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DETAILED RULES FOR THE IMPLEMENTATION OF THE REGULATIONS ON THE CONTROL OF GOLD AND SILVER OF THE PEOPLE'S REPUBLIC OF CHINA

DETAILED RULES FOR THE IMPLEMENTATION OF THE
REGULATIONS ON THE CONTROL OF GOLD AND SILVER OF THE
PEOPLE'S REPUBLIC OF CHINA

(Promulgated by the People's Bank of China on
January 1, 1984)

 



SUBJECT: FINANCE & BANKING

ISSUING-DEPT: PEOPLE'S BANK OF CHINA

ISSUE-DATE: 01/01/1984

IMPLEMENT-DATE: 01/01/1984

LENGTH: 3508 words

TEXT:

These detailed Rules are formulated in order to implement the "Regulations of the People's Republic of China on the Control of Gold and Silver".

[Article 1] As provided in Article 4 of the Regulations of the People's Republic of China on the Control of Gold and Silver (hereinafter referred to as the Regulations), the People's Bank of China is the competent institution authorised by the State to control gold and silver, and functions in accordance with the Regulations and these detailed Rules.  Where there is no People's Bank of China, branches of the People's Bank of China in provinces, municipalities and autonomous regions (hereinafter referred to as branches) may request relevant specialised banks (hereinafter referred to as agencies) to handle various matters concerning gold and silver control within the scope of their authority.

[Article 2] In accordance with Article 2 of the Regulations and the relevant State stipulations, the platinum (white gold) purchased by the People's Bank of China shall be resold to the various commodity departments through its branches in provinces, municipalities and autonomous regions.

Departments of cultural relics shall not export or sell on the domestic market gold and silver purchased by them.  Where it is necessary to export or sell on the domestic market, they must apply to the People's Bank of China for approval and supply.

[Article 3] In accordance with Article 3 of the Regulations, the State pursues a policy of unified control, monopoly purchase and distribution of gold and silver.  All the income and expenditure of gold and silver of the State-owned enterprises and undertakings and collective urban and rural economic organisations, which are engaged in the production, refinement, processing, recovery and sale of gold and silver, and those of wholly overseas-Chinese owned enterprises, wholly foreign owned enterprises and Sino-foreign joint ventures, shall be incorporated into the State plan for the receipt and expenditure of gold and silver, and shall be controlled by the People's Bank of China strictly in accordance with the provisions of the Regulations and these Rules.

[Article 4] Gold and silver legally gained by individuals and under the protection of the State as provided in Article 6 of the Regulations, refers to gold and silver which is inherited according to law and presented by relatives and friends, legally purchased, received as a reward by departments concerned or which is procured by any other lawful means.

[Article 5] In accordance with Article 7 of the Regulations which stipulates gold and silver shall not be used as a pricing unit by any unit and individual and that private trade in gold and silver or the use of gold and silver as a loan or as collateral for a credit shall be forbidden, claims and debts between units, between individuals and between units and individuals shall under no circumstances be settled with gold or silver in kind.

[Article 6] In accordance with Article 8 of the Regulations, all purchases of gold and silver shall be conducted by the People's Bank of China.  All the gold and silver purchased by its agencies must be resold to the People's Bank of China at the original purchasing prices.

[Article 7] In accordance with Article 10 of the Regulations, all domestic units having waste residue, waste liquid, waste solids containing gold and silver (hereinafter referred to as the three gold-and-silver-containing wastes) shall adopt effective measures to recover gold and silver from the three gold-and-silver-containing wastes.  In case of difficulty, this recovery may be entrusted to or these wastes be sold to a professional recovering enterprise.  Except for that which is permitted for re-utilisation by the People's Bank of China, all the recovered gold and silver must be sold to the People's Bank of China or its agencies.

Where units neither adopt effective measures to retrieve the three gold-and-silver-containing wastes nor sell them to nor entrust their retrieval to a professional recovering enterprise, the supply of gold and silver to those units shall be reduced according to the specific conditions.

Wholly Overseas-Chinese owned enterprises, wholly foreign owned enterprises and Sino-foreign joint ventures and foreign business people must not engage in the recovery of gold and silver.

