscriber’s qualification shall be deprived. After central distribution, each concerned department shall examine the subscriber’s qualification on the inter-net. In case of any alteration of legal person and business scope, the concerned department shall make corresponding revision on the inter-net.

5. Each concerned department shall closely cooperate to enhance work efficiency and ensure smooth advancement of qualification examination. Local customs directly under GAC shall notice the enterprise the time and place for centrally distributing IC card after consulting with relevant departments.

Shanghai, Tianjin, and Guangzhou Branch of the State Administration of Foreign Exchange (hereinafter SAFE), Beijing Department of the SAFE, Guangdong Branch of the General Administration of Customs (hereinafter GAC), and each Customs directly under GAC:

According to the written reply of the State Council to GAC and other 11 government departments on the Written Request on Relevant Issues Concerning Setting up An Electronic System For Executing Laws At Ports (hereinafter ESELAP), and to the instructions of the State Council Leaders on Speeding up the Establishment of ESELAP, ESELAP has been developed and tested. It was put into use experimentally on December 15, 2000 in Beijing, and is planned to operate in Shanghai, Tianjing, and Zhuangzhou at the beginning of February 2001.

A sub-system of ESELAP named Export Collection in Foreign Exchange makes use of the advanced information technology, draws support from the state telecommunication public network. The enterprise can apply for verification certificate of export collection in foreign exchange (hereinafter Verification Certificate) by inter-net at any time. SAFE can issue Verification Certificates by inter-net, set up a live nationwide electronic accounts Database of Verification Certificate in pubic data center, and provide electronic data of Verification Certificates to the customs and departments collecting state taxes for customs declarations and drawbacks. Thus ESELAP shall improve foreign exchange supervision by cross-checking electronic data, and prevent lawless persons from using forged, altered, embezzled, or falsely used paper-made Verification Certificates for foreign exchange evasion, smuggling, and drawbacks.

To ensure smooth experimental operation of the System of Export Collection in Foreign Exchange (hereinafter SECFE), relevant issues are circulated as follows:

1. SECFE is a major project of the state to formalize foreign trade and financial order, and to ensure economic safety of the state. It is also one of the sub-systems of ESELAP that go into experimental operation first. Branches of SAFE in pilot cities and every customs in the whole country shall attach great importance to the experimental operation of SECFE. Leaders at each level shall personally organize the work of propaganda, mobilization, and training in their own department, especially the work of implementation. SAFE and the customs shall each take their own responsibility and cooperate each other closely in order to establish a clear and harmonious inter-department working mechanism. SAFE shall issue Verification Certificates by inter-net seriously, and ensure the electronic accounts data of Verification Certificates authentic and correct. Customs shall check the electronic accounts data of Verification Certificates issued in pilot areas strictly, and stop all kinds of foreign exchange evasion by using forged, altered, embezzled, and falsely used paper-made Verification Certificates.

2. SAFE branches in pilot cities shall do following works strictly according to requirement:

(1) Employing new version Verification Certificates. New Version Verification Certificate refers to one that is stamped with bar code and special seal for network experiment in the column of term of validity. New version Verification Certificate needs not to be marked with term of validity. It is regarded as long-term valid.

(2) The amount of paper-made new version Verification Certificate issued by SAFE to the enterprise shall be the smaller one comparing the amount applied for by inter-net with that confirmed by the local SECFE that the enterprise can acquire. SAFE shall simultaneously input the electronic accounts data of Verification Certificate issued to the public data center.

(3) SAFE shall no longer require the applicant on the spot fill out its name in or affix its name seal to paper-made new version Verification Certificate. However, before officially using the new version Verification Certificate, the user shall fill out its name or affix its name seal, and affix its official seal to it.

(4) When conducting the procedure of verification of export collection in foreign exchange, SAFE shall examine paper-made new version Verification Certificates, customs declaration form and its special copy for verifying export foreign exchange earnings collected, check the data in electronic accounts of customs declaration form to see if they show no difference from those in paper-made customs declaration form. If so, the verification procedure shall be conducted, and the data verified shall be input into the Public Data Center timely.

(5) If new version Verification Certificate has no electronic accounts data, or electronic accounts show difference from paper-made vouchers, the SAFE branch who issued it shall accept the enterprise inquiry timely. The SAFE who accepts the inquiry shall resolve all of the problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall be corrected with the vouchers, if is from wrong electronic accounts data, the data shall be corrected or supplemented. SAFE shall ensure the accuracy of the paper-made vouchers of new version Verification Certificate and electronic accounts data, as well as the consistence between them.

