Laws of the People's Republic of China

Ministry of Commerce

Official Reply of Ministry of Commerce on Related Issues of Transacting Confirmation Letter of Exemption of Foreign-funded Enterprises of Encouraged Categories

Ministry of Commerce

April 6, 2006

Departments of commercial administration of all provinces, autonomous regions, municipalities, separately listed cities in plan and Xinjiang Production and Construction Corps:

1.

Since no adjustment has been made to regulations of "confirmation letter" and "import certification" and the formality procedures, all departments should continue to implement the current regulations strictly.

2.

In accordance with above formality procedures and specific operating measures, functions, authorities and related requirements of commercial departments of transacting "confirmation letter" and "import certification" remain unchanged. Please all commercial departments continue to well accomplish tasks strictly in line with related regulations.

3.

All departments of commercial administration should strictly follow related regulations, go thorough formalities of exemption for imported facilities of qualified foreign-funded enterprises and enhance overseas cooperation, reporting situations of transaction to Ministry of Commerce for registration timely.

Ministry of Commerce will strengthen supervision and instruction on formalities of "confirmation letter" and "import certification" below limitation, those unregistered or falling short of related regulations will be corrected or canceled. For cases of gross violation, Ministry of Commerce will suspend releasing qualification of "confirmation letter" and "import certification", and inform related customs of suspending formalities of export exemption together with General Administration of Customs.

If encountering any problem, please report to Ministry of Commerce (Department of Foreign Investment Administration).

Ministry of Commerce

Apr 6, 2006