[Article 8] The unclaimed gold and silver mentioned in Article 13 of the Regulations refers to such gold and silver as is excavated by any unit or individual in the course of digging, building, construction, cultivating and other activities.

[Article 9] In accordance with Article 14 of the Regulations, all gold and silver confiscated by State organisations in the fields of public security, the judiciary, Customs, industrial and commercial administration, taxation, etc., shall be promptly resold to the People's Bank of China.  Any counterfeit gold and silver shall be crushed by the People's Bank of China or by the People's Bank of China with the participation of other departments concerned.

"Paid into the Treasury" as prescribed in Articles 13 and 14 of the Regulations means turning funds over to the local financial authorities.

[Article 10] In accordance with Article 15 of the Regulations, the procedures for filing an application for the use of gold and silver and for approving the relevant plan are as follows:

(1) Production units and scientific research units which need gold and silver as raw materials, must work out an annual plan for the use of gold and silver according to the production plan set by the State and in accordance with the principle of making economical use of gold and silver.  After it is approved with signature by the competent department, the annual plan shall be submitted to the local People's Bank of China or its agency.

(2) Branches of the People's Bank of China at various levels or their agencies must examine and verify applicants' production plans, the quality and marketing of their products, the quotas of gold and silver consumption, percentage of products meeting standards, stocks of gold and silver and recovery from the three gold-and-silver-containing wastes and then submit their findings to the next higher authorities.  The head office of the People's Bank of China shall first make an overall balance and then set an annual plan for the allocated sales of gold and silver to the lower levels.

(3) Branches of the People's Bank of China at various levels or their agencies shall organise the supply in separate batches according to the annual quota of allocated sales of gold and silver set by the head office of the People's Bank of China.  The People's Bank of China at various levels or their agencies must not supply in excess of the planned figure, nor reduce, nor delay the supply at will.

(4) Annual plans for the use of gold and silver by military industrial enterprises shall be sent directly to the local branch of the People's Bank of China for examination and submission to the head office for approval.

(5) Before the annual plan for the supply of gold and silver is issued by the head office of the People's Bank of China, its branches may supply in advance certain amounts of gold and silver according to the progress of production in units using gold and silver.

(6) Newly-established and expanded units or new products which use gold and silver as raw materials must be examined in advance by the local People's Bank of China or its agency, and then reported to the branch bank for approval.  Otherwise, no gold and silver shall be provided.

(7) The annual quota for the allocated sales of gold and silver is valid within the year it is granted and shall be invalid in the following year.

[Article 11] The gold and silver materials (including semi-finished products) mentioned in Article 17 of the Regulations include: gold and silver allocated by the People's Bank of China; all kinds of processed gold and silver materials; chemical products containing gold and silver; bits and pieces of gold and silver left over in the course of production; and gold and silver recovered from the three gold-and-silver-containing wastes.

The surplus gold and silver materials in a unit using gold and silver may be redistributed to other units requiring it for use, subject to the consent of the local People's Bank of China or its agency, and at the same time the quota of allocated sales for the user unit shall be checked and reduced correspondingly.  Redistribution between provinces, municipalities and autonomous regions may be conducted with prior approval by the respective local branches of the People's Bank of China on both sides.

Redistribution of gold and silver by a military industrial enterprise may be conducted with prior approval by the local branch of the People's Bank of China.

[Article 12] According to Article 19 of the Regulations, units applying to deal in (including processing and marketing) gold and silver products, chemical products containing gold and silver or in the recovery of gold and silver from the three gold-and-silver-containing wastes (hereinafter referred to as managing units) shall be those which handle the following business:

(1) Gold and silver products: gold and silver ornaments, utensils and other handicrafts; wire, pipes, rods, slices, foils, laboratory crucibles, contacts, tools, electroplates, electroplating spare parts and other production implements; scientific research equipment, medical apparatus and instruments, gold and silver alloy-based products, etc.

(2) Chemical products containing gold and silver, including gold chloride, gold and potassium cyanide, gold water, silver nitrate, silver oxide, silver chloride, silver iodide, silver bromide, etc.

