Taxpayers selling taxable consumer goods and self-producing taxableconsumer goods for their own use, except otherwise as determined by theState, shall report and pay tax to the local competent tax authoritiesgoverning the taxpayers.

For taxable consumer goods sub-contracted for processing, theConsumption Tax due shall be paid to the local competent tax authoritieswhere the sub-contractors are located.

For imported taxable consumer goods, the tax shall be reported andpaid by the importers or their agents to the customs offices where theimports are declared.Article 14

The Consumption Tax assessable period shall be one day, three days,five days, ten days, fifteen days or one month. The actual assessableperiods of the taxpayers shall be separately determined by the competenttax authorities according to the magnitude of the tax payable of thetaxpayers; tax that cannot be assessed in regular periods can be assessedon a transaction-by-transaction basis.

Taxpayers that adopt one month as an assessable period shall reportand pay tax within ten days following the end of the period. If anassessable period of one day, three days, five days, ten days or fifteendays is adopted, the tax shall be prepaid within five days following theend of the period, and a monthly return shall be filed with any balance oftax due settled within ten days from the first day of the following month.Article 15

Taxpayers importing taxable consumer goods shall pay tax within sevendays after the completion and issuance of the tax payment certificates bythe customs office.Article 16

The collection and administration of Consumption Tax shall beconducted in accordance with the relevant regulations of the (Law of thePeople's Republic of China on Tax Collection an Administration) and theseRegulations.Article 17

The collection of Consumption Tax from foreign investment enterprisesand foreign enterprises shall be conducted in accordance with theresolutions of the Standing Committee of the National People's Congress.Article 18

The Ministry of Finance shall be responsible for the interpretationof these Regulations and for the formulation of the Detailed Rules andRegulations for the Implementation of these Regulations.Article 19

These Regulations shall come into effect from January 1, 1994. Therelevant regulations of the State Council regarding the collection ofConsumption Tax prior to the promulgation of these Regulations shall berepealed on the same date.

CONSUMPTION TAXABLE ITEMS AND TAX RATES (TAX AMOUNTS) TABLE

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Taxable Items Scope of charge Tax Unit Tax Rate/Amount

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I. Tobacco

1. Grade A cigarettes Including Imported 45%

cigarettes

2. Grade B cigarettes 40%

3. Cigars 40%

4. Cut tobacco 30%

II. Alcoholic drinks and

alcohol

1. White spirits made from

cereal 25%

2. White spirits made from 15%

potatoes

3. Yellow spirits ton 240 yuan

4. Beer ton 220 yuan

5. Other alcoholic drinks 10%

6. Alcohol 5%

III. Cosmetics Including cosmetics sets 30%

IV. Skin-care and hair-care

products 17%

V. Precious jewelry and Including all kinds of

precious jade and gold, silver, jewelry, and 10%

stones precious stone ornaments

VI. Firecrackers and fire-works 15%

VII. Gasoline litre 0.2 yuan

VIII. Diesel oil litre 0.1 yuan

IX. Motor vehicle tyres 10%

X. Motorcycles

XI. Motor cars 8%

1. Those with a cylinder 8% capacity (i. e. emission capacity) of more than 2200ml (including 2200ml)

Those with a cylinder 5% capacity of between 1000-2200ml (including 1000ml)

Those with a cylinder 3% capacity of less than 1000ml

2. Cross-country vehicles

(four-wheel drive)

Those with a cylinder 5% capacity of more than 2400ml (including 2400ml)

Those with a cylinder 3% capacity of less than 2400ml

3. Minibuses and vans less than 22 seats

Those with a cylinder capacity of more than 5%

2000ml (including 2000ml)

Those with a cylinder 3% capacity of less than 2000ml

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