IV. The Ministry of Commerce ( the “MOC”) Issued the Provisions on Procedures for Commerce Administrative Penalty (the “Provisions”)

On 12^th May, 2012, MOC issued the Provisions to regulate the detail procedures of administrative penalty implemented by commerce administration, particularly the hearing procedure. According to the Provisions, in the case a citizen is to be fined no more than RMB 50 or other organizations to be fined no more than RMB 1000, and there are conclusive facts of violation and legal basis, the enforcement officials can apply the summary procedure to make the decision of administration penalty on site. However, in the case a citizen is to be fined no less than RMB 5000 or a legal person or other organizations to be fined no less than RMB50, 000, and in the event that administrative penalty involves suspense, cancellation and revocation of license or qualification certificates, the party concerned shall be notified his right to apply for hearing and details when a Prior Notice on Commerce Administrative Penalty is issued to the him.