Laws of the People's Republic of China

Circular of China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, China National Vegetable Oil Association and China Association of Enterprises with Foreign Investment on Transaction of Qualifications for Import of Bean Oil, Palm Oil, and Colza Oil of 2007

All the relevant enterprises:

The auditing work on qualifications for import of bean oil, palm oil and colza oil of 2007 shall be started today, and the cooperation team for import of vegetable oil composed of China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products (CFNA), China National Vegetable Oil Association (CNVOA) and China Association of Enterprises with Foreign Investment (CAEFI) shall continue to be responsible for it. The relevant matters are hereby noticed as follows:

1.

Where an enterprise has acquired the qualification for import of bean oil, palm oil and colza oil in 2006, the qualification thereof shall continue to be valid in 2007.

2.

The relevant standards in the Circular on Implementation of Enterprises Qualification Standards for Import of Bean Oil, Palm Oil, and Colza Oil which is promulgated in 2006 shall continue to be applied to the qualifications for import of bean oil, palm oil and colza oil in 2007. Enterprises which accord with the condition, may apply for the import qualification. An enterprise which put forward an application shall put on records to the institution authorized by Ministry of Commerce, and meanwhile, report the declaration materials to the cooperation team for import of vegetable oil, the deadline of which is December 25, 2006 (Postal Address: Room 320, Xitangzi Bystreet No.21, Dongcheng District, Beijing; Cooperation Team for Import of Vegetable Oil; Postal Code: 100006).

3.

After auditing by the cooperation team for import of vegetable oil, the enterprises, chambers and associations which accord with the 2007 year's qualification conditions for import of bean oil, palm oil and colza oil shall be promulgated on internet.

Contact Persons:

Jiang Xiansheng, CFNA

Tel.: 010-65598242

Fax: 010-65132570

Wang Junzi, CNVOA

Tel.: 010-66095266

Fax: 010-66038284

Wen Xiaoguang, CAEFI

Tel.: 010-85226278

Fax: 010-85226262

Appendix: Qualification Standards for Import of Bean Oil, Palm Oil, and Colza Oil

China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products

China National Vegetable Oil Association

China Association of Enterprises with Foreign Investment

December 4, 2006 Appendix: Qualification Standards for Import of Bean Oil, Palm Oil, and Colza Oil and the Declaration Procedure

1.

An import enterprise of bean oil, palm oil and colza oil shall accord with the following conditions:

(1)

It is registered at commercial and industrial administrative department before January 1, 2006. Where it is a foreign-funded enterprise, it must be approved to be entitled to engaging in import and export business and distribution. Where it is a foreign-funded manufacturing enterprise, its business scope must include production, utilization and operation of vegetable oil business.

(2)

Where it has acquired the tariff quotas for import of bean oil, palm oil and colza oil of 2005 or it is a trade enterprise,

(a)

its registered capital must be at least 10 million Yuan;

(b)

its annual sales volume must be at least 200 million Yuan; and

(c)

it must have imported at least 30,000 tons of bean oil, palm oil and colza oil in the recent 3 years.

Where it is a manufacturing enterprise,

(a)

its registered capital must be at least 500,000 Yuan;

(b)

its annual sales volume must be at least 100,000,000 Yuan. If it is a food production enterprise, its annual sales volume must be at least 3,000,000 Yuan;

(c)

it must be an oils processing enterprise producing refined oil with the capacity of processing at least 200 tons of crude oil per day, or it must be a food production enterprise which uses palm oil as direct raw material and annually consumes at least 3000 tons of palm oil; and

(d)

it has acquired national Production Permit for Industrial Products. and

(3)

It has had no acts in violation of the relevant laws and regulations in the recent 3 years.

2.

Declaration Procedure

Where an importing enterprise accords with the aforesaid conditions, it shall put on records at the institution authorized by the Ministry of Commerce and send the copies of the materials to the cooperation team for import which shall, in accordance with the aforesaid qualification standards for import enterprises, be responsible for conducting qualification auditing on the enterprises which submitted the materials.

The Chamber and Association shall notice the enterprises which accord with the import qualification prior to December 31, 2005.