Laws of the People's Republic of China

Circular of the Ministry of Commerce, the Ministry of Finance, the State Administration of Taxation, the State Administration for Industry and Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange on Exercising the Work of Joint Annual Inspection on Foreign-funded Enterprises of 2006

The administrative departments of commerce, public finance departments (bureaus), State tax bureaus, local tax bureaus, administrations of industry and commerce, statistics bureaus as well as foreign exchange bureaus of each provinces, autonomous region, municipality directly under the Central Government, city specifically designated in the state plan and the Xinjiang Production and Construction Corps:

Exercising joint annual inspection on foreign-funded enterprises is a significant measure of our country to transform the government's managerial mode and improve investment environment. In order to earnestly implement the principle of the Notice on the Implementation Scheme for the Joint Annual Inspection on Foreign-funded Enterprises (Wai Jing Mao Zi Fa [1998] No. 938, hereinafter referred to as the Notice) and do a good job in the joint annual inspection on foreign-funded enterprises in 2007, the relevant issues are hereby informed as follows;

1.

Upon the approval of the State Council, the General Administration of Customs may not be on the team of the joint annual inspection, meanwhile, the National Bureau of Statistics is added as a member thereof. Each joint annual inspection department shall, in strict accordance with the requirements of the Notice, organize the joint annual inspection on foreign-funded enterprises, and shall, in the process of work, strengthen coordination and cooperation, carefully arrange, elaborately organize, actually take effective measures and make more efforts to publicize so as to enhance the enterprises' participating rate. The relevant departments of annual joint inspection shall timely sort out, nullify and revoke the enterprises without capital, site and structure, and shall, in accordance with law and regulations, handle and punish enterprises that fail to declare annual inspection, make unfaithful declaration or commit law-breaking or rule-breaking acts in production or business operations

2.

The joint annual inspection on foreign-funded enterprises is from March,1 to June, 30, 2007. The inspection content thereof is the enterprises' operation status in 2006.

3.

Each joint annual inspection member shall further intensify communication and coordination, give full play to the existing network resources, make the on-line annual inspection develop orderly, and try out electronic signature and seal in partial conditional provinces and municipalities so as to further lower enterprises' burden and realize the on-line inspection in the true sense.

4.

Joint annual inspection members shall reinforce direction on the grass-rooted inspection work, timely grasp the progress of the inspection, coordinate and resolve problems arised during the inspection so as to ensure that the local inspection work develops orderly. And they shall strengthen the administration on the intermediary institutes such as accounting firm, etc., and shall strictly handle any rule-breaking act committed by intermediary institutes, transfer it to competent departments if necessary to adopt corresponding industrial administration measures.

5.

Each joint annual inspection department shall reinforce training governmental departments and joint annual inspection personnel so as to improve the personnel's vocational level and guarantee the smooth and highly effective inspection.

The Ministry of Commerce

The Ministry of Finance

The State Administration of Taxation

The State Administration for Industry and Commerce

The National Bureau of Statistics

The State Administration of Foreign Exchange

March 1, 2007