Development and Reform Commissions, Economic Commissions (Economic and Trade Commissions), Finance Departments (Bureaus), State Tax Bureaus, and Local Tax Bureaus of all provinces, autonomous regions, municipalities directly under the central government, cities designated in the planning system, sub-provincial capital cities, and the Xinjiang Production and Construction Corps; as well as relevant departments of the State Council:

In accordance with the spirit of the “Notice of the General Office of the State Council on Retaining Certain Non-Administrative Licensing Approval Items” (Guobanfa [2004] No. 62), and guided by the principle of streamlining and enhancing efficiency, we have merged the procedures for recognizing enterprises engaged in comprehensive resource utilization with those for recognizing power plants engaged in comprehensive resource utilization. In line with the relevant provisions of the “Administrative Licensing Law” and taking into account the practical realities of comprehensive resource utilization efforts, we have revised the original “Administrative Measures for the Recognition of Comprehensive Resource Utilization” (Guojingmao Ziyuan [1998] No. 716) and the “Administrative Measures for the Recognition of Power Plants (Units) Engaged in Comprehensive Resource Utilization” (Guojingmao Ziyuan [2000] No. 660), issued by the former State Economic and Trade Commission and other relevant authorities. On this basis, we have specially formulated the “Administrative Measures for the Recognition of Comprehensive Resource Utilization Encouraged by the State.” These measures are hereby distributed to you; please ensure their thorough implementation. The original “Administrative Measures for the Recognition of Comprehensive Resource Utilization” and the “Administrative Measures for the Recognition of Power Plants (Units) Engaged in Comprehensive Resource Utilization,” issued by the former State Economic and Trade Commission and other relevant authorities, are hereby repealed simultaneously.

The comprehensive utilization of resources is a long-term strategic guideline in China’s economic and social development, as well as a major techno-economic policy. It plays an extremely important role in enhancing resource-use efficiency, developing a circular economy, and building a resource-conserving society. All localities should strengthen the management of the certification process for comprehensive resource utilization, effectively implement the state’s policies to encourage and support such utilization, and promote the healthy development of this endeavor. Should you have any comments or suggestions during implementation, please report them to us promptly.

National Development and Reform Commission
Ministry of Finance
State Administration of Taxation
September 7, 2006

Administrative Measures for the Recognition of Comprehensive Resource Utilization Encouraged by the State

Chapter 1 General Provisions

Article 1 To implement the state’s policies encouraging and supporting the comprehensive utilization of resources, strengthen the management of comprehensive resource utilization, encourage enterprises to engage in such utilization, and promote sustainable economic and social development, this Regulation is formulated in accordance with the “Notice of the General Office of the State Council on Retaining Certain Non-Administrative Licensing Approval Items” (Guobanfa [2004] No. 62) and the spirit of relevant national policies and regulations.

Article 2 The “national recognition of comprehensive resource utilization encouraged by the state” referred to in these Measures refers to the recognition of comprehensive resource utilization processes, technologies, or products that comply with the state’s policies for encouraging and supporting comprehensive resource utilization (hereinafter referred to as “comprehensive resource utilization recognition”).

Article 3 The National Development and Reform Commission is responsible for the organizational coordination and supervisory management of the recognition of comprehensive resource utilization.

The administrative departments responsible for comprehensive resource utilization in each province, autonomous region, municipality directly under the central government, and cities under separate planning (hereinafter referred to as the provincial-level departments for comprehensive resource utilization) are tasked with the identification and supervisory management of comprehensive resource utilization within their respective jurisdictions. The financial administrative authorities shall strengthen their supervisory and management efforts regarding the financial aspects of enterprises that have been identified. The tax administrative authorities shall intensify tax supervision and management, and earnestly implement the state’s preferential tax policies for comprehensive resource utilization.

Article 4 Enterprises whose products have been certified as utilizing comprehensive resource utilization, or that employ processes and technologies for comprehensive resource utilization, may apply for tax and operational preferential policies in accordance with relevant national regulations.

Chapter 2: Application Requirements and Recognition Criteria

Article 5 Enterprises applying for recognition of comprehensive resource utilization must meet the following conditions:

(1) The production process, technology, or products comply with the national industrial policies and relevant standards;

(2) Products from comprehensive resource utilization can independently calculate profits and losses;

(3) The sources of raw (and fuel) materials used are stable and reliable, with quantities and quality meeting the relevant requirements, and supporting conditions such as water and electricity have been duly secured.

(4) Complies with environmental protection requirements and does not generate secondary pollution.

