2. The Pertinent Legislative and Financial Measures and the Legal Status of the Organizer

Editor’s note: In December 1st, 2005, The Application for Registration of Expo 2010 Shanghai was approved by the 138th General Assembly of Bureau International Expositions. After its approval, The Application for Registration has attracted extensive attention from all over the world. The Application for Registration is the legal document on the complete implementation program of Expo 2010 Shanghai China, and also serves as the fundamental guideline for the Expo preparation. Therefore, the whole preparation work of the Expo will be the active implementation  process on the basis of the Application.for Registration In order to make it more convenient for all sorts of people home and abroad to understand the Application for Registration comprehensively, we hereby publish the abstracts of the Application for Registration on the official website of Expo 2010. The following is the “Application for Registration of Expo 2010 Shanghai 

Editor’s note: In December 1st, 2005, The Application for Registration of Expo 2010 Shanghai was approved by the 138th General Assembly of Bureau International Expositions. After its approval, The Application for Registration has attracted extensive attention from all over the world. The Application for Registration is the legal document on the complete implementation program of Expo 2010 Shanghai China, and also serves as the fundamental guideline for the Expo preparation. Therefore, the whole preparation work of the Expo will be the active implementation  process on the basis of the Application.for Registration In order to make it more convenient for all sorts of people home and abroad to understand the Application for Registration comprehensively, we hereby publish the abstracts of the Application for Registration on the official website of Expo 2010. The following is the “Application for Registration of Expo 2010 Shanghai

2. The Pertinent Legislative and Financial Measures and the Legal Status of the Organizer

Expo.com: The Application for Registration of Expo 2010 Shanghai has attracted extensive attention from all over the world, after its approval on December 1st, 2005 by the 138th representative members’ convention of the Bureau of International Exhibitions. The Application is the legal document on the complete implementation program of Expo 2010 Shanghai China, and also serves as the fundamental outline for the Expo preparation. Therefore, the whole preparation procedure of the Expo will be the active process on the basis of the Application. We here publish the abstracts of the Application for Registration on the official website of Expo 2010, in order to make it more convenient for all sorts of people home and abroad to understand the Application comprehensively. The followings are the “Application for Registration of Expo 2010 Shanghai (Abstract 2)- The Pertinent Legislative and Financial Measures and the Legal Status of the Organizer”.

2.1 Application for Registration and Government Messages of Commitment

The Government of the People’s Republic of China has submitted the formal Application Letter for Registration of the World Exposition Shanghai China 2010 (hereinafter referred to as “Expo 2010 Shanghai China”, “Expo 2010 ” or “the Expo”) to the Bureau of International Exhibitions (hereinafter referred to as the “BIE”), signed by Madame Wu Yi, Vice Premier of the State Council and Chairperson of the Shanghai 2010 World Exposition National Organizing Committee, expressing full support for the application for registration .

Meanwhile, messages of commitment from relevant ministries and commissions under the State Council and the Shanghai Municipal Government have been signed in support of the Expo .

2.2 Financial Plan and Financial Support

The total investment of Expo 2010 with regard to the major construction projects is expected to reach RMB 18 billion[1]. Among the major financing sources for the construction projects, the Central Government and the Shanghai Municipal Government will co-appropriate a fund of RMB 7.15 billion as the direct investment, accounting for 40% of the construction investment;RMB 8 billion Expo 2010 bonds will be issued under the government’s approval, accounting for 44% of the construction investment. The rest RMB 2.85 billion will be financed by other means such as bank loans and project finance.

The total investment in respect of the operation expenditure will reach RMB 10.68 billion, covering site maintenance, major events (opening and closing ceremonies, national days and conferences), promotion and marketing, security including emergency measures, administration, insurance and other special items. The afore-mentioned investment will be covered by the incomes generated from ticket sales, sponsorships, royalties and other finance resources.

Back in the bidding stage, the State Development Planning Commission[2] and the Ministry of Finance of the People’s Republic of China, on behalf of the Chinese Government, have pledged to provide financial support and serve as the final guarantor for Expo 2010.

