Laws of the People's Republic of China

(Promulgated June 15, 1983 by the State Council.)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II CONTROL OF GOLD AND SILVER PURCHASES

CHAPTER III CONTROL OF ALLOCATED SALES OF GOLD AND SILVER

CHAPTER IV CONTROL OF MANAGING UNITS AND INDIVIDUAL SILVERSMITHS

CHAPTER V CONTROL OF GOLD AND SILVER TAKEN INTO OR OUT OF THE

PEOPLE'S REPUBLIC OF CHINA

CHAPTER VI AWARDS AND PENALTIES

CHAPTER VII APPENDIX

CHAPTER I GENERAL PROVISIONS

   Article 1. These Regulations are formulated to strengthen control over gold and silver, to guarantee the State's gold and silver requirements for its economic development and to outlaw gold and silver smuggling and speculation and profiteering activities.

   Article 2. Reference to gold and silver in these Regulations includes:

(1) gold and silver extracted during the mining of ore deposits and gold and silver as a by-product of smelting;

(2) gold and silver bars, bullion, ingots and powder;

(3) gold and silver coins;

(4) gold and silver articles and gold or silver-based alloy articles;

(5) gold and silver contained in chemical products;

(6) leftover bits and pieces of gold and silver and gold and silver contained in waste residue, waste liquid and waste solids.

Platinum (white gold) shall be controlled in accordance with the relevant regulations of the People's Republic of China.

Cultural relics containing gold and silver shall be controlled in accordance with the Law of the People's Republic of China Governing Cultural Relics.

   Article 3. The State shall pursue a policy of unified control, monopoly purchase and distribution of gold and silver.

The total income and expenditure of gold and silver of State organs, the armed forces, organizations, schools, State enterprises, institutions and collective urban and rural economic organizations (hereinafter referred to as domestic units) shall be incorporated into the State plan for the receipt and expenditure of gold and silver.

   Article 4. The People's Bank of China shall be the State organ responsible for the control of gold and silver in the People's Republic of China.

The People's Bank of China shall be responsible for the control of the State's gold and silver reserves; responsible for the purchase and sale of gold and silver; work in conjunction with the authority responsible for commodity prices to formulate and administer a purchase and sales price for gold and silver; work in conjunction with the competent department to examine and approve the operations (including processing and sales) of units (hereinafter referred to as managing units) dealing in gold and silver products, chemical products containing gold and silver, the recovery of gold and silver from residual liquid and solid wastes; control and inspect the gold and silver market and supervise the implementation of these Regulations.

   Article 5. All gold and silver held by domestic units, with the exception of raw materials, equipment, household utensils and mementos which the People's Bank of China has permitted to be kept, must be sold to the People's Bank of China. No gold and silver may be personally disposed of or kept without authorization.

   Article 6. All gold and silver legally gained by individuals shall come under the protection of the State.

   Article 7. No unit or individual within the territory of the People's Republic of China shall use gold and silver as a pricing unit. Private trading of gold and silver and the use of gold and silver as loan or as mortgage property shall be forbidden.

CHAPTER II CONTROL OF GOLD AND SILVER PURCHASES

   Article 8. All gold and silver purchases shall be transacted through the People's Bank of China. No unit or individual shall purchase gold and silver unless authorised or entrusted to do so by the People's Bank of China.

   Article 9. All gold and silver extracted in the course of operations (including the production of ore deposits and as by-products of smelting) by industrial enterprises, rural commune production units, the armed forces and individuals shall be sold to the People's Bank of China. No gold and silver shall be personally sold, exchanged or kept.

All the above-mentioned production units shall, in accordance with the relevant regulations, strengthen control over finished and semi-finished gold and silver articles in their production process. They may not sell or otherwise dispose of such articles themselves.

   Article 10. The State shall encourage managing units and units that utilise gold and silver to recover gold and silver from associated mineral ores and from residual liquid and solid wastes.

All the gold and silver recovered by the above-mentioned units must be sold to the People's Bank of China. Such units may not sell, exchange or keep any of the said gold and silver. Units that utilise gold and silver may, however, with the permission of the People's Bank of China, reuse the recovered gold and silver.

   Article 11. All gold and silver refined by domestic units as a by-product from imported gold, silver or ore materials, with the exception of gold and silver kept with the permission of the People's Bank of China or that for re-export following processing, must be sold to the People's Bank of China. Such units may not sell, exchange or keep any of the said gold and silver.

   Article 12. All gold and silver sold by individuals must be sold to the People's Bank of China.

   Article 13. All excavated gold and silver without legal owners shall become State property. No unit or individual shall melt down, destroy by melting or burning or take possession of the said gold or silver.