Article 6 Comprehensive utilization power generation units applying for recognition of comprehensive resource utilization shall also meet the following conditions:

(1) Power stations constructed with approval (or ratification) by the government authorities in accordance with the state’s approval or ratification authority.

(2) For power generation utilizing coal gangue (stone coal, oil shale), coal slime, etc., the primary fuel must be coal gangue (stone coal, oil shale), coal slime, with its usage accounting for no less than 60% (by weight) of the total fuel fed into the furnace. For power generation using coal gangue (stone coal, oil shale), the gross calorific value on an as-received basis of the fuel fed into the furnace shall not exceed 12,550 kilojoules per kilogram. Automatic feeding display and recording devices for raw coal, coal gangue, and coal slime must be installed.

(3) Waste-to-energy conversion from municipal solid waste (including sludge) shall meet the following conditions: The construction and operation of waste incineration furnaces shall comply with relevant national or industry standards and regulations; supporting documentation issued by the sanitation authorities at the prefectural or municipal level is required to verify the quantity and quality of waste used; the actual monthly waste consumption shall not be less than 90% of the designed capacity; where fluidized-bed boilers are used for waste-to-energy conversion with co-firing of raw coal, the proportion of waste used shall not be less than 80% (by weight) of the total fuel fed into the furnace; and the system must be equipped with automatic display and recording devices for both waste and raw coal feed rates.

(4) Enterprises (branch plants and workshops) that generate electricity using waste heat and pressure differences produced during industrial processes shall determine the installed capacity of their industrial waste heat and pressure power plants based on the quality and quantity of the waste heat and pressure generated, as well as the gas consumption of the production process and the available working fluid parameters.

(5) For the recovery and utilization of coalbed methane (coal mine gas), biogas (landfill gas from municipal solid waste), converter gas, blast furnace gas, and biomass energy as fuel for power generation, there must be sufficient and stable resource supplies, and the installed capacity should be rationally configured based on the available resource volumes.

Article 7 Certification Content

(1) Verify whether the enterprises or entities applying for comprehensive utilization certification have complied with the government’s approval or ratification procedures, whether the project construction meets the requirements of such approval or ratification, and whether the products and processes for comprehensive resource utilization conform to national industrial policies, technical standards, and the application conditions for certification.

(2) Verify whether the declared resource-integrated utilization products fall within the scope of the “Catalog of Resource Integrated Utilization,” as well as the sources and reliability of the resources being utilized in an integrated manner.

(3) Determine whether the conditions stipulated in the national preferential policies for comprehensive utilization of resources are met.

Chapter 3: Application and Recognition Procedures

Article 8 The recognition of comprehensive resource utilization is implemented through a system in which enterprises submit applications, the resource utilization management department of the municipal (or prefectural) people's government where the enterprise is located (hereinafter referred to as the municipal-level resource utilization management authority) conducts a preliminary review, and the provincial-level resource utilization management authority, together with relevant departments, carries out a centralized approval process. The provincial-level resource utilization management authority shall publicly announce the specific schedule for annual recognition of comprehensive resource utilization one month in advance.

Article 9 Any enterprise applying for preferential policies on the comprehensive utilization of resources shall submit a written application to the municipal-level authority responsible for the comprehensive utilization of resources and provide the required supporting documents. After consulting with relevant departments at the same level, such as the finance department, the municipal-level authority responsible for the comprehensive utilization of resources shall complete the preliminary review within 30 days from the date of receipt of the application and submit its preliminary review opinion to the provincial-level authority responsible for the comprehensive utilization of resources.

Article 10 The municipal-level competent authority for comprehensive resource utilization shall handle applications for recognition of comprehensive resource utilization submitted by applicant entities according to the following circumstances:

(1) If the application falls within the scope of comprehensive resource utilization recognition and the submitted materials are complete, it shall be accepted and a preliminary review opinion shall be provided.

(2) If the application does not fall within the scope of recognition for comprehensive resource utilization, the applicant unit shall be immediately informed of the decision not to accept the application, along with an explanation of the reasons.

(3) If the application materials are incomplete or do not meet the prescribed requirements, the applicant shall be notified on the spot or within five days of all the information that needs to be supplemented.

Article 11 The provincial-level competent authority for comprehensive resource utilization, together with the corresponding financial and other relevant administrative departments as well as industry experts, shall establish a Comprehensive Resource Utilization Certification Committee (hereinafter referred to as the “Comprehensive Utilization Certification Committee”). This committee shall complete the certification review within 45 days, in accordance with the certification criteria and content stipulated in Chapter Two.