The Development Planning Commission[3] and the Finance Bureau of Shanghai, on behalf of the Shanghai Municipal Government, have also made a corresponding financial commitment.

The financial support includes:

(1) Pre-payment of all the expenditures prior to receipt of Expo 2010 revenues by the Organizer;

(2) Funding of financial shortfalls, if any, for Expo 2010.

The above-mentioned financial support will ensure the smooth construction of the pavilions and other facilities required for the exposition and the related city infrastructure to support Expo 2010.

2.3 The Organizer’s Legal Status

A complete organizational structure has been put in place by the Central Government to ensure the success of Expo 2010 Shanghai China.

The Shanghai 2010 World Exposition National Organizing Committee (hereinafter referred to as the “National Organizing Committee”) and its Executive Committee are set up as the decision-making body for the Expo. The National Organizing Committee, the leading body for Expo 2010, consists of 24 members from the relevant ministries and departments of the Central Government and the Shanghai Municipal Government. A Vice Premier, appointed by the Central Government, acts as the Chairperson. The main responsibilities of the National Organizing Committee include: to coordinate the drafting and implementation of relative laws, regulations, rules and policies; to coordinate and facilitate the participation in the Expo of various municipalities, provinces and regions and the relevant departments of the Central Government; to facilitate the issuance of the invitation by the Central Government to the governments of various countries and to international organizations to participate in the Expo; to make decisions on major matters during the preparation for and the running of the Expo; and to appoint the Commissioner General of the Exposition representing the Chinese Government. The daily routine of communication and coordination of the National Organizing Committee rests with China Council for the Promotion of International Trade (hereinafter referred to as the “CCPIT”).

The administrative body of the National Organizing Committee, the Executive Committee is composed of a total of 42 members from the relevant departments of the Shanghai Municipal Government. The Executive Committee is headed by a major leader of the Shanghai Municipal Government, as its Director. The main responsibilities of the  Executive Committee are: under the authority of the National Organizing Committee, to execute the decisions of the National Organizing Committee, to report regularly to the National Organizing Committee all problems arising in the preparation process, to guide and coordinate the work of the relevant departments of Shanghai, and to undertake other tasks assigned by the National Organizing Committee.

The Commissioner General of the Exposition is appointed by the National Organizing Committee to represent the Government on all matters in connection with the Exposition, and to conduct communication and liaison with the governments of participating countries and international organizations on important matters according to the rules and regulations of the BIE.

The Bureau of Shanghai World Expo Coordination, established on October 30th, 2003, is the Organizer of the Expo. Under the authority of the National Organizing Committee and the Executive Committee, the Bureau is responsible for the preparation, organization, operation and management of the Exposition, and provides assistance to the Commissioner-General of the Expo. The major responsibilities of the Bureau include: to carry out the routine work for the Executive Committee in decision making and coordination; to undertake the organization and management of the preparation for the Expo; to undertake and coordinate foreign contacts and exchanges in relation to the Expo and to operate the Expo.

Groups of Chief Architects and Chief Designers have also been established under the general structure of the Bureau: the former is in charge of the architectural designs relating to the Expo, while the latter is responsible for the framing of the theme-related exhibition, events and forums strategies of the Expo. The Bureau is staffed with civil servants and other personnel publicly recruited, and will independently assume civil liabilities as a legal person.

In order to facilitate and expedite the work of the Organizer, the Shanghai Municipal Government has already created two entities: The Shanghai Land Holding Corporation and the Shanghai World Expo Group. Both companies are entirely invested by the Shanghai Municipal Government. With the authorization of the government, the Organizer will directly control and supervise these two state-run companies.

Entrusted by the Organizer, the Shanghai World Expo Land Holding Co., Ltd. is to perform the following tasks: raising fund for site development apart from that allocated by the government; relocation of households and institutions found within the Expo site; development of infrastructure on the Expo site as well as supporting facilities within and outside the site; construction of stand-alone pavilions to be rented out to participants and joint pavilions to be offered to developing countries; redevelopment of the site and its after use based on the urban development master plan of the city of Shanghai.

