Article 13 When adopting the cost method to appraise the assets invested by foreign businessmen, one should determine the reassessed value of the assets concerned by subtracting the accumulated depreciation amount based on the cost of replacement from the cost of replacement of brand- new assets of the same kind, taking into account changes in the production capability and percentage of newness. Or one can get the reassessed value according to the current condition and life expectancy of the assets appraised, taking into account changes in its functions and re-determining its percentage of newness.

Article 14 When adopting the income method to the appraisal of the assets invested by foreign businessmen, one should calculate the current value of the assets to be appraised according to the reasonable expected profitability of the assets and appropriate discount rate.

Article 15 The appraisal of assets invested by foreign businessmen shall be carried out according to the following procedures:

(1) The applicant submits an application for the appraisal;

(2) The appraisal organ makes an initial examination of the data and accepts the application;

(3) The appraisal personnel draw up a plan for the appraisal;

(4) The certificates and data provided by the applicant shall be examined and checked, and a survey shall be made of the markets as home and abroad.

(5) On-the-spot examination;

(6) A suitable appraisal method is selected;

(7) An appraisal certificate is issued.

Article 16 In applying for an appraisal of assets invested by foreign businessmen, the applicant should fill in an application form with the outline of the object, target, and requests of the appraisal. At the same time appropriate documents and data on inventory of the property, customs declaration, contract, invoices, insurance policy, maintenance expenses, and equipment and technology should be provided.

Article 17 Upon the receipt of an application for the appraisal of assets invested by foreign businessmen, local commodity inspection bureaus and other appraisal organs shall first of all see that whether the application form filled out by the applicant and other related data submitted are complete and then demand the temporary sealing of the assets that should keep their current conditions for the appraisal.

Article 18 The appraisal personnel should carry out the operation of appraisal according to the appraisal procedures. When conducting on-the- spot examination and appraisal, they must check the items for appraisal one by one. If necessary, they can ask related persons of the assets for supplementary explanation. After concluding the appraisal, they should issue an appraisal certificate in time.

Article 19 Should there be any objections to the results of the appraisals by the applicants, an application for re-appraisal can be made to the commodity inspection bureau that produces the result, or to a higher-level commodity inspection bureau, or even to the State Administration of Commodity Inspection. The specific procedure is defined in the "Re-Inspection Measures for Import and Export Commodities."

Chapter IV Legal Liability

Article 20 Those who forge or falsify certificates issued by the commodity inspection bureau or other appraisal organs shall be punished according to the related provisions of the "Regulations for the Implementation of the Commodity Inspection Law."

Article 21 If the personnel for appraisal produce an untrue or false result due to dereliction of duty or for personal gains, they shall be punished according to the related provisions of the "Regulations for the Implementation of the Commodity Inspection Law."

Article 22 The appraisal personnel shall not provide a third party with related circumstances and data of the appraisals (except otherwise stipulated by law). Those who fail to observe the above provision and bring harmful result shall be punished according to the seriousness of the case.

Article 23 Local accounting firms or registered accountants shall be punished by the finance department in charge according to related provisions of the "Registered Accountants Law of the People's Republic of China" upon their violations to Article 7 (Part 2) of these measures.

Article 24 Should a party concerned refuse to accept a punishment meted out by the commodity inspection bureau or finance department, an application for reconsideration can be made to the organ that imposes the punishment or to its higher authorities within 30 days after the receipt of the punishment notice. Should the reconsidered decision be again refused, the case may be brought up to the people's court within 30 days after the receipt of the reconsidered decision.

Upon an refusal to observe the punishment without an application for reconsideration be made or a case be brought to the court within the time limit, the commodity inspection bureau or finance department that imposes the punishment shall apply to the people's court for compulsory execution.

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