(3) Three gold-and-silver-containing wastes: discarded refining crucibles, slag, ash, anode slurry, gutter slurry, fixing bath, developing water, film, photographic paper, used electrical switches, used electronic elements, etc.

Units applying to handle gold and silver products, gold and silver chemical products and the recovery of gold and silver from the three gold-and-silver-containing wastes must report to the competent departments for examination and approval.  After being examined and approved by the local branch of the People's Bank of China, the unit shall register with the local administration for industry and commerce for a business licence.

Any managing unit which has not been registered according to the above-mentioned procedures for examination and approval must go through these procedures again.  No unit may engage in business unless approved and registered.  The People's Bank of China at various levels or their agencies have the right to supervise and inspect these managing units.  A managing unit shall provide accurate information and data concerning its operation to the local branch of the People's Bank of China or its agency.

[Article 13] In accordance with Article 20 of the Regulations which stipulates that managing units must conduct gold and silver business within the ratified scope, these units shall be subject to the following restrictions in their operations:

(1) Supply of gold and silver to units engaged in chemical products containing gold and silver, welding rods or plates must be within and not beyond the plan ratified by the relevant branch of the People's Bank of China.

(2) When a managing unit is entrusted with the processing of gold and silver products by a unit using gold and silver, a transfer of their quota of gold and silver must first be completed through the branch concerned of the People's Bank of China, and the required gold and silver shall be supplied by the People's Bank of China in the user's locality and any direct acceptance of such metals from the entrusting unit shall be prohibited.

(3) Units engaged in recovering gold and silver from the three gold-and-silver-containing wastes in one place may not purchase or recover waste residue, waste liquid or waste solids containing gold and silver in another locality without the permission of the local branches of the People's Bank of China in both localities.

(4) Domestic institutions and individuals are forbidden to purchase waste residue, waste liquid and waste solids containing gold and silver for export under the commission of any foreign businessperson.

(5) Branches of the People's Bank of China may assign units recovering the three gold-and-silver-containing wastes to undertake processing work such as melting and extracting gold and silver under the commission of user units.

[Article 14] Article 22 of the Regulations provides that jewellers may purchase for export jewel ornaments inlaid with gold and silver.  These are defined as ornaments inlaid with jewels of which the jewels represent the principal value.  All the gold and silver settings must be sold to the local branches of the People's Bank of China or their agencies.

[Article 15] The provisions in Article 23 of the Regulations, that individual silversmiths in the borderland minority nationality regions and in the coastal areas where relatives of overseas Chinese live in relatively concentrated communities may, on a commission basis with permission, engage in the making and repairing of gold and silver articles, shall apply also to those who are in inland autonomous prefectures (counties) with minority nationalities.  Individual silversmiths in other areas are strictly forbidden to engage in such business.

Individual silversmiths may not accept commission processing of gold and silver products for foreign business people.

[Article 16] In accordance with Article 24 of the Regulations, any individual who wants to mail gold and silver ornaments within the country may do so provided that personal documentation produced by the sender, or an invoice, or a special invoice issued by a domestic gold and silver managing unit is presented to the postal authorities.

Personal documentation as described in the preceding paragraph includes a personal work card, student identity card, retirement card, leave card, residence booklet and other legal documentation sufficient to prove one's identity.

Domestic organs may mail gold and silver within China upon presentation of such documentation.

[Article 17] In accordance with Article 25 of the Regulations, no restriction shall be imposed on the amount of the gold and silver to be brought into the People's Republic of China, but declaration and registration of the names of the items, the number of pieces and the weight of the gold and silver must be made with the Customs at the place of entry into the People's Republic of China.  Gold and silver brought in without declaration and registration at the time of entry shall not be permitted to be taken out of the country.

[Article 18] According to the provisions of Article 26 of the Regulations on the taking or retaking abroad of gold and silver:

(1) Persons who go abroad to visit relatives, as tourists or for an official visit or those who are sent abroad or to Hong Kong and Macao for study or work and who carry abroad gold and silver or objects made from them, must declare and register the items at Customs with the indication of bringing them back on return.  The amounts of gold and silver limited to each person are as follows:

Gold ornaments under 5 qian (under the 16 liang system, as is used below, and equivalent to 15.625 grams) and silver ornaments under 5 liang (equivalent to 156.25 grams) may be allowed out of the country following Customs inspection.