Entrusted by the Organizer, the Shanghai World Expo (Group) Co., Ltd. is to perform the following tasks: raising fund for the Expo 2010 apart from that allocated by the government; construction of theme pavilions, conference center(s), performing arts center(s) as well as other public spaces on the site; construction and operation of the Expo Village; construction of the service facilities on the site; supplying services to the Organizer in the fields of human resources, construction & exhibition layout, and maintenance, etc; if so wish, supplying services to participants in the fields of human resources, construction & exhibition layout, and maintenance, etc. based on market rules and the principle of being free of monopoly.

2.4 Special Legislative Measures

The Chinese government will follow relevant articles in the Convention Relating to International Exhibitions (hereinafter referred to as the “Convention”) and its Customs Regulations on the Importation of Articles by the Participants in an International Exhibition (hereinafter referred to as the “Customs Annex”) and deliver its promises made during the bidding stage in term of offering special treatment to the Organizer, the International Bureau of Expositions (hereinafter referred to as the “BIE”), Official Participants and foreign staff in the payment of tariff, commercial and industrial taxes and other types of taxes payable by foreigners visiting or staying in China.

The Chinese Government is to implement the special policies and measures to ensure the Commissioner General of Section may fulfill his or her role of responsibilities pursuant to Article 13 of the Convention.

Since the success of the bid, the Chinese Government has attached great importance to the protection of the intellectual property related to Expo 2010, and has been drafting and enacting administrative laws at the national level for the protection of the Expo symbols. Examined and approved by the 66th Executive Meeting of the State Council on October 13th, 2004, Regulations for the Protection of the World Exposition Symbols has been officially promulgated by a decree of the State Council issued by Premier Wen Jiabao on October 20th, 2004 (Ref: 1-5). The Regulations entered into force on December 1st, 2004. China thus also stressed the Participant’s intellectual properties protection. Participants’ intellectual properties, which are consistent with the Chinese laws and international conventions adopted by China, shall be well respected and protected. In order to facilitate the participation, Chinese Government is, under the current framework of legislation on intellectual property rights, contemplating on special regulations in this respect for Expo 2010.

2.5 Applicable Laws and Regulations

The Chinese Government is doing its best to ensure the smooth preparation for Expo 2010 Shanghai China. China will abide by the Convention and other BIE regulations in effect. China will also submit the General Regulations and the Special Regulations in due time according to BIE rules and observe these regulations. Rights and obligations between the Organizer and the participant shall be fixed in the Participation Contract.

In addition, relevant Chinese laws and regulations as well as international conventions or treaties that China has entered into are also applicable to the Expo, including:

a. General areas

l        General Principles of the Civil Law of the People’s Republic of China

l        Contract Law of the People’s Republic of China

l        Guarantee Law of the People’s Republic of China

l        Insurance Law of the People’s Republic of China

l        Civil Procedure Law of the People’s Republic of China

l        Labor Law of the People’s Republic of China

l        Arbitration Law of the People’s Republic of China

l        United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards

b. Intellectual property

l        Convention Establishing the World Intellectual Property Organization

l        Paris Convention for the Protection of Industrial Property

l        Treaty on Intellectual Property in Respects of Integrated Circuits

l        Madrid Agreement Concerning the International Registration of Marks

l        Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks

l        Berne Convention for the Protection of Literary and Artistic Works

l        Universal Copyright Convention

l        Convention on Protection of Producers of Phonograms against Unauthorized Duplication of their Phonograms

l        Patent Cooperation Treaty

l        Nice Agreement Concerning the International Classification of Goods and Service for the Registration of Marks

l        Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure

l        International Convention for the Protection of New Varieties of Plants

l        Agreement on Trade-related Aspects of Intellectual Property Rights

l        Patent Law of the People’s Republic of China and its Implementing Regulations

l        Trademark Law of the People’s Republic of China and its Implementing Regulations

l        Copyright Law of the People’s Republic of China and its Implementing Regulations

