Regulations Governing Disposition Of Forest Products Of State-owned Forests Article 19

The relevant managing administration shall account the price of the forest products according to the following formula:Price of the forest products = （Total market price of such forest products/1 + profit margin + capital interest rate）－ production expensesThe market price of the forest products and the production expenses shall be determined based on the prevalent current price.The profit margin shall be 10% to 15% to be determined in accordance with the conditions of operation of the disposition case.The capital interest rate shall be determined by reference to banks' posted interest rates.The price of the forest products provided in the first paragraph shall be accounted as follows if the subject forest products belong to the blocking bamboos and/or trees provided in subparagraph 6 of the first paragraph of Article 14: where the subject forest products are those which must be removed to facilitate lumbering operation and reforestation, the price shall be accounted without regard to the profit margin; where the subject products are those which must be removed to facilitate mining survey, mining, quarrying and public construction work, the price shall be accounted without regard to the profit margin and the capital interest rate.