Laws of the People's Republic of China

Announcement on the First Negotiated Bidding for export quotas of Rush family and its products of 2007

The first negotiated bidding for export quotas of Rush family and its products of 2007 shall start on December 14, 2006. In accordance with the relevant provisions of Measures for the Invitation of Bid for Export Commodity Quotas and the Rules for the Implementation of Invitation for Bids for Agricultural Product Export Quotas (Wai Jin Mao Mao Fa [2001] No.670), the relevant matters are hereby promulgated as follows:

I.

Names of the Commodities under the Invitation for Bids and Their Coding (hereafter the tariff serial numbers affirmed by the adjustment in 2007 are to be treated as final)

1.

Rush (cleaned, bleached or dyed)

14019030.10£¬temporarily not arranged for a invitation for bid

2.

Rush Products

46012021.11£¬Rush-made Jacquard mat, double-sided mats and pads;

Mats (with unit area above one square meter, whether binding or not);

46012021.12, Other Rush-made mats of (with unit area above one square meter whether binding or not);

94042100.10, Rush-covered mats of (with unit area above one square meter whether binding or not).

II.

Amount of Biding: 6,660,000 kg

III.

Qualification for Bid

1.

Possessing the right to operate imports and exports, being registered at the administrative department for industry and commerce, and having acceded to China Chamber of Commerce for I/E of Light Industrial Products & Arts-Crafts (where it is a foreign-funded enterprise, it must be on China Association of Enterprises with Foreign Investment);

2.

The registered capital amounting to 500,000 Yuan and sales income (including exports and domestic sale) in 2005 amounting to 3,000,000 Yuan; and

3.

It is an export enterprise whose average annual performance of Rush-made products export from 2004 to 2006 (form January to October) amounts to 50,000 kg; or it is a production enterprise whose average annual performance of export goods supply from 2004 to 2006 (form January to October) amount to 400,000 kg and who possess the right to operate foreign trade; or it is an foreign-funded enterprise whose exporting scale is approved by Ministry of Commerce.

IV.

Time for Bid

Time for Biding: December 14 and 15, 2006

Time for Ending the Invitation for Bidding: 11¡Ã00, December 15, 2006

Time for Opening Bid: 14¡Ã00, December 15, 2006

V.

Means of Bid

Bids will be conducted via www.ec.com.cn. An enterprise may send only one electronic bid document before the time point for ending the invitation for bidding. When an enterprise successfully sent more than two (including two) electronic bid documents, the bid documents, shall be regarded as invalid. In case an enterprise fails to send an electronic bid document prior to the provided time limit, it shall be regard as an automatic abandon of its qualification for bid.

China International Electronic Commerce Center (EDI) shall be responsible for the technical guarantee work for the electronic bids. Problems on concrete operation shall be interpreted by EDI, the telephone and fax of which are 010-67870108and 010-67800343 respectively.

V.I

Amount of Bid

The Bidding office shall determined the maximum amount of bid of an enterprise according to its average annual performance of export goods supply from 2004 to 2006 (from January to October) (Amount of Export Goods Supply = Amount of Export + Amount of Export Goods Supply ¡Á50%, note that the Amount of Export Goods Supply herein does not include the amount of self-operated exports). Where it is a foreign-funded enterprise, the amount of bid thereof shall be determined in terms of the exporting scale as approved by Ministry of Commerce. China International Electronic Commerce Center of the Ministry of Commerce shall, after approval of the Committee for Invitation for Bid for Export Commodity Quotas, determine the maximum amount of bid for an enterprise by means of the electronic bid document. An enterprise may incept its maximum amount of bid in its electronic bid document. Any bid document with an amount of bid above its maximum amount of bid shall be treated as an invalid bid.

VII.

Base Price for Bid

All the enterprises whose bid price is not lower than the level of the base price for bid as provided for by the Committee for Invitation for Bid are bid winners.

A bidding enterprise may directly incept e base price for bid as provided for by the Committee for Invitation for Bid in its own electronic bid document.

VIII.

Price of Winning Bid and Amount of Winning Bid

The price of winning bid of a bid winner is its price of bid.

The amount of winning bid of an enterprise shall be calculated according to the following formula (the all-year total amount of winning bid by a foreign-funded enterprise shall not exceed the scale approved by Ministry of Commerce):

The Amount of Winning Bid of an Enterprise=the Amount of Invitation for Bid ¡Áthe Bidding Sum of the Enterprise (the Price of Bid Quota ¡Áthe Amount of Bid)/ Summation of the Bidding Sum of each Bid Winner (the Price of Bid Quota ¡Áthe Amount of Bid)

IX.