3. Each customs in pilot cities shall do following works strictly according to requirement:

(1) When conducting the procedure of customs declaration for the enterprise, customs shall adhere to the principle of one copy of Verification Certificate, one copy of customs declaration form.

(2) Before declaring exports to customs, the enterprise shall record the serial number of the new version Verification Certificate at the same customs that it will declare to by inter-net in advance. The customs shall not accept unrecorded Verification Certificate.

(3) Customs who check new version Verification Certificate by external network shall examine case by case the consistence (including the serial number of the Verification Certificates, the name of enterprise, etc.) between paper-made Verification Certificate and electronic accounts on the spot of export declaration. For Customs who check new version Verification Certificates automatically by internal network, the computer shall automatically compare relevant contents (including the serial number of the Verification Certificate, name code of the enterprise) between the customs declaration form and the electronic accounts data of new version Verification Certificate. Examination shall be strengthened on the spot of export declaration to ensure voucher-to-voucher consistence, and voucher-to-electronic data consistence of customs declaration form and new version Verification Certificate.

(4) When conducting the procedure of customs clearance, customs shall write their opinion in the column of Check and Release by Customs, and make a note of been used in electronic accounts data of new version Verification Certificates by computer or by hand.

(5) In the case that goods are returned in full-amount, customs who check new version Verification Certificate by external network shall delete the information of corresponding customs declaration form, and at the same time mark the electronic accounts data of new version Verification Certificate with Goods Returned by hand. For customs who check new version Verification Certificate automatically by internal network shall delete the information of corresponding customs declaration form, the computer shall at the same time automatically mark the electronic accounts data of new version Verification Certificate with Goods Returned.

(6) In the case that customs declaration form is returned because of being filled incorrectly, customs shall reinstate electronic accounts data of corresponding new version Verification Certificate as Unused.

(7) Customs shall ensure the accuracy of the paper-made vouchers of customs declaration form and electronic accounts data, as well as the consistence between them. If customs declaration form has no electronic accounts data, or electronic accounts data show difference from paper-made vouchers, the customs who issued it shall accept the enterprise inquiry timely. The customs that accept the inquiry shall resolve all of the problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall be corrected with the vouchers. If it is from wrong electronic data, the data shall be corrected or supplemented.

4. Timetable for experimental operation of SECFE

(1) As of February 8, 2001, export enterprises in Beijing shall apply for new version Verification Certificates by inter-net, and apply for paper-made new version Verification Certificates with SAFE by presenting their IC card. New version Verification Certificate shall begin to be employed as of February 18. Customs nationwide shall check the electronic accounts data of paper-made new version Verification Certificates in Beijing by network as of February 18. Unused old version paper-made Verification Certificates of the enterprise can not be used any longer as of the same day. All of them shall be returned to SAFE for being written off in 1 month.

(2) As of March 15, 2001, every enterprise in Shanghai, Tianjin, and Guangzhou shall apply for new version Verification Certificates by inter-net, and apply for paper-made new version Verification Certificates with SAFE by presenting its IC card. New version Verification Certificate shall begin to be employed as of April 1, 2001. Customs nationwide shall check the electronic accounts data in these cities by network when enterprises in these cities begin to use paper-made new version Verification Certificate for customs declaration. Unused old version paper-made Verification Certificates of the enterprise can not be used any longer as of April 1. All of them shall be returned to SAFE for being written off in 1 month.

(3) SECFE is planned to operate nationwide as of June 1, 2001. Every enterprise, SAFE branch, and customs shall operate according to the requirement of SECFE.

5. An Announcement is distributed here as an attachment to you for smooth experimental operation of SECFE. Please make it pubic in relevant media and put it up at the office spot of SAFE and customs according to the course of experimental operation.

If there is any problem during the implementation, please report to SAFE of GAC in time.

The state taxation bureaus and local taxation bureaus of provinces, autonomous regions, municipalitie directly under the Central Government and municipalities separately listed on the State plan:

Ministry of Justice recently pointed out that, the business of agencies in China of foreign law offices is different from those of permanent agencies of other enterprises since the former agencies are allowed to operate to the extent prescribed by State policies after registration in State Administration for Industry and Commerce. Ministry of Justice also proposed to provide uniform tax invoices for such agencies on the ground that it is inconvenient for the foreign law offices to conduct normal business due to the same taxation administration as that of permanent agencies of general foreign enterprises currently. After consideration, we clarify the relevant issue as follows:

1. The said agencies are allowed to apply for purchasing and using the general invoices used nationwide so that it is easy for them to conduct normal business.

