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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II WORK DUTIES CHAPTER III APPLICATION, SCREENING, EFFECTIVENESS OF PROJECTS CHAPTER IV EXECUTION, MANAGEMENT AND SUPERVISION OF PROJECTS CHAPTER V MANAGEMENT OF PROJECT FUND CHAPTER VI MANAGEMENT OF MATERIALS OF PROJECTS CHAPTER VII REPORTING SYSTEM FOR PROJECTS CHAPTER VIII AUDIT AND SUPERVISION OF PROJECTS CHAPTER IX TERMINATION OF PROJECTS CHAPTER X SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. These Measures are formulated for the purposes of strengthening the administration of the acceptance of gratuitous aids of foreign governments and international organizations (hereinafter referred to as "aiding party"), effectively utilizing the international aids and promoting the overall harmonious and sustainable development of the economy and society of China. Article 2. The term "aiding parties" as mentioned in these Measures refers to the foreign governments and international organizations which grant gratuitous aids to China. Article 3. The term "gratuitous aids" as mentioned in these Measures refers to the money, technologies, equipment aids and personnel training, which are gratuitously granted to China by foreign governments and international organizations and which are under the administration of the Ministry of Commerce. Article 4. The term "competent organs for the acceptance of aids" refers to the relevant departments of the Central Government and of the State Council, the foreign affairs departments of all national social organizations, as well as the commerce administrative departments of all provinces, autonomous regions and municipalities directly under the Central Government. Article 5. The term "project execution entities" (hereinafter referred to as the project entities) as mentioned in these Measures refers to institutions which directly accept and concretely execute the projects gratuitously aided (hereinafter referred to as the projects). Article 6. These Measures shall apply to the administration of the projects which are gratuitously aided by the aiding parties and which are administered by the Ministry of Commerce. CHAPTER II WORK DUTIES Article 7. The Ministry of Commerce shall administer the aids gratuitously granted to China by the aiding parties. It shall, on behalf of Chinese Government, negotiate with the aiding parties about country plans, signing principled documents, coordinate the relationship with the aiding parties, work out project management measures, supervise the execution of projects and deal with the matters related to the gratuitous aids. Article 8. The competent organs for the acceptance of aids shall, upon authorization of the Ministry of Commerce, guide, coordinate, administer and supervise the project entities, which concretely execute the projects. Article 9. A project entity shall execute the project according to the project agreement and accept the guidance, coordination and supervision of the competent organ for the acceptance of projects so as to ensure the correct utilization of the project fund. CHAPTER III APPLICATION, SCREENING, EFFECTIVENESS OF PROJECTS Article 10. A project applied for shall: (1) conform to the aims of the development of national economy and society of China; (2) conform to the cooperation conditions of the aiding party on the priority fields, technical advantages and fund scale; and (3) have good social benefits and demonstration roles. Article 11. A project entity shall work out a project proposal (in Chinese and a foreign language). After the competent organ for the acceptance of aids has examined and approved the project proposal, it shall file a formal project application with the Ministry of Commerce. Article 12. When the competent organ for the acceptance of aids files a project application with the Ministry of Commerce, it shall submit a plan of the Chinese party on the supporting fund so as to ensure the daily operation fund for the project. Article 13. After the Ministry of Commerce receives project applications, it shall evaluate and screen them according to the principle of openness, fairness and impartiality and shall notify the competent organs for the acceptance of aids of the processing opinions within 30 days. Article 14. Before the Ministry of Commerce and the aiding party enter into a project agreement, the competent organ for the acceptance of aids shall confirm the text of the agreement. Article 15. The project becomes effective as soon as the Ministry of Commerce and the aiding party sign a project agreement. CHAPTER IV EXECUTION, MANAGEMENT AND SUPERVISION OF PROJECTS Article 16. After the Ministry of Commerce and the aiding party sign a project agreement, it shall, by correspondence, notify the competent organ for the acceptance of aids and simultaneously sign with it a document on the project management responsibilities. The competent organ for the acceptance of aids shall sign with the project entity a document on the project management responsibilities. Where necessary, the Ministry of Commerce may sign an annual work plan with the aiding party. Article 17. Where necessary, a leading group and guiding committee may be established to guide, coordinate, administer and supervise the execution of a project. Article 18. A project entity shall establish a project management office according to the project agreement. The project entity shall designate a director for the project management office (hereinafter referred to as the project director), staff necessary personnel, formulate bylaws, clarify work duties and maintain the stability of personnel. Article 19. The project entity shall, according to the project agreement and the annual work plan, carry out the project activities under the guidance of the competent organ for the acceptance of aids. Article 20. During the course of execution of a project, the project activities shall not be changed. If it is really necessary to change them, it shall be subject to the consent of the Ministry of Commerce and of the aiding party. Article 21. During the course of execution of a project, the Ministry of Commerce and the aiding party shall make an interim evaluation and a final evaluation according to the project agreement, the Ministry of Commerce and the competent organ for the acceptance of aids shall aperiodically check the execution progress of the project. CHAPTER V MANAGEMENT OF PROJECT FUND Article 22. The project fund management shall be subject to a level-by-level system and a project director responsibility system. The