l        Anti-unfair Competition Law of the People’s Republic of China

l        Regulations of the People’s Republic of China on the Customs Protection of Intellectual Property Rights

l        Regulations on the Protection of the Computer Programs

l        Regulations on the Protection of Layout Design of Integrated Circuits

l        Regulations on Patent Agency

l        Regulations on the Collective Management of Copyright

l        Regulations of the People’s Republic of China on the Administration of Special Symbols

l        Regulations on the Protection of the World Exposition Symbols

c. Customs

l        Customs Law of the People’s Republic of China

l        The Rules of Administrative Penalties for the Implementation of the Customs Law of the People’s Republic of China

l        Supervisory Measures on Imports Under Temporary Admission of the Customs of the People’s Republic of China

l        Supervisory Measures on Imported Exhibits of the Customs of the People’s Republic of China

l        Supervisory Measures on Imports and Exports Using ATA Carnets of the Customs of the People’s Republic of China

l        Operational Procedures for the Supervisory Measures on Imports and Exports Using ATA Carnets of the Customs of the People’s Republic of China

l        Regulations of the People’s Republic of China on Import and Export Duties

d. Taxation                                                                                                                   

l        Law of the People’s Republic of China on Tax Levy and Management

l        Individual Income Tax Law of the People’s Republic of China and Its Implementing Regulations

l        Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises and Its Implementing Regulations

l        Value Added Tax Regulations (Tentative) of the People’s Republic of China

l        Enterprise Income Tax Regulations (Tentative) of the People’s Republic of China

l        Urban Land Use Tax Regulations (Tentative) of the People’s Republic of China

l        Land Value Added Tax Regulations (Tentative) of the People’s Republic of China

l        Business Tax Regulations (Tentative) of the People’s Republic of China

l        Consumption Tax Regulations (Tentative) of the People’s Republic of China

l        Stamp Duty Regulations (Tentative) of the People’s Republic of China

e. Others

l        Law of the People’s Republic of China on Administration for Public Security

l        Law of the People’s Republic of China on the Prevention and Control of Infectious Diseases

l        Regulations of the People’s Republic of China on Exit and Entry Frontier Inspection

l        Frontier Health and Quarantine Law of the People’s Republic of China

l        Law of the People’s Republic of China on the Imported and Exported Animal and Plant Quarantine

l        Law of the People’s Republic of China on Import and Export Commodity Inspection

l        Fire Prevention Law of the People’s Republic of China

l        Advertisement Law of the People’s Republic of China

l        Construction Law of the People’s Republic of China


  Ref: 1-1 Application Letter for Registration of the World Exposition Shanghai China 2010 Issued by the Government of the People’s Republic of China

Mr. V. G. Loscertales

Secretary General of the Bureau International des Expositions

Beijing, April 1st, 2005

Dear Mr. Loscertales,

Following the approval of the date of the World Exposition Shanghai China 2010 by the General Assembly of the Bureau International des Expositions at its 132nd session held in December 2002, the Government of the People’s Republic of China hereby applies for registration of the World Exposition Shanghai China 2010 and submits the required documents to the Bureau, in accordance with the provisions of Article 6 of the Convention Relating to International Exhibitions.

The World Exposition Shanghai China 2010 will be held from May 1st to October 31st 2010, on the theme “Better City, Better Life”.

The Government of the People’s Republic of China will make its utmost efforts and take all measures necessary to fulfill the obligations of the host country as prescribed in the provisions of the Convention Relating to International Exhibitions, particularly in Article 10 of the Convention.

Wu Yi

Vice Premier of the State Council

People’s Republic of China

Chairperson of

Shanghai 2010 World Exposition National Organizing Committee


  Ref: 1-2 Messages of Commitment from the Central Government Leaders, Relevant Ministries and Commissions and the Shanghai Municipal Government

Message by Mr. Tang Jiaxuan, Minister of Foreign Affairs of PRC

On Granting the Convenience of Entry during Expo 2010 Shanghai China

Beijing, December 30th, 2001

The Chinese Government shall observe the provisions of the Convention Relating to the International Exhibitions and, in accordance with China’s relevant rules, issue visas to and provide necessary convenience for the preparatory and exhibition staff of the participants in light of their actual needs.

