(Promulgated by the State Council on February 5,1982)ª¥ª¥

Article 1  This Measures is established in accordance with Article 18 of the "Environmental Protection Law of The P.R. China (For Trial Implementation)" which provides that "In cases where discharged pollutants exceed the specified national standards, a fee shall be charged according to the quantity and concentration of the pollutants discharged as specified in the relevant regulations."

Article 2  The purpose of pollufion charge is to promote enterprises and institutions to sterngthen business management and integrated uses of resources as well as improvement of environment.

Article 3  All enterprises and institutions should implement the relevant standards issued by the State, such as the "Discharge Standards of Industrial  Three Wastes (For Trail Implementation)" on the like. Local enterprises and institutions should implement the regional discharge standards approved and issued by the government of province, autonomous region or municipality directly under the Central Government.

The enterprises or institutions discharging pollutant beyond the standards mentioned above should be levied for pollutant discharge, while the other pollutant discharge institutions should be levied for discharge of smoke and dust from space heating boiler.

The pollutant discharge institutions having paid the pollution discharge fee will not be exempted from the duty to control pollution and to compensate damages as well as other duties stipulated by law.

Article 4  The pollutant discharge institutions should report truly to the local environmental protection department and register the kind, quantity and concentration of the discharged pollutants to be used as the basis for charge of pollution discharge fee after examined and approved by the environmental protection department of the appointed monitoring institutions.

Article 5  The pollution charge Rate will be carried out according to the tables appended to this provision. For very few large or medium-sized cities with intensive and specially serious pollution, the pollution charge Rate may be adjusted suitably after approval by the Leading Group of Environmental Protection of The State Council.

When the wastewater, waste gas or solid wastes discharged from the same outlet of the pollutant discharge institutions contains two or more hazardous substances, the highest pollution charge Rate for each of these hazardous pollutants should be applied. For the items added to the regional discharge standards, the charge Rate will be stipulated by the government of province, autonomous region on municipality to this provision.

Article 6  As to the pollutant discharge institutions which has paid the pollutant discharge fee but have not met the discharge standards for three years, the charge Rate for the pollutant discharge will be raised five percent each year thereafter. The discharge institutions which have met the discharge standards or markedly decreased the quantity and concentration of the discharged pollutants through control and sterngthened management may apply to the local environmental protection department for terminating or reducing the discharge fee.

After the issue of the "Environmental Protection Law of the P.R. China (For Trial Implementation)", double fines will be applied to the engineering project of new construction, reconstruction or extension as that for tapping the latent power, innovation or reform which has discharge pollutant facilities are not operated or dismantled arbitrarily.

Each province, autonomous region of municipality, directly under the Central Government may make other stipulations to increase or to reduce the discharge Rate based on practical conditions.

Article 7  The pollutant discharge fee will be levied each month or each season. No matter what is the subordination and the ownership, the pollutant discharge institutions should pay to the appointed bank the discharge fee according to the notification of the local environmental protection department within twenty days. If overdue, the fine for delaying payment will be 1¡ë for each day.

The fee from the pollutant discharge institutions subordinate to the ministry of The Central Government or to province (autonomous region or municipality directly under the Central Government) will be paid to the provincial finance. In the cities where the pollutant discharge enterprises of this level are centralized, the fee may be paid to the local finance after the approval of the provincial government.ª¥

Article 8  The pollutant discharge fee paid by the enterprises may be included into production costs. A part of the fee due to the charge Rate raising may come from the profits reserved for or the fund of these state-owned enterprises. Incase these enterprises have practiced "handing in tax instead of profits, independent accounting and responsibility for its own profits of looses", as well as the enterprises of collective ownership, may pay the discharge fee from the net profits after paying their taxes. For the institutions, the fee may be paid using their own surplus and the funds besides their budget, and also their operating expense in case deficiency.

Article 9 The discharge fee levied will be brought within the budget as a subsidiary fund for environmental protection under special management and not to be divided to other system.This subsidiary fund is allocated by coordinated arrangement of the environmental protection department jointly with the financial agency, insisting on special use, expense after income, balance of output and input, and no misappropriation. the surplus may be transferred for expense in next year.

Article 10  This subsidiary fund should be used mainly for the control of pollution sources in key discharge institutions and the integrated control of environmental pollution.In adoption of the control measures of pollution, the discharge institutions should first use their own money, and in case of shortage, a certain amount may be subsidized through application to the environmental protection and financial departments by their competent authorities after examining and collecting with the total amount below 80% of the paid discharge fee. This 80% of the subsidiary fund may also be allocated to these competent authorities to arrange for various discharge institutions, under the supervision of environmental protection and financial departments.ª¥

This subsidiary fund may be used adaptably to subsidize the environmental protection departments to buy or install monitoring instruments or equipment; and should not be used for their own administrative expense or other expenditure like construction of official building and dormitories.

Article 11  The subsidiary fund for environmental protection will be supervised and allocated through the bank of construction.

Article 12  The government of province, autonomous region or municipality directly under the Central Government may work out concrete implementation provisions on the basis of this provision.ª¥

Article 13  This Measures comes into force from July 1, 1982.