competent organ for the acceptance of aids shall, upon authorization of the Ministry of Commerce, supervise the utilization of the project fund. The competent organ for the acceptance of aids shall sign a responsibility document with each project entity. Article 23. The competent organ for the acceptance of aids shall help each project entity to put in place the supporting fund which the Chinese party should provide for the project. Article 24. The utilization of the project fund shall conform to the scope and purposes as specified in the project agreement. If it is really necessary to change the purposes of the fund, it shall be subject to the consent of the Ministry of Commerce and of the aiding party. No entity or individual may usurp or misappropriate the project fund, or use it for any purposes such as wage, award and welfare, which are irrelevant to the project activities. Article 25. The project fund includes the aided fund and supporting fund for the project managed by the Chinese party. It shall be totally integrated into the uniform financial calculation and management of the competent organ for the acceptance of aids or project entity. The competent organ for the acceptance of aids or project entity shall establish a sound internal management system, staff full-time and part-time accountants and manage the fund strictly so as to ensure that the fund can be used for the special purpose. Article 26. Each project management office shall, jointly with the financial department of the project entity, formulate measures for the management of the project fund. The person-in-charge of the project entity and the project director shall be responsible for the supervision and use of the project fund of this entity. Article 27. After a project is ended according to the plan, if the aided fund has a balance. The Ministry of Commerce and the aiding part shall negotiate about the purposes of the balance. The competent organ for the acceptance of aids and the project entity shall not use the balance for any other purpose. CHAPTER VI MANAGEMENT OF MATERIALS OF PROJECTS Article 28. The competent organ for the acceptance of aids and the project entity shall, in strict compliance with the project agreement, purchase the materials which the project needs. Article 29. For the materials purchased under the project agreement or for the materials donated, the project entity shall, via the competent organ for the acceptance of aids, file a tax exemption application with the Ministry of Commerce. After the Ministry of Commerce examines and approves the said application, it shall issue to the project entity a certificate for the exemption of duties on the imported materials and for the exemption of the value added tax on the domestic materials. The project entity shall go through the formalities for the exemption of the materials for the project. Article 30. During the course of execution of a project, the project entity shall manage the aided materials through account books and shall register the materials and equipment purchased or donated. It shall use them in strict compliance with the project agreement. No entity or individual may use them for any other purposes. After the end of a project, the competent organ for the acceptance of aids shall urge the project entity to timely go through the formalities for the handover and register of assets and integrate the aided assets into the scope of assets of this department or entity for uniform management. CHAPTER VII REPORTING SYSTEM FOR PROJECTS Article 31. During the course of execution of a project, the project entity shall regularly report the progress of the project to the Ministry of Commerce and the competent organ for the acceptance of aids. In the case of any serious problem or emergency, the competent organ for the acceptance of aids shall report it to the Ministry of Commerce without delay. Article 32. After the end of a project, the project entity shall submit to the Ministry of Commerce, the aiding party and the competent organ for the acceptance of aids each a project completion report. Article 33. The competent organ for the acceptance of aids and the project entity shall, under the stipulations of the project agreement, popularize the project experiences and achievements and pay attention to the sustainable development of the project. CHAPTER VIII AUDIT AND SUPERVISION OF PROJECTS Article 34. Each competent organ for the acceptance of aids shall intensify supervision and inspection over the incomes and expenses of the projects as well as over the financial management, and shall establish a sound supervision system for the projects. Article 35. In accordance with the Audit Law of the People's Republic of China, the audit organs shall audit the incomes, expenses and benefits of projects. All competent organs for the acceptance of aids and all project entities shall accept the audit in pursuance of law and cooperate with the audit organs during the course of audit. Article 36. For a project which the aiding party requires the Chinese party to provide an audit report upon notarization, the National Audit Office or its authorized or entrusted audit institution shall, according to the internationally acknowledged audit standards, conduct an audit and issue an audit report upon notarization. CHAPTER IX TERMINATION OF PROJECTS Article 37. The project activities shall terminate according to the project agreement. Article 38. Where a project entity is under any of the following circumstances, the Ministry of Commerce shall, upon negotiation with the aiding party, notify the competent organ for the acceptance of aids to terminate the project: (1) Seriously breaking the project agreement; (2) Losing the capability to execute the project; or (3) Obtaining the project fund by frauds or misappropriating the project fund. CHAPTER X SUPPLEMENTARY PROVISIONS Article 39. Any violation of law or discipline committed during the process of execution of a project shall be investigated and punished by the relevant departments. Article 40. Each competent organ for the acceptance of aids shall, in accordance with these Measures and by taking into consideration the actual circumstances of this organ or this area, formulate detailed implementation rules. Article 41. The power to interpret these Measures shall remain with the Ministry of Commerce. Article 42. These Measures shall become effective as of the date of promulgation. The measures and annexes promulgated therebefore shall be abolished simultaneously. |
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