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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II SCOPE OF EXPENDITURE CHAPTER III BUDGET ADMINISTRATION CHAPTER IV FINANCIAL ADMINISTRATION CHAPTER V SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. In order to regulate and strengthen the budget administration of the use fees and payments for mine prospecting and exploiting rights (hereinafter referred to two fees), the present Measures are enacted in accordance with the Measures for the Administration of the Use Fees and Payments for Mine Prospecting and Exploiting Rights (No.74 [1999] of the Ministry of Finance), and the relevant provisions on budget administration. Article 2. The present Measures shall be observed in the administration of use of the two fees that belong to the central government and that are collected by the Ministry of Land and Resources (MLR). Article 3. The income and expenditure of the two fees shall be managed on a separate basis, and the principle of "determining the expenditure according to the income, using the special fund for special purposes, controlling by budget, and no making up for overspending" shall be adhered to. Article 4. Administration by budget and final accounting shall be applied to the two fees. CHAPTER II SCOPE OF EXPENDITURE Article 5. The income of the two fees shall be exclusively used for the exploration, protection and administration of mineral resources. Article 6. Expenditure for exploration of mineral resources refers to the expenditure incurred in the exploration of mineral resources that is carried out to satisfy the needs of the state for strategic and short mineral resources, and that must be carried out before the state assigns the mine prospecting and exploiting rights. Article 7. Expenditure for protection of mineral resources refers to the various kinds of expenditures incurred in maintaining the normal order of exploration and exploiting of mineral resources, and in the rational development and utilization of mineral resources, including: work expenses for planning on mineral resources and mining areas, expenses for formulation and examination of the schemes on utilization of mineral resources, expenses for settlement of disputes over mine prospecting and exploiting rights, expenses for treatment, development and utilization of gangues, and for exploration and prevention of secondary geological disasters caused by mining activities, and the fund for the projects of protection and treatment of geological environment of mines, and those of protection of geological relics. Article 8. Expenditure for administration refers to the administrative expenditure and business expenditure incurred in the supervision of the examination and approval, registration, assignment, and transfer of mine prospecting and exploiting rights, including: fees for examination and approval, and for registration of the areas to be explored, fees for purchase or printing of the special documents, instruments, and statements, fees for supervision and administration of the exploration and exploiting of mineral resources, fees for policy investigation and research for the administration of mineral resources, fees for publicity and business training, fees for examining the reserves of resources, fees for management of the information system of exploration, development, resources, and fees for evaluation, announcement, consultation, the commissions of intermediary agencies, venue rents, and other necessary costs, for the assignment of mine prospecting and exploiting rights through quotation, bidding, and auction. Article 9. The specific expenditure for projects of exploration and protection of mineral resources shall be paid from the total costs and expenses of such projects. CHAPTER III BUDGET ADMINISTRATION Article 10. With respect to the annual income budget of the mine prospecting and exploiting rights, the department of registration of mine prospecting and exploiting rights under this Ministry shall, prior to August 31 of each year, draw up and submit the proposals of income budget of the two fees of the next year to the financial department under this Ministry. Article 11. The methods of budget administration of "project management, specified use of special fund, and separate accounting" shall be applied with respect to the expenditure budget of the two fees used in the projects of exploration and protection of mineral resources. A project undertaking entity shall use the special fund for special purposes in strict accordance with the approved project budget and the prescribed scope of income and expenditure. And after a project is completed, the entity shall handle the examination before acceptance and the settlement in good time. Article 12. The budget administration methods of "controlled budget and no supplementing for overspending" shall be applied with respect to the expenditure budget for the two fees used in administration. In terms of fund use, expenditure shall be strictly limited to the budgetary amount and expenditure scope approved, no expenditure beyond the scope and standard shall be made, and the donation and welfare expenditure is especially not allowed. Article 13. The annual expenditure budget proposals of the projects of exploration and protection of mineral resources shall be drawn up by the relevant functional departments of this Ministry and the public institutions directly under this Ministry pursuant to the relevant requirements of the Ministry of Finance on the formulation of annual budget and the sequence of the projects in respect of their significance. The methods and format of formulation of project budget shall be set forth separately. The budget proposals for administration expenditure shall be formulated and submitted by the relevant functional departments under this