PRC, Administrative Licensing Law

(Promulgated on 27 August 2003 and effective as of 1 July 2004.)

PART ONE: GENERAL PROVISIONS

Article 1: This Law is formulated in accordance with the Constitution in order to standardize the establishment and implementation of administrative licensing, to protect the lawful rights and interests of citizens, legal persons and other organizations, to safeguard public interests and social order, and to safeguard and supervise effective implementation and administration by administrative authorities.

Article 2: For the purposes of this Law, the term "administrative licensing" shall refer to permission to engage in a specific activity granted by administrative authorities upon application by a citizen, legal person or other organization after examination in accordance with the law.

Article 3: This Law shall apply to the establishment and implementation of administrative licensing.

This Law shall not apply to the examination and approval by the relevant administrative authorities of the personnel, finance and foreign affairs, etc. of other organs or of institutions directly administered by such administrative authorities.

Article 4: The establishment and implementation of administrative licensing shall be in accordance with the statutory authority, scope, conditions and procedures.

Article 5: The establishment and implementation of administrative licensing shall follow the principles of openness, fairness and impartiality.

Regulations regarding administrative licensing shall be promulgated. Those that have not been promulgated shall not form the basis for the implementation of administrative licensing. The implementation and results of administrative licensing shall be publicized unless they involve State secrets, trade secrets or personal privacy.

Applicants that satisfy the statutory conditions and standards shall have an equal right to obtain administrative licences in accordance with the law. Administrative authorities shall not show prejudice.

Article 6: The implementation of administrative licensing shall follow the principles of convenience for the people, enhance operational efficiency and provide quality services.

Article 7: Citizens, legal persons and other organizations shall enjoy the right to state their views and plead their case with regard to the implementation of administrative licensing by administrative authorities. They shall have the right to apply for administrative review or to initiate an administrative proceeding in accordance with the law. If their lawful rights and interests are harmed due to illegal implementation of administrative licensing by administrative authorities, they shall have the right to request for compensation.

Article 8: The administrative licences obtained by citizens, legal persons and other organizations in accordance with the law shall enjoy the protection of the law. Administrative authorities shall not, without authorization, alter administrative licences that are already in effect.

Where the laws, regulations or rules on which administrative licences are based have been amended or revoked, or there are major changes in the objective conditions under which administrative licences were granted, administrative authorities may, according to the needs of public interest, amend or withdraw administrative licences that are already in effect in accordance with the law. Administrative authorities shall grant compensation in accordance with the law to citizens, legal persons or other organizations for property losses arising therefrom.

Article 9: Administrative licences obtained in accordance with the law shall not be transferred unless laws or regulations stipulate that they may be transferred in accordance with the statutory conditions and procedures.

Article 10: People's governments at the county level and above shall establish sound supervisory systems for the implementation of administrative licensing by administrative authorities, and shall strengthen supervision and inspection of the implementation of administrative licensing by administrative authorities.

Administrative authorities shall implement effective supervision of the activities of administrative licensing items of citizens, legal persons and other organizations.

PART TWO: ESTABLISHMENT OF ADMINISTRATIVE LICENSING

Article 11: The establishment of administrative licensing shall follow the patterns of economic and social development, be beneficial to bringing enthusiasm and initiative of citizens, legal persons and other organizations into play, safeguard public interests and social order, and shall promote the co-ordinated development of the economy, society and the ecological environment.

Article 12: Administrative licensing may be established for the following items:

1. items for which approval is required in accordance with the statutory conditions, such as specific activities that directly involve national security, public safety, macroeconomic adjustment and control, protection of ecological environment, and that directly relate to personal health, and safety of life and property, etc.;

2. items for which special rights are required to be granted, such as the development and use of limited natural resources, the allocation of public resources and entry into the market of specific industries directly related to public interests, etc.;

3. items for which the possession of special reputation and conditions, or qualifications and qualities such as special skills is required to be determined, such as professions and industries that provide public services and directly relate to public interests;

4. items for which examination by way of inspection, testing or quarantine in accordance with technical standards and guidelines are required, such as important equipment, facilities, products and articles directly related to public safety, personal health, and safety of life and property;

5. items for which the determination of the qualifications of the entity is required, such as the establishment of enterprises and other organizations, etc.; and

6. other items for which laws and administrative regulations stipulate that administrative licensing may be established.