Meanwhile, the Chinese Government shall issue corresponding visas and accord entry convenience to visitors to Shanghai from all countries during the Exposition in accordance with the relevant laws and regulations of the People’s Republic of China.


 

Message by Mr. Xiang Huaicheng, Minister of Finance of PRC

On Providing Financial Support for Expo 2010 Shanghai China

Beijing, December 26th, 2001

If Expo 2010 is held in Shanghai, the Chinese Central Government will provide full support for the financial expenditures incurred for hosting the Exposition.


 

Message by Mr. Jia Chunwang, Minister of Public Security of PRC

On Guaranteeing the Security during Expo 2010 Shanghai China

Beijing, December 27th, 2001

The Ministry of Public Security of the People’s Republic of China hereby gives its full support to the holding of Expo 2010 in Shanghai. The central and local public security departments of China pledge adequate force to prevent and dispel any religious, political and ethnic disturbances or any potential threats from terrorist groups and preserve long-term social stability. During the Exposition, the Ministry of Public Security of the People’s Republic of China shall cooperate closely with relevant international institutions and various domestic departments concerned in facilitating the entry and exit of tourists. It will take every effective measure to ensure security throughout the Exposition and protect the personal safety and property of the exhibitors and visitors.

The security departments in Shanghai and throughout China have built a network of strict social security control capable of effective prevention, quick response and emergency handling, ready to implement all protective measures to ensure the safety and security of Expo 2010 under the guidance of BIE.


 

Message by Mr. Mou Xinsheng, Administrator of Customs of PRC

On Granting Convenience for Customs Clearance for the Import and Export of Goods during Expo 2010 Shanghai China

Beijing, December 26th, 2001

The General Administration of Customs of the People’s Republic of China hereby solemnly pledges as follows:

Ⅰ.The customs clearance for Expo 2010 Shanghai China shall be handled in accordance with the Customs Law of the People’s Republic of China and other relevant Chinese laws and regulations as well as the Rules for Customs Declaration of Imported Goods from Exhibitors for the World Exposition as contained in the Convention Relating to International Exhibitions. The customs formalities will be streamlined to facilitate the clearance procedures.

Ⅱ.For the exhibits imported by the participants during the Exposition, the Customs shall apply temporary import procedures, waiving the import permit, the import duty and other customs duties and taxes. Those exhibits include:

1. Goods and articles to be displayed or demonstrated in the Exposition;

2. Articles required for the machines or instruments to be demonstrated;

3. Building and decoration materials that participants may use to construct the temporary exhibition stands; and

4. Audio-visual equipment, films, slides, video tapes, tapes, manuals and advertisements for demonstrating and promoting the exhibits.

The above-mentioned exhibits to be imported during the Exposition are categorized as “temporarily imported goods” with the approval of the Customs and exempted from the import permit, the import duty and other customs duties and taxes. Those exhibits other than the consumables identified by the Customs should be transported out of China after the Exposition. For those exhibits converted into imported goods, the Customs shall require regular import formalities according to the Customs Law of the People’s Republic of China, the Supervisory Measures on Imported Exhibits of the Customs of the People’s Republic of China and the Supervisory Measures on Imports under Temporary Admission of the Customs of the People’s Republic of China.

Ⅲ. The afore-mentioned exhibits, other than the consumables, samples, publicity and promotion articles used or distributed as gifts during the Exposition, shall be transported out of China after the Exposition. For those to be sold or re-used in China, they shall go through customs formalities in accordance with the relevant rules of the Customs of the People’s Republic of China.

IV. Temporary entry permits shall be granted to the articles for the personal use of the working personnel of the participants in the Exposition, the accredited media, the sponsors and the suppliers concerned with the Exposition.