2. The said agencies, which apply for purchasing the invoices, shall establish and perfect their account books and shall account the income and expenses and cost. All the records shall be correct and complete together with legal vouchers as accounting basis.

3. The said agencies, which purchase and use the invoice, shall be levied business tax and income tax according to their actual returns in principle, not according to the income calculated on the expenditure.

The finance departments (bureaus), the state taxation bureaus and local taxation bureaus of all the provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:

The Circular of the Ministry of Finance and the State Administration of Taxation concerning the Issue of Tax Credit for Enterprise Income Tax for Homemade Equipment Purchased by Enterprises with Foreign Investment, is issued as follows to carry out the spirit of the relevant regulations stipulated by the Central Committee of the Communist Party of China and the State Council, enlarge the introduction of foreign investment, and encourage enterprises with foreign investment and foreign enterprises to use homemade equipments:

1. With regard to the homemade equipment purchased within investment amount by the enterprises with foreign investment established within the territory boundaries of the PRC, if they fall under the Encouraged Category and Restricted B Category listed in the Directive Category of the Industries of Enterprises with Foreign Investment stipulated in the Circular of the State Council concerning the Adjustment of Taxation Policies for Imported Equipments (GuoFa [1997] No.37), 40 percent of the investment for the homemade equipment purchases shall be refundable from the increased part of their enterprise income taxes of the purchasing year over those of the year before.

The methods shall be applicable to the foreign enterprises that have set up organizations or offices for manufacture or business operation within the territory boundaries of China.

If the above enterprises’ purchases of homemade equipments outside their investment total are for the purpose of improving existing equipments, manufacturing techniques and conditions with advanced and suitable new technologies, craftwork, equipments and materials to increase economic benefit, improve product quality, increase product varieties, designs and colors, promote product upgrading, enlarge export, decrease cost, save energies, enhance comprehensive resource utilizations and waste control and ensure labor protection and safety, 40 percent of their investment for homemade equipment purchases may also be creditable from their increased enterprise income taxes of the purchasing year over those of the year before.

2. The homemade equipments for tax credit refer to those manufactured by homemade enterprises for production (including necessary test and inspection for production), excluding those imported directly from abroad and those manufactured for processing and compensation trades.

3. The allowable tax credit of an enterprise with foreign investment or foreign enterprise shall not exceed its newly increased enterprise income tax of the purchasing year over that of the year before. If the amount of newly increased enterprise income tax is not sufficient for tax credit, the remaining part of investment outside tax credit shall be refundable from the newly increased tax of the next year over that of the year before the purchasing year. However, the period for continuous tax credit shall not exceed five years.

Enterprises with foreign investment and foreign enterprises eligible for unified enterprise income tax reduction and exemption policies stipulated in tax laws adopted by the Standing Committee of the National People’s Congress and laws and regulations promulgated by the National People’s Congress and the State Council can moderately extend the duration of continuous deduction. The maximum duration of continuous deduction, however, should not exceed 7 years.

4. When enterprises with foreign investment and foreign enterprises apply for tax credit for their homemade equipment purchases, they shall provide the taxation administration in charge of tax credit with valid certificates and materials including invoices for homemade equipment purchases.

5. The amount of value added tax refunded in accordance with regulations to enterprises with foreign investment and foreign enterprises for their homemade equipment purchases shall not be calculated into the prices of the equipments.

6. The depreciation amount of homemade equipments with tax credit shall be calculated on the basis of the original prices of the equipments, and deducted in accordance with regulations concerned at the calculation of taxable income amount.

7. If enterprises with foreign investment and foreign enterprises rent or transfer their homemade equipments that have enjoyed tax credit within 5 years from the purchase date, they shall repay the enterprise income tax that have enjoyed tax credit at the time of the equipments’ rent or transfer.

8. The Methods shall enter into force as of July 1, 1999. The State Administration of Taxation shall formulate detailed operational measures separately.

Pursuant to the Provisions on the Merger and Division of Enterprises with Foreign Investment (WaiJingMaoFaFa [1999] No.395) promulgated as of September 23, 1999 by the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and Commerce, relevant issues concerning customs administration are announced as follows:

I. The enterprise established through merger or division, whether as a continuation of the original enterprise or as an independently registered one, shall update its customs registration information accordingly, or re-register at the customs with the approval document from relevant government agencies.

