Laws of the People's Republic of China

Announcement on the First Public Bidding for Export Quotas of Rush family and its Products of 2007

The first public bidding for export quotas of Rush family and its products of 2007 will start on December 19, 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 Bidding: 15,540,000 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 19 and 20, 2006

Time for Ending the Invitation for Bidding: 11¡Ã00, December 20, 2006

Time for Opening Bid: 14¡Ã00, December 20, 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 010-67870108 and 010-67800343 respectively.

VI.

Base Price for Bid: 0.40 Yuan per kg.

Any bid document with a price lower than the base price shall be treated as an invalid bid by the Committee for Invitation for Bid for Export Commodity Quotas.

VII.

Amount of Bid

Average Annual Amount of export Goods Supply of¡¡¡¡¡¡¡¡¡¡¡¡¡¡Maximum Amount of Bid

Below (including) 200,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡70,000 kg

From 200,000 kg to 400,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡150,000 kg

From (including) 400,000 kg to 1,000,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡300,000 kg

From (including) 1,000,000 kg to 2,000,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡500,000 kg

From (including) 2,000,000 kg to 3,000,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡1,000,000 kg

From (including) 3,000,000 kg to 4,000,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡1,500,000 kg

Above (including) 4,000,000 kg¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡1,700,000 kg

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 X50%, note that the Amount of Export Goods Supply herein does not include the amount of self-operated exports). 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 shall incept its maximum amount of bid on its electronic bid document.

Amount of Bid of Foreign-funded Enterprises: The Maximum Amount of Bid of a Foreign-funded Enterprise = Its Scale of Export Approved by Ministry of Commerce X60% the Amount of Winning Bid of this Negotiated Bidding; the all-year amount of winning bid of an foreign-funded enterprise shall not exceed its scale of export approved by Ministry of Commerce.

Any bid document with an amount of bid above its maximum amount of bid shall be treated as an invalid bid by the Committee for Invitation for Bid for Export Commodity Quotas.

VIII.

This bidding shall be opened on December 20 2006, and the preliminary result of winning bid will be promulgated on www.ec.com.cn on December 21. In case an enterprise which has any question, it may submit to the Bidding office before 16¡Ã00, December 22. Any bidding enterprise may inquire about its status of winning bid via www.ec.com.cn after 9¡Ã00, December 29. The Bidding Office will not issue a written Notice for Winning Bid.

IX.

Deposit for Winning Bid

The deposit for winning bid for this invitation for bid is 20% of the award amount for the bid winner, namely, any enterprise which won the bid shall remit the deposit for winning bid(price of winning bid X amount of Winning bid X 20%) 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.

X.

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

Committee for Invitation for Bid for Export Commodity Quotas

December 8, 2006