V. Any printed matter or audio-visual products that are harmful to China politically, economically, culturally and morally or that would violate the intellectual property rights of others shall be banned from display or use. They shall be confiscated or turned back by the Customs, or rectified by the exhibitors before use.

VI. The participants that are signatories to the ATA Convention (Customs Convention on the ATA Carnet for the Temporary Admission of Goods) are advised to go through the customs clearance procedures with the ATA carnet.


 

Message by Mr. Li Changjiang, Administrator of Quality Supervision and Inspection and Quarantine of PRC on Facilitating the Inspection and Quarantine Clearance during Expo 2010 Shanghai China

Beijing, December 29th, 2001

I. General Administration of Quality Supervision, Inspection and Quarantine shall provide the following conveniences:

1. Temporary inspection passages shall be set up on the entry inspection sites of all airports and seaports for the participating delegations and other relevant personnel.

2. Temporary inspection and quarantine and inspection declaration offices shall be set up on the Exposition site to provide convenience in the following terms:

(a) Providing consulting service as regards inspection and quarantine;

(b) Controlling and handling in time emergencies concerning inspection and quarantine; and

(c) Receiving the electronic documents of declaration that the participating delegations submit in advance of the animals and plants and the relevant by-products, and taking necessary measures to facilitate their admission.

II. During the Exposition, the General Administration shall provide the following conveniences for the working personnel of the participating delegations as regards their health inspection:

1. The working personnel of the participating delegations may submit a collective declaration for health inspection through the agency of a certain Chinese department;

2. For the working personnel who declare of their own accord the contraction of AIDS (including HIV carriers), venereal diseases and leprosy, the General Administration shall issue the permit for their entry after informing the reception departments which shall take necessary supervision and control measures accordingly; and

3. The working personnel of the participating delegations who come from the areas infected with yellow fever shall present a valid certificate of yellow fever inoculation, or otherwise shall be detained for inspection by the inspection and quarantine department at the port of entry according to relevant regulations.

III. During the Exposition, the General Administration shall apply official inspection and quarantine procedures in accordance with relevant rules to the animals and their by-products that the working personnel of the participating delegations may bring for personal use, such as fruits, smoked meat, ham, butter, cheese, and fresh milk. The participating delegations may submit, one month in advance via an agency, a list of the animals and plants and their by-products for personal use to the General Administration. At the time of entry, the General Administration shall apply the inspection and quarantine procedure at the port of entry, and issue the entry permit after registration provided that the inspection requirements are met and potential threat dispelled. After entry, it shall exercise supervision over the use of the above-mentioned animal and plant foodstuff. The left-over and waste of the above-mentioned articles shall be destroyed under its supervision.

IV. The participating delegations shall enjoy the following conveniences as regards the inspection and quarantine of their exhibits for entry:

1. The animals and plants and their by-products required for the Exposition shall enjoy the necessary convenience as regards the application of the Quarantine Permit of Animals and Plants for Entry;

2. The not-for-sale articles may be exempted from quality inspection so long as the governments of the participating countries or regions have produced the quality guarantee; and

3. The articles to be inspected shall go through collective declaration, collective inspection and quarantine, and collective admission at the special office of the General Administration to Expo 2010 Shanghai China.


 

Letter from the Shanghai Municipal People’s Government

Shanghai, December 10th, 2001

President Gilles Noghes,

Secretary General V.G. Loscertales,

Delegates to the Bureau International des Expositions,

In my capacity as Acting Mayor of Shanghai and on behalf of the Shanghai Municipal People’s Government and all the sixteen million people of Shanghai, I have the pleasure to present Shanghai’s candidature for Expo 2010.

Shanghai, an economic center of China, is a fast-growing metropolis blending the eastern and western cultures. We firmly believe that, with the support of the Chinese Government and the entire Chinese people, Shanghai, determined as it is, is capable of making Expo 2010 a complete success and turning the Expo into a bridge for international economic and cultural exchanges leading to greater friendship among all peoples.