Ministry pursuant to the Interim Measures of the Ministry of Land and Resources on the Administration of Special Fund (No.67 [2001] of MLR) and the requirements of the Ministry of Finance on the formulation of annual budget. Article 14. A project undertaking entity shall draw up the proposals of project expenditure budget according to the actual needs of the work and on the basis of adequate investigation, search and demonstration. The entity shall submit the project proposal and approved work design when submitting the suggestions for project expenditure budget, and at the same time, it may enclose the project feasibility study report and the project construction scheme. A project proposal shall include the following contents: (1) Background and basis for initiating the project, and the tasks and objectives; (2) Analysis of economic and social benefits; (3) Project budget and detailed budgetary expenditure; (4) Work schedule; and (5) Project executing entity and assisting entity (entities). Article 15. This Ministry shall organize experts to examine, through assessment or discussion, the suggestions for project expenditure budget, and select the superior projects of exploration and protection of mineral resources. The relevant functional departments under this Ministry shall be in charge of the examination of the filing of projects, of the technical demonstration, etc,; the financial department under this Ministry shall be in charge of the examination of the fund budget of the projects. The projects passing the examination will be put into the project database, be classified, arranged and put in order. Article 16. The financial department under this Ministry shall, according to the collection of the two fees, and in combination of the project applications, the actual needs of administration of the next year, and the sequence of the projects, examine, gather, and draw up the annual income and expenditure budget draft of the two fees, submit such draft to the ministry leader for approval, and then bring it into the department budget, and submit it to the Ministry of Finance for examination and approval according to the prescribed time. Article 17. This Ministry will, according to the department budget examined and approved by the Ministry of Finance, make known to the lower levels the expenditure budget of the two fees within the prescribed time limit. Article 18. The expenditure budget of a project shall be made known to the project undertaking entity through official reply in accordance with the relevant provisions of the financial department on project budget administration, and the relevant functional department under this Ministry shall sign the power of attorney for the project tasks with the project undertaking entity. See appendix 2 (omitted) for the format of the power of attorney for project tasks. Article 19. Once the expenditure budget has been approved, no entity or individual may make any adjustment to it at will; if it is really needed to make any adjustment, such adjustment shall be submitted for approval pursuant to the procedures of budget administration. CHAPTER IV FINANCIAL ADMINISTRATION Article 20. The relevant functional department under this Ministry shall organize the implementation of a project, the financial department under this Ministry shall allocate the fund pursuant to the relevant provisions of the Ministry of Finance on the allocation of fund, and shall supervise the use of such fund. Article 21. A project undertaking entity shall rationally arrange the use of the project fund in strict accordance with the project expenditure budget approved and distributed to it. After the project is completed, the entity shall handle the examination before acceptance and the settlement in good time. If there is any assisting entity involved in the project, the assisting entity, its tasks, fund quota, and account shall be specified in the project design document, and the fund shall be transferred to the assisting entity on the basis thereof. If the assisting entity is an entity not included in the administrative system of this Ministry, it shall be determined through task bidding as a general principle, and then may it sign the task contract. Article 22. The residual fund of a project which has not been completed in one year may be used in the next year. The residual fund of a completed project shall be distributed in strict accordance with the relevant financial rules. However, the residual fund resulted from the adjustment of the project design or the failure to carry out the work according to the project design shall be returned through the original channel; with respect to a project that has not been completed as scheduled due to special circumstances, the period for completion may be extended for one year at the most. If that project cannot be completed after one year, this Ministry will terminate it, and investigate the liabilities for breach of agreement pursuant to the relevant clauses in the power of attorney for the project tasks. Article 23. A project undertaking entity shall, pursuant to the requirements of pre-examination, ongoing monitoring, and post-inspection, establish and improve the supervision and inspection rules for the use of the two fees, and carry out inspections of the use of two fees regularly or irregularly. This Ministry shall make key inspections on the use of two fees. The acts of withholding, embezzling, and expending the two fees directly from the cash income shall be dealt with pursuant to the relevant laws and regulations. CHAPTER V SUPPLEMENTARY PROVISIONS Article 24. The power to interpret the present Measures shall remain with the financial department under MLR. Article 25. The present Measures shall take effect as of the date of promulgation. |
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