Laws of the People's Republic of China

    Article 1  These Provisions are formulated for the purpose of safeguarding
the rights and interests of the State in aviation, ensuring safety in air
transport and promoting the development of civil air transport.

    Article 2  These Provisions shall apply to the non-scheduled flights of
Chinese and foreign aircraft engaged in carrying passengers, baggage, cargoes
and mail within the territorial spheres of the People's Republic of China and
between the People's Republic of China and foreign countries.

    Article 3  The term "non-scheduled flights" referred to in these
Provisions denotes civil air transport flight other than scheduled air
services.

    Article 4  The operation of non-scheduled flights shall be subject to the
submission on an application to the Civil Aviation Administration of China
(CAAC) for its approval. The application and approval procedures shall be
formulated by the CAAC.

    Article 5  The operation of non-scheduled flights shall abide by the
transport regulations formulated by the CAAC and may not affect the normal
operations of scheduled flights.

    Article 6  Air crew and aircraft engaged in non-scheduled flights shall
meet the criteria or be up to the technical standards stipulated by the CAAC
and possess and bear a Crew Licence, the Aircraft Registration Certificate,
the Aircraft Airworthiness Certificate and other certificates and documents
as required to be on board in accordance with the relevant provisions.

    Article 7  The operation of non-scheduled flights for commercial
transportation into or out of the territorial spheres of the People's
Republic of China by a foreign civil air carrier shall be handled in
accordance with the relevant provisions in the air transport agreement entered
into by the Government of the People's Republic of China and the Government
of the foreign country to which the said carrier belongs.

    Article 8  No foreign civil air carrier may operate non-scheduled flights
for commercial transportation between any two points within the territorial
spheres of the People's Republic of China.

    Article 9  To remunerated non-scheduled flights for commercial
transportation operated by foreign civil air carrier, the Chinese authorities
shall have the right to levy compensation for the grant of air traffic right.

    Article 10  Chinese civil air carriers shall have the priority to operate
non-scheduled flights originating in the People's Republic of China and
destined for foreign countries, for carrying passengers, baggage, cargoes and
mail.

    Article 11  The tariffs and the terms and conditions as well as the
measures for the administration for non-scheduled flights in civil air
transport shall be formulated by the CAAC in conjunction with the State
Administration of Commodity Prices.

    Article 12  Unless otherwise specially approved by the CAAC, a foreign
aircraft engaged in non-remunerated non-scheduled flights may only land at
designated point within the territorial spheres of the People's Republic of
China and may not carry out of the territorial spheres of the People's
Republic of China any people or cargoes other than those the aircraft has
originally carried on board, nor may it leave within the territorial spheres
of the People's Republic of China any people and cargoes it has originally
carried on board.

    Article 13  Aircraft engaged in non-scheduled flights for international
transport shall complete such procedures as border inspection, Customs
clearance, quarantine and security examination and pay the fees in accordance
with the relevant provisions.

    Article 14  Foreign aircraft engaged in non-scheduled flights and their
crew members, and the passengers, baggage, cargoes and mail that they carry on
board, whether entering, or leaving, or remaining within the territorial
spheres of the People's Republic of China, shall abide by the relevant laws,
regulations and rules of the People's Republic of China and pay various fees
in accordance with relevant provisions.

    Article 15  Operators of foreign aircraft engaged in non-scheduled flights
must cover liability insurance against damage that the aircraft may incur to
the third party on the ground while flying within the territorial spheres of
the People's Republic of China and they must also cover the statutory
liability insurance if they operate non-scheduled flights for carrying
passengers, baggage, cargoes and mail.

    Article 16  The CAAC shall have the power to impose such penalties upon
those units and individuals that violate these Provisions, as warning, fine,
compulsory suspension of flights or revocation of relevant certificates. If
the violation constitutes a crime, the judicial organs shall investigate the
criminal liability of those responsible.

    Article 17  The CAAC shall be responsible for the interpretation of these
Provisions.

    Article 18  These Provisions shall become effective as of the date of
promulgation.