All excavated gold and silver without legal owners found by a unit or individual shall be appraised by the local cultural administration department and, with the exception of any article valued as an historic or cultural relic which shall be handled in accordance with the Law of the People's Republic of China Governing Cultural Relics, handed over to the People's Bank of China, and following evaluation the sum shall be paid into the Treasury.

   Article 14. All gold and silver confiscated by State organizations in the areas of public security, the judiciary, customs, industrial and commercial administration, taxation office, and other authorities shall be sold to the People's Bank of China. It may not be disposed of by these organizations or replaced by any other material object. In accordance with the relevant regulations, the sale price of the confiscated gold and silver shall be paid into the Treasury.

CHAPTER III CONTROL OF ALLOCATED SALES OF GOLD AND SILVER

   Article 15. All units that need to use gold and silver shall, in accordance with regulation procedures, file an application with the People's Bank of China stating the planned use of the gold or silver and shall be supplied upon its approval.

The People's Bank of China shall supply the gold and silver in accordance with the approved plan and shall not reduce or delay the supply at will.

   Article 16. Wholly foreign owned enterprises, Sino-foreign joint ventures and foreign investors operating within the territory of the People's Republic of China who purchase gold and silver products or process goods containing gold and silver and thus wish to acquire gold and silver supplies in China shall make an application according to the specified procedures, to be submitted to the People's Bank of China for approval and fulfilment of the request.

   Article 17. All units using gold and silver shall establish a utilization system whereby the amount used for a particular item is strictly controlled and the surplus returned. Possession of raw gold and silver materials (including semi-finished products) shall not be transferred, nor shall the said materials be used for any other purpose without the permission of the People's Bank of China.

   Article 18. The People's Bank of China shall, within the scope of these Regulations, have the right to supervise and examine all units utilising gold and silver. The said units shall provide the People's Bank of China with accurate information concerning operations and their usage of gold and silver.

CHAPTER IV CONTROL OF MANAGING UNITS AND INDIVIDUAL SILVERSMITHS

   Article 19. All units that have applied to deal in (including processing and sales) gold and silver products, chemical products containing gold and silver and gold and silver recovered from residual liquid and solid wastes shall, in accordance with the relevant regulations and procedures for examination and approval set by the People's Republic of China, be investigated and approved by the People's Bank of China and the relevant competent departments. Operations may be begun following registration with the State Administration for Industry and Commerce and the issuing of a business licence.

   Article 20. Managing units shall operate their gold and silver business within its ratified scope. No unauthorised changes shall be made to the scope of operations, nor shall gold and silver be embezzled, misappropriated or purchased illegally in the course of operations.

   Article 21. The casting and issuing of gold and silver-based commemorative coins shall be handled by the People's Bank of China. No other units shall cast, copy or issue such items.

The export of gold and silver-based commemorative badges (plaques) shall be handled separately by the People's Bank of China and the Ministry of Foreign Economic Relations and Trade.

   Article 22. Commission shops and second-hand shops shall not purchase or sell gold and silver articles and equipment. Jewellers may purchase for export jewel ornaments inlaid with gold and silver, but shall not purchase or sell gold and silver articles and materials. The People's Bank of China is responsible for the purchase and supply for the export trade of gold and silver products.

   Article 23. Individual silversmiths in the borderland minority nationality regions and in the coastal areas where relatives of overseas Chinese live in relatively concentrated communities may, with the approval of the People's Bank of China at county level or above and the State Administration for Industry and Commerce, engage in the making and repairing of gold and silver articles for individuals, but shall not purchase and sell gold and silver articles.

   Article 24. The State shall permit individuals to mail gold and silver ornaments in accordance with specific control methods formulated by People's Bank of China and the Ministry of Posts and Telecommunications.

CHAPTER V CONTROL OF GOLD AND SILVER TAKEN INTO OR OUT OF THE PEOPLE'S REPUBLIC OF CHINA

   Article 25. No restriction shall be imposed on the amount of gold and silver brought into the People's Republic of China, but declaration and registration must be made to the Customs authorities of the People's Republic of China upon entry.

   Article 26. Inspection and clearance by the People's Republic of China Customs of gold and silver taken or retaken abroad shall be made in accordance with the amount shown on the certificate issued by the People's Bank of China or the original declaration and registration form made on entry. All gold and silver without a covering certificate or in excess of the amount declared and registered upon entry shall not be allowed to be taken out of the country.

   Article 27. Gold and silver ornaments (including gold and silver inlaid work, handicraft articles, household utensils etc.) taken out of the People's Republic of China by tourists who have purchased the said article in the People's Republic of China shall be inspected and cleared by the People's Republic of China Customs upon the showing of a "Special Receipt" issued by a Chinese unit dealing in gold and silver articles. If a "Special Receipt" cannot be produced the article shall not be allowed to be taken out of the country.