Article 13: Administrative licensing need not be established for the items listed in Article 12 hereof where they can be standardized by the following methods:

1. they can be decided by the citizen, legal person or other organization on its own;

2. they can be effectively regulated by market competition mechanisms;

3. they can be self-administered by industry organizations or intermediary institutions; or

4. they can be resolved by administrative authorities by way of subsequent supervision or other administrative methods.

Article 14: Administrative licensing may be established by law for items listed in Article 12 hereof. Where laws have not yet been formulated, administrative licensing can be established by administrative regulations.

When necessary, the State Council may establish administrative licensing by way of promulgation of decisions. After the implementation of such decisions, the State Council shall, in a timely manner, request the National People’s Congress and its Standing Committee to formulate a law or formulate an administrative regulation itself, except for temporary administrative licensing items.

Article 15: Where laws and administrative regulations regarding the items listed in Article 12 hereof have not yet been formulated, administrative licensing may be established by regional regulations. Where laws, administrative regulations and regional regulations have not yet been formulated and it is necessary to implement administrative licensing immediately due to the needs of administration, temporary administrative licensing may be established by the regulations and rules of the people’s governments of provinces, autonomous regions and municipalities directly under the central government. If it is necessary to continue the implementation of the temporary administrative licensing after it has been in operation for one year, a request for the formulation of regional regulations shall be submitted to the People’s Congress and its Standing Committee at the same level.

Regional regulations and regulations of the people’s governments of provinces, autonomous regions and municipalities directly under the central government shall not establish administrative licensing regarding the qualifications or quality of citizens, legal persons or other organizations that should be decided uniformly by the State. They shall not establish administrative licensing for the registration of establishment of enterprises and other organizations or for their pre-establishment. The administrative licensing established by one region shall not restrain individuals or enterprises from other regions from engaging in production and operation, and providing services in that region, nor prevent products from other regions from entering the market of that region.

Article 16: Administrative regulations may, within the scope of administrative licensing items stipulated in laws, formulate specific provisions for the implementation of such administrative licensing.

Regional regulations may, within the scope of administrative licensing items stipulated in laws and administrative regulations, formulate specific provisions for the implementation of such administrative licensing.

Regulations and rules may, within the scope of administrative licensing items stipulated in laws with higher authority, formulate specific provisions for the implementation of such administrative licensing.

The specific provisions of laws, regulations and rules for the implementation of administrative licensing items established in laws with higher authority may not establish additional administrative licensing. Specific provisions on the conditions for administrative licensing may not include additional conditions that violate laws with higher authority.

Article 17: Except as stipulated in Articles 14 and 15 hereof, no other regulatory document may establish administrative licensing.

Article 18: The establishment of administrative licensing shall stipulate the authority, conditions, procedures and time period of the implementation of administrative licensing.

Article 19: In the case of draft laws and regulations, and the draft regulations and rules of people’s governments of provinces, autonomous regions and municipalities directly under the central government that are intended to establish administrative licensing, the drafting work unit shall seek opinions through hearing sessions and discussion sessions, and shall explain to the formulating authority the need for the establishment of such administrative licensing, its possible effects on the economy and society, and the opinions it has listened to and adopted.

Article 20: The authority establishing administrative licensing shall regularly evaluate the administrative licensing that it has established. If the administrative licensing established is deemed possible to be resolved by the methods listed in Article 13 hereof, the authority shall amend or repeal the provisions regarding the establishment of administrative licensing in a timely manner.

The authority implementing administrative licensing may evaluate the implementation of the established administrative licensing and the need for its existence when appropriate, and report its opinions to the authority establishing such administrative licensing.

Citizens, legal persons and other organizations may submit their opinions and suggestions on the establishment and implementation of administrative licensing to the authorities establishing and implementing the administrative licensing.

Article 21: The people’s governments of provinces, autonomous regions and municipalities directly under the central government may, upon approval of the State Council, halt the implementation of administrative licensing involving economic affairs established by administrative regulations in their administrative region where it is regarded that the administrative licensing can be resolved by the methods listed in Article 13 hereof on the basis of economic and social development in their administrative region.

PART THREE: IMPLEMENTING AUTHORITIES OF ADMINISTRATIVE LICENSING

Article 22: Administrative licensing shall be implemented by administrative authorities that possess the right of administrative licensing within the scope of their statutory functions and powers.