Inquiry of the Result of Winning Bid

This public bidding shall be opened on December 15 2006, and the preliminary result of winning bid will be promulgated on www.ec.com.cn on December 18. In case an enterprise which has any question, it may submit to the Bidding office before 16£º00 of December 19. Any bidding enterprise may inquire about its status of winning bid via www.ec.com.cn after 9£º00 of December 29. The Public Bidding Administration will not issue a written Notice for Winning Bid.

X.

Deposit for Winning Bid

The deposit for winning bid for this invitation for bid is 20% of the award amount for the bid winner. Any enterprise which won the bid shall remit the deposit for winning bid(price of winning bid ¡Áamount of winning bid¡Á20%) into an appointed bank account(Name of the Entity: China Chamber of Commerce for I/E of Light Industrial Products & Arts-Crafts; Bank for Opening the Account; Beijing Wanda Square Branch of China CITIC Bank; Account Number: 7112410182600001628) before January 20, 2007.Any enterprise which fails to do so shall be punished in accordance with the relevant provisions of Measures for Invitation of Bid.

XI.

The Address of the Bidding office of Export Quotas of Rush family and its Products: 10/F, Building 12, Panjiayuan Nanli, Chaoyang District, Beijing

Contact Tel.: 010-67732681£¬87789545

Fax: 010-67700374

XII.

List of the Enterprises Participating in this Negotiated Bidding

1.

Ningbo Arts & Crafts I/E Corp.

2.

Zhejiang Arts & Crafts I/E Co., Ltd

3.

Jiangsu Holly Corporation

4.

China Plaited Products Co., Ltd.

5.

Ningbo Zhonglin Foreign Trade Co., Ltd

6.

Shanghai Arts & Crafts & Daily Necessities I/E Co., Ltd

7.

Xia Men Hua He Co., Ltd.

8.

Ningbo Xinyi Rush Products Co., Ltd.

9.

Sichuan Arts & Crafts I/E Corp.

10.

Ningbo Haifeng Arts & Crafts & Knitting Co., Ltd

11.

Ningbo Kaicheng Arts & Crafts Co., Ltd

12.

Sichuan Eyebrow Mountain Xinda Arts & Crafts Co., Ltd

13.

Ningbo Hengtai Straw Products Co., Ltd

14.

Ningbo Xinxing Arts & Crafts Co., Ltd

15.

Ningbo Sentian Decoration Products Co., Ltd

16.

Ningbo Xingning Arts & Crafts Industrial Corp.

17.

Ningbo Reyda International Economic & Trade...Co., Ltd.

18.

Anhui Arts&Crafts Imp.&Exp. Co., Ltd.

19.

Ningbo Tianyun Straw Art Co., Ltd.

20.

Shanghai Xingri Mats Products Co., Ltd.

21.

Shanghai Jingmao Industrial Co., Ltd

22.

Ningbo Huijia Knitting Co., Ltd

23.

China Arts & Crafts Nanjing I/E Corp.

24.

Ningbo Huabei Knitting Co., Ltd

25.

Taizhou Dubian Arts & Crafts Co., Ltd.

26.

Anhui Chuzhou Foreign-trade Straw Arts & Crafts Products General Factory

27.

Yuyao Jinteng Agricultural Products Development Co. Ltd.

28.

Taizhou Taifeng Straw Products Co., Ltd.

29.

Zhejiang Yiwei Arts & Crafts Co., Ltd.

30.

Ningbo Meihu Straw Products Co., Ltd.

31.

Ningbo Yinzhou Xingming Arts & Crafts & Knitting Co., Ltd.

32.

China Tea Co. Ltd.

33.

Hubei Beige Arts & Crafts Co., Ltd.

34.

Hefei Yiyuan Straw Products Co., Ltd.

35.

Ningbo Yingzhou Lanbao Arts & Crafts Factory

36.

Ningbo Haitian International Trade Co., Ltd.

37.

Ningbo United Group Imp and Exp Co., Ltd.

38.

Ningbo Yinzhou Hengye Industry and Trade Co., Ltd.

39.

Anhui Huaying Straw Arts & Crafts Co., Ltd.

40.

Zhejiang Dida Imp. and Exp Co., Ltd.

41.

Ningbo Jiayuan Knitting Factory

42.

Silvertime Holding Co., Ltd.

43.

Zhejiang Huiling Foreign Trade Co., Ltd.

44.

Ningbo CNACC Import & Export Co., Ltd.

45.

Zhejiang Orient Holdings Co., Ltd.

Committee for Invitation for Bid for Export Commodity Quotas

December 8, 2006