(2) Persons entering China who wish to take the gold and silver in their possession out again, shall be permitted to do so following Customs inspection with regard to the amount declared and registered at the time of entry.  The portion exceeding the previously declared amount shall not be permitted to be taken out of the country.

(3) Those who for justified reasons wish to take out gold and silver but who are not covered by the above two paragraphs are required to hold a certificate issued by their own unit, by their urban street office or by an organ of the People's Government at higher than township (rural commune) level, as well as certificates of approved exit issued by the local People's Bank of China in respect of the names and quantities of items of gold and silver to be taken out.  Customs shall allow the exit of such items upon examination and registration.

(4) Where foreign trade departments, wholly overseas-Chinese owned enterprises, wholly foreign owned enterprises, Sino-foreign joint ventures and foreign business people take abroad gold and silver articles made from the gold and silver supplied by the People's Bank of China, Customs clearance may be given against the certificate issued by the local People's Bank of China.

[Article 19] The "Special Receipt" provided for in Article 27 of the Regulations refers to one which is printed in a standard form by the People's Bank of China and supplied by its branches concerned to the units which are designated to deal in gold and silver.

[Article 20] In accordance with Article 28 of the Regulations, those who leave China to settle permanently abroad (including Hong Kong and Macao), shall each be allowed to take out gold and silver materials in the following maximum amounts: gold ornaments 1 liang (31.25 grams), silver ornaments 10 liang (312.50 grams), silver utensils 20 liang (625 grams).  Any excess amount may be returned to relatives or friends at home or be converted at the local People's Bank of China.  Under special circumstances and with justified reasons, Customs clearance and registration may be given against a certificate issued by the declaring person's own unit or the urban street office in a city or the competent authority of a People's Government of township (rural commune) level or above, together with a certificate issued by the local People's Bank of China after inspection with regard to the names and amount of the gold and silver items to be taken abroad. 

[Article 21] In accordance with the provisions of Article 29:

(1) Enterprises with overseas Chinese investment, enterprises with foreign investment and Chinese-foreign joint ventures in the People's Republic of China must declare and register with the Customs the weight, percentage of purity and use of any gold and silver which they may import as raw materials for production.

(2) The above-mentioned enterprises must present the Customs declaration of the imported gold and silver and the processing contracts to the local People's Bank of China for inspection and record.

(3) Before the prcessed products are sent outside the country, the local People's Bank of China shall examine the gold and silver content of the products, check the relevant contract and record in detail each time before issuing an export certificate.

(4) At the time of exit of the goods, Customs clearance shall be given against the certificate mentioned in the preceding paragraph.  Without the approval and certification by the People's Bank of China or should the amount to be taken abroad exceed the approved limit, no permission shall be given for exit.

(5) Enterprises with overseas Chinese investment, enterprises with foreign investment and Chinese-foreign joint ventures engaged in the processing of gold and silver ornaments with imported gold and silver may not sell their products on the domestic market without approval by the People's Bank of China.

[Article 22] In accordance with Article 30 of the Regulations, where there is a need to cite or give appropriate material rewards to units or individuals who have made contributions, the local branch of the People's Bank of China shall discuss and decide on the matter with the department concerned in accordance with the extent of contribution.

To those units or individuals to be rewarded according to subpara. (1), the local branch of the People's Bank of China or the competent department shall give rewards or a proper portion of the income from the recovery of gold and silver shall be set aside as a bonus for them; those units or individuals to be rewarded according to subpara. (2) may be rewarded with a bonus by drawing up to 10 per cent (not exceeding RMB 1,000) from the value of gold and silver confiscated or collected; those units or individuals to be rewarded according to subpara. (3) may be rewarded with a bonus by drawing no more than 20 per cent (not exceeding RMB 2,000) from the proceeds of gold and silver conversion; those units or individuals to be rewarded according to subpara. (4) shall be rewarded by the recipient departments at their discretion. 

[Article 23] These Rules and Regulations shall be promulgated and enforced by the People's Bank of China.  The right to interpret them resides in the People's Bank of China.  


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