Article 12 If any of the following circumstances apply, the provincial-level department in charge of comprehensive resource utilization shall submit a preliminary review opinion to the National Development and Reform Commission for approval.

(1) Process for resource-integrated power generation units with a single-unit capacity of 25 MW or more;

(2) Comprehensive utilization of coal gangue (coal slime, stone coal, oil shale) for power generation;

(3) Waste (including sludge) power generation technology.

The review of the above-mentioned circumstances is conducted once a year, with the application period ending by the end of July each year. The review process must be completed within 60 days from the deadline for applications.

Article 13 The provincial-level competent authority for comprehensive resource utilization shall, based on the certification conclusions issued by the Comprehensive Utilization Certification Committee or the review opinions of the National Development and Reform Commission, publicly announce the enterprises that have been certified as qualified for comprehensive resource utilization. If no objections are raised within 10 days from the date of publication of the announcement, the provincial-level competent authority for comprehensive resource utilization will issue a “Certificate of Comprehensive Resource Utilization” and file it with the National Development and Reform Commission. At the same time, it shall notify the corresponding-level finance and tax authorities of the relevant information. Enterprises that fail to obtain certification shall be notified in writing by the provincial-level competent authority for comprehensive resource utilization, along with an explanation of the reasons.

Article 14 If an enterprise disagrees with the determination conclusion reached by the Comprehensive Utilization Determination Committee, it may request a reconsideration from the same committee that originally issued the determination. The Comprehensive Utilization Determination Committee shall accept such a request. If the enterprise still disagrees with the reconsideration conclusion, it may directly file an appeal with the higher-level authority responsible for comprehensive resource utilization. The higher-level authority responsible for comprehensive resource utilization, based on its investigation and verification, shall, in conjunction with relevant departments, formulate a reasoned opinion and has the right to modify the determination conclusion issued by the lower-level authority.

Article 15 The “Certificate of Recognition for Comprehensive Resource Utilization” is uniformly standardized by the National Development and Reform Commission and printed by the competent authorities for comprehensive resource utilization at the provincial level. The validity period of the certificate is two years.

Article 16 Units that have obtained the “Certificate of Recognition for Comprehensive Resource Utilization” and, due to certain reasons, undergo changes in their enterprise name or in their products, processes, or other related information, shall submit an application to the municipal-level authority responsible for comprehensive resource utilization, along with supporting documentation. After the municipal-level authority provides its opinion and submits the application to the provincial-level authority for recognition and review, the relevant information shall be promptly communicated to the corresponding-level finance and tax authorities.

Chapter Four: Supervision and Management

Article 17 The National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation shall strengthen supervision and inspection of the management of resource comprehensive utilization certification and the implementation of preferential policies. They shall also, based on the development status of resource comprehensive utilization, adjustments to national industrial policies, and levels of technological advancement, revise the certification criteria for resource comprehensive utilization in a timely manner.

Article 18 The competent authorities for comprehensive resource utilization at all levels should adopt practical measures to strengthen supervision and management of certified enterprises, with particular emphasis on enhancing dynamic monitoring of the sources of bulk comprehensively utilized resources. Enterprises whose comprehensively utilized resources cannot be supplied reliably should be promptly removed from the list. Without disrupting the normal production and business activities of enterprises, annual inspections and assessments should be conducted each year to monitor and understand the status of certified enterprises and their affiliated entities.

Financial and tax administrative authorities at all levels should strengthen information exchange with their counterparts in the departments responsible for comprehensive resource utilization. In particular, they should promptly share views and coordinate solutions regarding any issues identified during supervision and inspection.

Article 19 The provincial-level competent authority for comprehensive resource utilization shall, before the end of May each year, submit a report on the basic status of resource utilization certification for the previous year to the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation. The report shall primarily include:

(1) Status of certification work (including the number of enterprises certified as comprehensive resource utilization enterprises (power plants), the installed capacity of certified generating units, etc.)

(2) The status of comprehensive utilization of bulk resources by the recognized enterprises, as well as information on their sources (including resource types, quantities of comprehensive utilization, and supply conditions).

(3) Supervision of enterprises certified for comprehensive resource utilization (including annual inspections, spot checks, and penalty measures, etc.).

(4) Implementation of preferential policies for comprehensive resource utilization.

Article 20 Enterprises (power plants) that have obtained certification for comprehensive resource utilization products or processes shall strictly adhere to the requirements of the comprehensive resource utilization certification criteria, organize production accordingly, establish and improve management systems, refine statistical reporting, and submit statistical data and audited financial statements on schedule.