Let me assure you that, given the honor to host Expo 2010, Shanghai will provide top-class transport facilities, state-of-the-art technological services, and a clean and beautiful environment. We pledge that the residents of Shanghai will spare no effort to make a success of the Exposition and leave an indelible impression upon all the participants.

We earnestly hope that Expo 2010 will be held in Shanghai.

Chen Liangyu

Acting Mayor of Shanghai


 

Letter of Commitment from the Shanghai Municipal People’s Government

Shanghai, December 10th, 2001

President Gilles Noghes,

Secretary General V.G. Loscertales,

Delegates to the Bureau International des Expositions,

The Shanghai Municipal People’s Government hereby fully supports the plans put forward by the Expo 2010 Shanghai China State Bidding Commission and Expo 2010 Shanghai China Municipal Bidding Committee as regards land use, construction, budget, security guarantee and other projects for the Exposition. We hereby pledge to satisfy all and any requirements in terms of finance, space, personnel and pavilions, abide by all regulations set by BIE, fulfill relevant obligations on our part, and carry out responsibilities arising in the process of bidding for and hosting Expo 2010. We also promise to adopt other necessary means and measures to ensure the success of Expo 2010 Shanghai China.

Chen Liangyu

Acting Mayor of Shanghai


    Ref: 3. Regulations on the Protection of the World Exposition Symbols

Article 1

The present Regulations are formulated for the purpose of enforcing the protection of the World Exposition symbols and safeguarding the legitimate rights and interests of the rights holders of the World Exposition symbols.

Article 2

For the purpose of these Regulations, “the World Exposition symbols” refer to:

(1) The name (including the full name, short name, translated name and abbreviations, hereinafter the same), emblem, or other symbols of the bidding organization of the World Exposition Shanghai China 2010;

(2) The name, emblem or other symbols of the Organizer of the World Exposition Shanghai China 2010;

(3) The name, emblem, flag, mascot, anthem, thematic term, and slogan of the World Exposition Shanghai China 2010; and

(4) The flag of the Bureau International des Expositions.

Article 3

For the purpose of these Regulations, “rights holders of the World Exposition symbols” refer to the Organizer of the World Exposition Shanghai China 2010 and the Bureau International des Expositions.

The Organizer of the World Exposition Shanghai China 2010 is the rights holder of the World Exposition symbols prescribed in Para.1, Para.2 and Para.3 of Article 2 of these Regulations. The division of the rights of the World Exposition symbols referred to in Para.4 of Article 2 between the Organizer of the World Exposition Shanghai China 2010 and the Bureau International des Expositions shall be determined in accordance with the Bid Documents, the application for Registration of the World Exposition Shanghai China 2010 and the Regulations Concerning the Use of the International Exhibition’s Flag.

Article 4

The rights holders of the World Exposition symbols own the exclusive rights of the World Exposition symbols according to these Regulations.

No one may use the World Exposition symbols for commercial purposes (including potential commercial purposes, hereinafter the same) without the authorization of the rights holders of the World Exposition symbols.

Article 5

For the purpose of these Regulations, “use for commercial purposes” means the use of the World Exposition symbols for profit-making purposes in the following ways:

(1) Using World Exposition symbols on goods, packaging or containers of goods or trade transaction documents;

(2) Using the World Exposition symbols in the service industry;

(3) Using the World Exposition symbols in advertisements and publicities, commercial exhibitions, profit-making performances and other commercial activities;

(4) Selling, importing or exporting the goods bearing the World Exposition symbols;

(5) Manufacturing or selling the World Exposition symbols;

(6) Using the World Exposition symbols as trade name for the registration of enterprise name, which may mislead or confuse the market; and

(7) Other acts of using the World Exposition symbols that might mislead people to infer license relationships between the doer of the act and the rights holders of the World Exposition symbols.

Article 6

The administrative department for industry and commerce under the State Council shall, under the provisions of these Regulations, be responsible for the protection of the World Exposition symbols throughout the country.

The administrative department for industry and commerce at or above the county level shall, under the provisions of these Regulations, be responsible for the protection of the World Exposition symbols within their respective administrative areas.