II. For specific goods imported with duty exemption by the enterprise with foreign investment before the merger or division, and unsettled bonded imports, the enterprise established through merger or division, whether as a continuation of the original enterprise(s) or as an independently registered one, shall bear all legal obligations concerning customs supervision and regulations.

III. It shall be decided by the customs through examination according to relevant prevailing regulations whether an enterprise established after the merger or division shall continue to enjoy the preferential treatment of tax reduction or exemption. If the customs decides upon a termination of such preferential treatments, the enterprise shall pay the overdue tariff and import duties for goods imported previously with duty reduction or exemption. For specific goods imported with duty reduction or exemption whose ownership has been transferred to the enterprise with foreign investment that shall continue to enjoy such preferential treatment, the supervision period shall be calculated as of the date of the import.

IV. It shall be decided by the relevant customs bureau through examination according to relevant prevailing regulations whether an enterprise with foreign investment established through merger or division shall continue to have the operation right of bonded business. For unsettled bonded goods imported before the merger or division, the relevant enterprise with foreign investment shall proceed with re-export formalities, or pay the overdue import duties and import tax with valid approval documents or licenses.

Article 1 These Measures are formulated in accordance with the Adoption Law of the People’s Republic of China in order to regularize foreign-related adoption registration practice.

Article 2 If foreigners attempt to adopt children within the territory of the People’s Republic of China (hereinafter referred to as adoption of children by foreigners in China), they shall undertake registration according to these Measures.

If a couple, one of whom is a foreigner, attempts to adopt children in China, they also shall undertake registration according to these Measure.

Article 3 Foreigners attempting to adopt children in China shall conform to the provisions of the relevant laws on adoption both in China and in their home countries; problems arising from the difference between the provisions of the laws of their home countries and those of the Chinese laws shall be resolved through consultation by relevant departments of the government of the two countries.

Article 4 Foreigners attempting to adopt children in China shall deliver adoption applications, family situation reports and certificates to adoption organizations authorized by Chinese government (hereinafter referred to as Chinese adoption organizations) through governments of their home countries or adoption organizations authorized by governments (hereinafter referred to as foreign adoption organizations).

Adopters’ adoption applications, family situation reports and certificates stipulated in the preceding paragraph refer to following documents issued by competent agencies of their home countries, authenticated by diplomatic departments of their home countries or agencies authorized by such diplomatic departments, and authenticated by embassies or consulates of the People’s Republic of China in that country.

(1) application for transnational adoption;

(2) birth certificate;

(3) certificate of marital status;

(4) certificate of occupation, income and property;

(5) certificate of health examination;

(6) certificate indicating whether the adopter has ever been subject to critical punishment;

(7) certificate certifying the approval of the transnational adoption by the competent authority of the home country;

(8) family situation report, including the adopter’s status, the qualification and suitability of the adoption, family background, medical history, motive for adoption and specialty for caring children.

Foreigners who have lived in China for more than one year for work or study in China, if attempting to adopt children in China, shall submit the documents prescribed in the preceding paragraph except for the certificates of health examination, and shall also deliver marital status certificates, certificates of occupation, income and property, and certificates of whether they have ever been subject to criminal punishments, which are issued by the Chinese units to which they belong, as well as certificates of health examination issued by medical units at or above county level.

Article 5 Person placing out children for adoption shall submit to civil affairs departments of people’s governments of provinces, autonomous regions or municipalities directly under the Central Governments their permanent residence booklets, resident identity cards (if social welfare organizations place our children for adoption, then identity credentials of persons in charge of such organizations shall be submitted), and residence certificates of adoptees, etc., and shall submit the following certifying papers according to the respective situations:

(1) If the placing persons are the adoptees’ natural parents (including those who have divorced), they shall submit certificates on their incapability of upbringing owing to unusual difficulties and written consent agreeing to placing out children for adoption from both of the natural parents; among those, if the aoptee is placed out for adoption by a single parent because the spouse of the natural father or mother has died or has been missing, he or she shall also submit a certifying that the other spouse has died or has been missing as well as a written declaration of the parents of the dead spouse or the spouse who is missing giving up priority in rearing the child.

(2) If a guardian is the placing person because the adoptee’s parents do not have full civil capacity, he or she shall submit a certificate certifying that the adoptee’s parents have no full civil capacity and may do serious harm to the adoptee and a certificate on the guardian’s right of guardianship.