Article 23: Organizations that possess the functions of administering public affairs as authorized by laws and regulations shall implement administrative licensing in their own name within the statutory scope of authorization. The relevant provisions hereof regarding administrative authorities shall apply to such authorized organizations.

Article 24: An administrative authority may, within the scope of its statutory functions and powers, appoint another administrative authority to implement administrative licensing in accordance with the provisions of laws, regulations and rules. The appointing authority shall publicly announce the appointed administrative authority and the details of the appointment of the implementation of administrative licensing.

The appointing administrative authority shall be responsible for supervising the implementation of administrative licensing by the appointed administrative authority, and shall bear the legal liability for the results of the implementation.

The appointed administrative authority shall implement administrative licensing in the name of the appointing administrative authority within the scope of its appointment. It may not appoint another organization or individual to implement the administrative licensing.

Article 25: The people’s governments of provinces, autonomous regions and municipalities directly under the central government may, upon approval of the State Council and according to the principle of simplification, unity and efficiency, decide on a particular administrative authority’s exercise of the right of administrative licensing of the relevant administrative authority.

Article 26: If administrative licensing needs to be handled by several organizations within an administrative authority, such administrative authority shall decide on one organization to uniformly handle applications for administrative licensing and to uniformly serve decisions on administrative licensing.

If administrative licensing is to be implemented by two or more departments within a regional people’s government respectively in accordance with the law, the people’s government at that level may decide on one of these departments to receive all applications for administrative licensing and to handle them uniformly after transmitting the decision to the relevant department(s) and seeking their views, or it may organize joint or centralized handling of applications by the relevant departments.

Article 27: Administrative authorities implementing administrative licensing shall not impose on applicants improper demands such as purchase of a specific product or receipt of paid services.

The working personnel of administrative authorities handling administrative licensing shall not demand for or accept money or property from applicants, or seek other benefits.

Article 28: The inspection, testing and quarantine of equipment, facilities, products and articles directly related to public safety, personal health and safety of life and property shall be carried out by professional technical organizations that satisfy the statutory conditions, except where it is stipulated in laws or administrative regulations to be implemented by an administrative authority. Such professional technical organizations and the relevant personnel shall bear the legal liability for the results of such inspection, testing and quarantine.

PART FOUR: IMPLEMENTING PROCEDURES FOR ADMINISTRATIVE LICENSING

Section One: Application and Acceptance

Article 29: Citizens, legal persons and other organizations that engage in specific activities requiring administrative licensing according to law shall apply to administrative authorities. Where it is necessary to use standard texts for application, the administrative authority shall provide the standard texts for administrative licensing application to the applicant. The standard texts for the application shall not contain any content not directly related to the application for administrative licensing item.

Applicants may appoint an agent to apply for administrative licensing, except where the law requires the applicant to apply at the office of the administrative authority.

Applications for administrative licensing may be submitted by letter, telegram, telex, facsimile, electronic data exchange and electronic mail, etc.

Article 30: Administrative authorities shall publicly display in their office premises items, basis, conditions, number, procedures and time limit relevant to administrative licensing, and a list of all the materials that must be submitted and sample texts for application.

Where an applicant requests the administrative authority for an explanation or interpretation regarding the contents in public display, the administrative authority shall give an explanation or interpretation and provide accurate and reliable information.

Article 31: Applicants applying for administrative licensing shall truthfully provide the administrative authority with the relevant materials and reflect the true circumstances, and shall be responsible for the authenticity of the substantive contents of their application materials. The administrative authority may not require applicants to submit technical information or other materials not related to their application for the administrative licensing item.

Article 32: In regards to applications for administrative licensing submitted by applicants, administrative authorities shall handle them according to the following circumstances respectively:

1. where the item applied for does not by law require administrative licensing, the authority shall immediately notify the applicant that the application is rejected;

2. where the item applied for does not fall within the scope of the functions and powers of that administrative authority, the authority shall immediately render a decision to reject the application and notify the applicant of the relevant administrative authority to which they should apply;

3. where the application materials contain errors that can be corrected on the spot, they shall allow the applicant to do so;

4. where the application materials are incomplete or do not conform to the statutory format, they shall for once notify the applicant of all contents that must be supplemented or corrected on the spot or within five days. If they fail to do so within the time limit, the application shall be deemed as being accepted as of the day of receipt of the application materials;

5. where the item applied for falls within the scope of the functions and powers of the administrative authority and the application materials are complete and conform to the statutory format, or where the applicant has submitted all the supplementary and corrected materials as requested by the administrative authority, the application for administrative licensing shall be accepted.