Article 21 　Enterprises that have obtained certification for comprehensive resource utilization products or processes, and which, due to factors such as the source of raw materials used in comprehensive resource utilization, are unable to meet the resource comprehensive utilization conditions required for certification, shall proactively report to the municipal-level competent authority for comprehensive resource utilization. The provincial-level certification and approval authority will then terminate their certification certificates and publicly announce this decision.

Article 22 The “Certificate of Recognition for Comprehensive Resource Utilization” is a prerequisite for tax authorities at all levels to approve tax reductions and exemptions for comprehensive resource utilization. Any enterprise that has not obtained this certificate shall, without exception, be prohibited from applying for tax reductions and exemptions.

Article 23 Staff involved in the certification process must strictly safeguard the commercial and technical secrets of enterprises certified under the comprehensive resource utilization program.

Article 24 Any organization or individual has the right to report and expose acts of fraudulently obtaining qualifications for comprehensive resource utilization and preferential policies through deceptive practices and other means.

Chapter Five: Penalties

Article 25 Enterprises found to have engaged in fraud or deception to obtain preferential policies for comprehensive resource utilization, or those that fail to promptly report the termination of their certification as required under Article 21 of these Measures, will have their eligibility to enjoy such preferential policies revoked upon discovery. The provincial-level authority responsible for comprehensive resource utilization will withdraw their certification and prohibit them from reapplying for certification for a period of three years. For enterprises that have already benefited from tax preferential policies, the competent tax authorities shall, in accordance with the "Law of the People's Republic of China on Tax Collection and Administration" and relevant provisions, recover the unpaid taxes and impose penalties.

Article 26 If any of the following circumstances exist, the provincial-level competent authority for comprehensive resource utilization shall revoke the qualification for comprehensive resource utilization and send a copy to the corresponding-level finance and tax authorities:

(1) Staff members of administrative agencies who abuse their authority or neglect their duties and make resource comprehensive utilization determinations that do not meet the required conditions;

(2) Making a determination on the comprehensive utilization of resources beyond statutory authority or in violation of prescribed legal procedures;

(3) Granting resource comprehensive utilization certification to applicant enterprises that do not meet the eligibility requirements or fail to satisfy the statutory conditions;

(4) Concealing relevant information, providing false materials, or refusing to provide authentic materials reflecting its operational activities; obtaining recognition for comprehensive resource utilization through improper means such as deception or bribery;

(5) Annual inspections and random checks fail to meet the criteria for recognition of comprehensive resource utilization, and no corrective measures are taken within the prescribed time limit, or despite taking corrective measures, the entity still fails to meet the recognition criteria.

Article 27 If staff members of administrative agencies engage in abuse of power, dereliction of duty, or fraudulent practices when handling the recognition of comprehensive resource utilization and conducting supervision and inspection, their respective departments shall impose administrative disciplinary measures. If such conduct constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 28 Those who forge certificates of comprehensive resource utilization will be held accountable according to relevant national laws and regulations.

Chapter VI Supplementary Provisions

Article 29 The preferential policies for comprehensive resource utilization referred to in these Measures are the national preferential policies for comprehensive resource utilization that enterprises certified as possessing resource-integrated products or processes and technologies may enjoy as prescribed.

Article 30 Enterprises (or entities) applying for tax preferential policies for the comprehensive utilization of resources must submit a tax reduction or exemption application to the competent tax authority, accompanied by the certification of their qualification. The competent tax authority will process the tax reduction or exemption procedures in accordance with relevant tax policies and regulations.

Enterprises applying to enjoy other preferential policies must present their certification to the relevant authorities to complete the procedures for obtaining these preferential policies.

Article 31 If the relevant provisions and preferential policies for comprehensive resource utilization covered by these Measures are revised, the revised versions shall prevail.

Article 32 Localities may, in accordance with these Measures and taking into account their specific local conditions, formulate implementing rules and submit them for record to the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation.

Article 33 These Measures shall be interpreted jointly by the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation.

Article 34 These Measures shall take effect as of October 1, 2006. The “Administrative Measures for the Recognition of Comprehensive Resource Utilization” (Guo Jing Mao Zi [1998] No. 716) and the “Administrative Measures for the Recognition of Power Plants (Units) Engaged in Comprehensive Resource Utilization” (Guo Jing Mao Zi [2000] No. 660), issued by the former State Economic and Trade Commission and the State Administration of Taxation, shall be repealed concurrently.