(3) If the placing person is the guardian because both of the adoptee’s parents died, he or she shall submit a certificate certifying the death of the aoptee’s natural parents, a certificate certifying the guardian’s actual bearing of obligations of guardianship as well as a written consent of other persons bearing rearing obligations on the palcing out for adoption.

(4) If a social welfare organization acts as the placing person, it shall submit a certificate of the situation concerning the abandonment and discovery of the abandoned infant or child, and a certificate of the process of the search of his or her parents or other guardians; if the adoptee is an orphan, it shall submit a certificate certifying the death or the declaration of death of the orphan’s parents as well as written consent of other persons bearing the obligations of rearing the orphan on the placement for adoption.

If a disabled child is placed out for adoption, a certificate of disability of the child issued by a medical unit at or above the county level shall also be submitted.

Article 6 The civil affairs department of the people’s government of a province, an autonomous region or a municipality directly under the Central Government shall examine the credentials and certifying papers submitted by placing persons, and issue public notices to identify or look for the natural parents for those abandoned infants or children whose natural parents cannot be identified or found; if the adoptees and placing persons are believed to meet the requirements stipulated in the Adoption Law, a list of their names shall be notified to the Chinese adoption organizations, and the following credentials and certifying papers shall be conveyed simultaneously:

(1) photocopies of placing persons’ permanent residence booklets and resident identity cards (if the placing persons are social welfare organizations, then the identity credentials of persons-in-charge of such organizations.)

(2) photocopies of certificates certifying that the adoptees are abandoned infants or orphans, their residence certificates, growth reports and health examination certificates as well as photos of the adoptees.

The public notices issued by the civil affairs department of the people’s government of a province, an autonomous region or a municipality directly undere the Central Government for identifying or looking for the natural parents of the abandoned infants or children shall be published in a local newspaper at the province level. If no natural parents or other guardians claim the deserted infants baby or children within 60 days after the publication of the public notices, they shall be regarded as deserted infants or children whose parents can not be identified or found.

Article 7 After having examined the adoption application and relevant certificates submitted by a foreign adopter and by referring to the desire of the foreign adopter, the Chinese adoption organization shall select a suitable adoptee from among the adoptees who are recommended by the civil affairs department of the people’s government of a province, an autonomous region or a municipality directly under the Central Government and who meet the requirements stipulated in the Adoption Law, and shall, through the foreign government or foreign adoption organization, send to the foreign adopter the information about the adoptee and the placing person. If the adoption is agreed to by the foreign adopter, the Chinese adoption organization shall send him or her a notice to come to China for adoption of a child, and simultaneously inform the relevant civil affairs department of the people’s government of the province, autonomous region or municipality directly under the Central Government to send the placing person a notice that consent has already been given to the adoption of the adoptee.

Article 8 Foreigners attempting to adopt children in China shall come to China for undergoing registration procedures in person. If a foreign couple adopt a child together, they shall both come to China for undergoing registration procedures; if one of the couple cannot come for some reasons, the other party shall be authorized in written form, and the power of attorney shall be notarized and authenticated by the country in which they reside.

Article 9 Foreigners attempting to adopt children in China shall sign adoption agreements with placing persons. The agreement shall be in three copies, one is kept by the adopter, one is kept by the placing person, and the third one is kept by adoption registration organ when undergoing adoption registration procedures.

After the signing of the written agreement, the parties concerned shall both register the adoption with the civil affairs department of the people’s government of a province, an autonomous region or a municipality directly under the Central Government in the locality where the adoptee’s permanent residence is registered.

Article 10 When registering the adoption, the parties concerned shall fill out the registration application for adoption of a child in China by a foreigner, submit the agreement on adoption and provide respectively relevant materials.

The adopter shall provide the following materials:

(1) the notice sent by Chinese adoption organization that they may come to China to adopt a child in China;

(2) the adopter’s identity credentials and photographs.

The placing person shall provide the following materials:

(1) the notice sent by civil affairs department of the people’s government of a province, an autonomous region or a municipality directly under the Central Government that consent has already been given to the adoption of the adoptee;

(2) the placing person’s residence booklet, resident identity card (if the placing person is a social welfare organization, the identity credential of the person-in-charge of such an organization) and the adoptee’s photographs.

Article 11 After receiving the registration application for adoption of a child by a foreigner in China and relevant materials of the adopter, adoptees and placing person, the adoption registration organ should conduct examination within 7 days; if the requirements stipulated in Article 10 of these Measures are met, the adoption shall be registered for the parties concerned, and an adoption registration certificate be issued. The adoptive relationship comes into existence from the date of registration.

