Laws of the People's Republic of China

    Article 1  These Measures are formulated in accordance with the
Administrative Penalty Law of the People's Republic of China(hereinafter
referred to as the Administrative Penalty Law) for the purpose of effecting
separation of penalty decisions from collection of penalty payments, stepping
up supervision over penalty collection activities and ensuring timely turning
over the penalty payments to the state treasury.

    Article 2  These Measures shall be applicable to the collection,
payment and related activities of penalties.

    Article 3  Administrative organs making penalty decisions shall be
separated from agencies collecting penalty payments; however, those which
may collect on-site penalty payments pursuant to the provisions of the
Administrative Penalty Law are excluded.

    Article 4  Penalty payments must be turned over to the state treasury in
total. No administrative organ, organization or individual shall intercept and
retain, divide among themselves or divide among themsleves the payments in
disguised form.

    Allocation of funds required for law enforcement by administrative organs
shall be made pursuant to relevant state provisions.

    Article 5  Commercial banks and credit unions approved by the People's
Bank of China for agency business of collection and payment(hereinafter
referred to as the collection agencies) may operate business of collection
of penalty payments.

    Specific collection agencies shall be jointly studied and unifiedly
determined by the departments of finance at the corresponding levels, local
branches or sub-branches of the People's Bank of China and administrative
organs with powers of administrative penalty in accordance with law organized
by local people's governments at or above the county level. In the case of such administrative organs as the customs and foreign exchange control
which practise vertical chain of command and have powers of administrative
penalty in accordance with law making penalty decisions, specific collection
agencies shall be determined by the Ministry of Finance and the People's
Bank of China in conjunction with the departments concerned under the
State Council. In the case of the departments concerned under the State
Council with powers of administrative penalty in accordance with law to
make penalty decisions, specific collection agencies shall be determined by
the Ministry of Finance and the People's Bank of China.

    Collection agencies should have adequate networks and points to
facilitate the payment of penalties by parties interested.

    Article 6  Administrative organs shall, pursuant to these Measures and
relevant provisions of the State, sign an agreement for the collection of of penalty payments with collection agencies.

    The agreement for the collection of penalty payments shall include the
following particulars:

    (1)Names of the administrative organ and the collection agency;

    (2)Specific collection networks and points;

    (3)Budget item and budget grade of the collection agency turning over the
penalty payments to the state treasury;

    (4)The mode and time period of the collection agency to inform the
administrative organ of the status on collection of penalty payments; and

    (5)other matters which require to be expressly defined.

    An administrative organ shall, within 15 days from the date of the
conclusion of the agreement on penalty collection, submit the agreement on
penalty collection to the administrative organ at the next higher level and
the department of finance at the corresponding level for the record; the
collection agency shall submit the agreement on penalty collection to the
People's Bank of China or its local branch for the record.

    Article 7  The letter of decision on administrative penalty of an
administrative organ making the penalty decision shall expressly carry
such items as the name and address of the collection agency and the amount
payable by the party interested and the time period, and shall make it clear
whether additional penalty shall be imposed in the case of the party
interested to effect penalty payment on expiry of the time period.

    The party interested shall, in accordance with the amount of penalty
and the time period determined by the letter of decision on administrative
penalty, effect the payment of the penalty at the designated collection
agency.

    Article 8  A collection agency shall issue a receipt of penalty payment
to the party interested for the collection of penalty payment.

    The format and printing of the receipt of penalty payment shall be
determined by the Ministry of Finance.

    Article 9  In the case of the party interested effecting payment of penalty on expiry of the time period when the letter of decision on
administrative penalty has made it clear that additional penalty shall be
imposed, the collection agency shall collect additional penalty payment
pursuant to the letter of decision on administrative penalty.

    The party interested shall, in the event of having objections to the
additional penalty, first effect the payment of penalty and additional
penalty, then apply to the administrative organ making the decision on
administrative penalty for reconsideration in accordance with law.

    Article 10  A collection agency shall, pursuant to the mode and time
period provided for in the agreement on the collection of penalty payments,
inform the administrative organ making the decision on administrative penalty
in writing of the name or title of the party interested, the amount and time
of penalty paid.

    Article 11  Collection agencies shall, pursuant to the Administrative
Penalty Law and relevant state provisions, directly turn over the penalty
payments collected to the state tresury.

    Article 12  The state treasury shall, pursuant to the provisions of the
Regulations of the People's Republic of China on the State Treasury, check
the account with the Ministry of Finance and the administrative organs
at regular intervals to insure that the penalty payments collected and the
amount of penalties turned over to state treasuries coincide./// tally

    Article 13  Collection agencies shall facilitate the payment of penalties
by parties interested in such areas as collection networks and points,
business hours, services facilities and formalities of payment.

    Article 14  Departments of finance shall pay service fees to collection
agencies. The specific rates shall be determined by the Ministry of Finance.

    Article 15  These Measures shall be applicable to penalty decisions
made in accordance with law and penalty payments collection by organizations
having the functions of managing public affairs authorized by laws and
regulations and by organizations with entrustment in accordance with law.

    Article 16  The Ministry of Finance shall, in conjunction with the
People's Bank of China, organize the implementation of these Measures.

    Article 17  These Measures shall enter into force as of January 1, 1998.