Article 7

The rights holders of the World Exposition symbols shall report their World Exposition symbols for the record to the administrative department for industry and commerce under the State Council which shall make a public announcement thereof.

Article 8

The lawful use of the World Exposition symbols before the effective date of these Regulations may continue within the defined limits.

Article 9

Any disputes arising from the arbitrary use of the World Exposition symbols for commercial purposes without the authorization of the rights holders of the World Exposition symbols, that is, from the infringement upon the exclusive rights to the World Exposition symbols, shall be settled through consultation among the parties concerned. If the parties concerned are unwilling to resort to consultation or the consultation fails, the rights holders of the World Exposition symbols or the interested parties may institute legal proceedings in the people’s court according to law or request the administrative department for industry and commerce to handle the case.

Upon the request of the parties concerned, the administrative department for industry and commerce may mediate on the amount of compensation for the loss caused by the infringement of the exclusive rights to the World Exposition symbols. If the mediation fails, any parties concerned may, in accordance with relevant laws, institute legal proceedings in the people’s court.

Article 10

When an administrative department for industry and commerce, on the basis of evidence or information obtained, investigates into a suspected infringement upon the exclusive rights to the World Exposition symbols, it may exercise the following functions and powers:

(1) Questioning the parties concerned to find out the facts regarding the infringement upon the exclusive rights to the World Exposition symbols;

(2) Checking and reproducing the contracts, invoices, account books and other materials related to the infringement;

(3) Conducting on-the-spot inspection of the premises where the party concerned conducts suspected acts infringing upon the exclusive rights to the World Exposition symbols; and

(4) Inspecting articles involved in the infringement, sealing or seizing the articles that may serve as evidences for the infringement upon the exclusive rights to the World Exposition symbols.

When the administrative department for industry and commerce exercises the functions and powers provided for in the preceding paragraph in accordance with law, the parties concerned shall assist and cooperate with it, and may not refuse to do so or stand in its way.

Article 11

Where the administrative department for industry and commerce determines that the fact of infringement is established, it shall order the culprit to cease the infringement immediately, and it shall confiscate and destroy the goods in question and the tools for manufacturing the goods or the World Exposition symbols for commercial purposes without authorization. If there are illegal proceeds, the administrative department for industry and commerce shall confiscate them and at the same time impose a fine of no more than five times of the illegal proceeds; if there are no illegal proceeds, a fine of no more than RMB 50,000 may be imposed.

Where a person uses the World Exposition symbols to engage in swindle or other illegal activities which constitute a crime shall be subjected to criminal investigations in accordance with relevant laws.

Article 12

Any goods that infringe upon the exclusive rights to the World Exposition symbols shall be banned from import or export. The provisions of the Regulations of the People’s Republic of China on the Customs Protection of Intellectual Property Rights shall apply to the procedure of the customs protection of the exclusive rights to the World Exposition symbols.

Article 13

The amount of compensation for infringement of the exclusive rights to the World Exposition symbols shall be determined on the basis of the loss that the rights holder suffers from the infringement or the profit that the culprit gains, including the reasonable expenses paid for investigating the infringement. Where the losses incurred as a result of the infringement and the profit obtained by the culprit are difficult to determine, the compensation shall be reasonably determined in the light of the licensing fees for using the World Exposition symbols in question.

Those who unknowingly sell goods which infringe upon the exclusive rights to the World Exposition symbols and can prove that the goods are acquired lawfully and identify the supplier shall not bear any compensation liability.

Article 14

Any entity or individual may inform the administrative department for industry and commerce or other administrative departments concerned of any act of using the World Exposition symbols in violation of the provisions of these Regulations.

Article 15

In addition to these Regulations, the World Exposition symbols are also protected by other laws and administrative regulations such as the Copyright Law of the People’s Republic of China, the Trademark Law of the People’s Republic of China, the Patent Law of the People’s Republic of China, the Anti-unfair Competition Law of the People’s Republic of China and the Regulations on Administration of Special Symbols.

Article 16

The present Regulations shall enter into force on December 1st, 2004.