The adoption registration organ shall inform the Chinese adoption organization of the result of the registration.

Article 12 If, after the adoption has been registered, adoption notarization is required by all parties or one party involved in the adoptive relationship, the adoption shall be notarized by a notary organ with the qualification of foreign-related notarization in the locality where the adoption is registered.

Article 13 Before the aoptee leaves China, the adopter shall, on the basis of the adoption registration certificate, undergo exit formalities for the adoptee with the public security organ in the locality where the adoption is registered.

Article 14 Foreigners adopting children in China shall pay for the registration to the registration organs. The standard of registration fee shall be implemented in accordance with the relevant provisions of the State.

China adoption organizations are non-profit public welfare institutions that provide services to foreigners and may charge service fees, the standard of which shall be implemented in accordance with the relevant provisions of the State.

The State encourages foreign adopters and foreign adoption organizations to make donations to the social welfare organizations in China in order to bring up abandoned infants and children there. The social welfare organization receiving donations must use all the donations to improve nurturing conditions for abandoned infants and children and may not misuse the donations for other purposes, and shall inform the donors of the use of the donations. The social welfare institutions receiving donations shall also subject themselves to the supervision of the relevant departments and make the use of the donations know to the public.

Article 15 The activities of China adoption organization shall be subject to the supervision of the civil affairs department of the State Council.

Article 16 These Measures shall come into effect from the date of promulgation. The Implementation Measure on Adopting Children by Foreigners in the People’s Republic of China, approved by the State Council on November 3, 1993 and promulgated by the Ministry of Justice and the Ministry of Civil Affairs on November 10, 1993, shall be repealed simultaneously.

Article 1 These Provisions reformulated in order to implement opening-up policy, strengthen international exchange and promote the development of foreign trade and economy.

Article 2 For permanent resident offices established by foreign enterprises, news agencies, economic and trade organizations, cultural associations and foreign legal persons upon approval by competent departments of the People’s Republic of China, if their permanent residents such as foreign citizens, overseas Chinese and dwellers form Hong Kong, Macao and Taiwan (including their spouses and minor children living with them) as well as other permanent residents (hereinafter referred to as permanent residents), who have been allowed to enter into China and have lived in China for more than one year, import articles for self use, these Provisions shall be applied. These persons include:

(1) permanent residents in permanent resident offices established in China by foreign enterprises, economic, trade and cultural organizations;

(2) permanent residents in permanent resident offices established in China by foreign non-government organizations of economic, trade and cultural associations;

(3) permanent correspondents of permanent foreign news agencies in China;

(4) permanent foreign residents in Chinese-foreign equity joint ventures, cooperative joint ventures and wholly foreign-funded enterprises in China;

(5) foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts who have been long working in China;

(6) foreign students and overseas Chinese students who have been long studying in China.

Article 3 Articles for self use such as household pickup camera, camera, portable radio cassette player, portable laser phonograph and portable computer taken into China by the six categories of permanent residents mentioned above who live in China for more than one year (i.e. their work visas or study visas are valid for more than one year) when they enter into China for the first time during the term of validity of their visas are exempted from import taxes, upon the examination and verification by the competent Customs at the places where they are situated, with the limit of only one for each variety; taxes shall be levied according to the provisions on articles exceeding the limit.

Article 4 Teaching and researching articles such as books, materials, instruments for scientific research, tools, samples and reagents taken into China by foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts conforming to the provisions of Article 2 are exempted from import taxes within the reasonable number for self use.

Article 5 Articles other than those as stipulated in Articles 3 and 4 taken into China by above-mentioned foreigners during the period of living, working and studying in China shall be handled in accordance with the Measures of the Customs of the People’s Republic of China for Supervision and Control over Belongs and Articles Carried by Passengers Entering or Exiting China.

Article 6 Imported duty-free articles prescribed above shall be supervised and controlled by the Customs according to its relevant provisions on duty-free import articles.

Article 7 Articles taken into China by permanent residents (including their spouses and minor children coming with them and residing in China) working for embassies ( or consulates) of foreign countries (including regions) in China, special organizations of the United Nations and permanent resident (representative) offices of international organizations shall be handled in accordance with current provisions.

Article 8 If there is any divergence between previous policies and provisions and these Provisions, these Provisions shall prevail.

Article 9 The General Administration of Customs are to formulate implementing rules in accordance with these Provision.

Article 10 These Provision take effect as of April 1, 1999.