   Article 28. When Chinese citizens, foreign nationals or Stateless persons residing in the People's Republic of China wish to leave the People's Republic of China to live permanently abroad the maximum amount per person of gold and silver which may be taken out of the People's Republic of China is:

gold ornaments, 1 liang (31.25 grams)

silver ornaments, 10 liang (312.50 grams)

silver utensils, 20 liang (625 grams)

An inspection shall be made by the People's Republic of China Customs and clearance given only to amounts that conform to regulations.

   Article 29. There shall be no limit placed on the amount of gold and silver imported as raw materials for production by wholly foreign owned enterprises and Sino-foreign joint ventures. Products for export which contain a relatively high percentage of gold and silver must first be examined and approved by the People's Bank of China. Exit clearance shall not be given without the People's Bank of China's ratification or should the amount exceed the approved export quantity.

CHAPTER VI AWARDS AND PENALTIES

   Article 30. Units or individuals who make the following contributions shall be cited or given appropriate material rewards by the State:

(1) those who conscientiously carry out State policies and decrees in relation to gold and silver and make a marked contribution to the recovery or control of gold and silver;

(2) those who contribute prominently towards the protection of the State's gold and silver reserves and the struggle against smuggling, speculation, profiteering and other illegal activities;

(3) those who make contributions to the State by immediately declaring or handing in excavated gold and silver without a legal owner;

(4) those who donate a personal collection of gold and silver to the State.

   Article 31. Violations of these Regulations in the following ways shall, in accordance with the severity of the action, bring penalties imposed by the People's Bank of China, the State Administration for Industry and Commerce and Customs authorities within the limits of each body's authority.

(1) In relation to violations of Articles 8, 9, 10 and 11 of these Regulations involving the unauthorised purchase, sale, exchange or possession of gold and silver, the People's Bank of China or the State Administration for Industry and Commerce may force a purchase or purchase the gold and silver at a devalued price. Should the case be serious the State Administration for Industry and Commerce may also impose a fine or simply confiscate the gold and silver.

In addition, the State Administration for Industry and Commerce may withdraw the business licence of any party who violates Article 8, 9, 10 or 11 of these Regulations.

(2) In relation to violations of Article 13 of these Regulations involving the unauthorised melting down, destruction by melting or burning or the keeping of excavated gold and silver without a legal owner, the People's Bank of China may recover the material object or the State Administration for Industry and Commerce may impose a fine.

(3) In relation to violations of Article 17 of these Regulations, involving unauthorised changes to the utilisation of or the transferral of raw gold and silver materials, the People's Bank of China may issue a warning or recover the gold and silver already sold. Should the case be serious a fine may be imposed or supply may be discontinued.

(4) In relation to violations of Articles 19, 20, 21, 22 and 23 of these Regulations, involving unauthorised business operations, unauthorised changes to the scope of operations, the embezzlement, misappropriation or illegal purchasing of gold and silver, the State Administration for Industry and Commerce may impose a fine or confiscate the gold and silver. Should the case be serious, the business licence may be withdrawn and demands made for the operation to close down.

(5) In relation to violations of Article 7 of these Regulations, involving the use of gold and silver as a pricing unit or as a loan mortgage property or engaging in the private trade of gold and silver, the People's Bank of China or the State Administration for Industry and Commerce may force a purchase or purchase the gold and silver at a devalued price. Should the case be serious the State Administration for Industry and Commerce may impose a fine or confiscate the gold and silver.

(6) In relation to violations of the provisions of Chapter 5 of these Regulations, involving the control of gold and silver taken into or out of China or as regards any methods used to smuggle gold and silver out of the People's Republic of China, Customs authorities shall deal with cases in accordance with these Regulations and the customs laws and regulations of the People's Republic of China.

(7) In relation to violations of Article 14 of these Regulations, the People's Bank of China shall purchase the said gold and silver. The administrative liability of those directly responsible shall be investigated by the relevant unit.

   Article 32. When violations of these Regulations constitute a criminal offence, the judicial organs shall, in accordance with the law, investigate and determine criminal liability.

CHAPTER VII APPENDIX

   Article 33. Detailed rules for the implementation of these Regulations shall be formulated by the People's Republic of China in conjunction with the relevant departments of the State Council.

   Article 34. Necessary adaptations of regulations for the control of gold and silver in the borderland minority nationality regions shall be formulated in accordance with these Regulations by the relevant county or autonomous region People's Government, in conjunction with the People's Bank of China.

   Article 35. These Regulations shall come into effect from the date of promulgation. All previous procedures for the control of gold and silver formulated by the relevant departments shall cease to apply henceforth.