Whether an administrative authority accepts or rejects an application, it shall issue a written certificate stamped with the seal of the administrative authority and with clear indication of the date.

Article 33: Administrative authorities shall establish and improve the relevant systems, promote electronic administration, publicize administrative licensing items on their websites, and make convenient arrangements for applicants to submit applications for administrative licensing through the use of electronic data transfer. They shall share information on administrative licensing with other administrative authorities and enhance operational efficiency.

Section Two: Examination and Decision

Article 34: Administrative authorities shall examine the application materials submitted by applicants.

Where the application materials submitted by an applicant are complete and conform to the statutory format, and the administrative authority is able to render a decision on the spot, it shall issue a decision on administrative licensing in writing on the spot.

Where it is necessary in accordance with the statutory conditions and procedures to verify the substantive contents of the application materials, the administrative authority shall appoint two or more working personnel to do so.

Article 35: Where administrative licensing must first be examined by the administrative authority at the level below before being submitted for decision by the administrative authority at the level above according to law, the administrative authority at the level below shall submit its preliminary examination opinions and all the application materials to the administrative authority at the level above directly within the statutory time limit. The administrative authority at the level above may not request the applicant to submit the application materials again.

Article 36: When an administrative authority, in the course of examination of an application for administrative licensing, discovers that the administrative licensing item is directly related to the major interests of another party, it shall notify such interested party. The applicant and the interested party shall have the right to state their views and plead their case. The administrative authority shall listen to the opinions of the applicant and the interested party.

Article 37: After an administrative authority has examined an application for administrative licensing, it shall render a decision on administrative licensing in accordance with the stipulated procedures within the statutory time limit, except where such a decision has been rendered on the spot.

Article 38: Where an applicant’s application satisfies the statutory conditions and standards, the administrative authority shall render a written decision to grant administrative licence in accordance with the law.

Where an administrative authority renders a written decision not to grant administrative licence in accordance with the law, it shall explain the reasons therefor and notify the applicant of his right to apply for an administrative review or initiate an administrative proceeding in accordance with the law.

Article 39: Where an administrative authority renders a decision to grant administrative licence and needs to issue administrative licensing documents, it shall issue the following administrative licensing documents stamped with the seal of the administrative authority to the applicant:

1. a licence, permit or other licensing certificates;

2. a qualification or quality certificate, or other qualification certificates;

3. an approval document or certifying document from the administrative authority; or

4. other administrative licensing documents stipulated by laws or regulations.

Where an administrative authority carries out inspection, testing or quarantine, it may affix a label or seal of inspection, testing or quarantine on the equipment, facilities, products or articles that have passed the inspection, testing or quarantine.

Article 40: The decisions of administrative authorities to grant administrative licence shall be publicized, and the public have the right of consultation.

Article 41: Where there is no geographical restriction on the applicability of administrative licensing established by laws or administrative regulations, the administrative licence obtained by the applicant shall be effective across the country.

Section Three: Time Limits

Article 42: Except where a decision on administrative licensing can be rendered on the spot, an administrative authority shall render a decision on administrative licensing within 20 days of the date of acceptance of the application for administrative licensing. If the administrative authority is unable to do so within 20 days, the time limit may be extended for 10 days upon approval of the persons in charge of the administrative authority, and the applicant shall be notified of the reasons for the extension of the time limit. However, where there are other stipulations in laws and regulations, such stipulations shall prevail.

Where administrative licensing may be processed uniformly, jointly or centrally according to Article 26 hereof, the period for processing shall not exceed 45 days. If processing is not completed within 45 days, the period may be extended for 15 days upon approval of the persons in charge of the people’s government at that level, and the applicant shall be notified of the reasons for the extension of the time limit.

Article 43: Where administrative licensing must first be examined by the administrative authority at the level below before being submitted for decision by the administrative authority at the level above according to law, the administrative authority at the level below shall complete its examination within 20 days of the date of acceptance of the application for administrative licensing. However, where there are other stipulations in laws and regulations, such stipulations shall prevail.

Article 44: When an administrative authority renders a decision to grant administrative licence, it shall, within 10 days of rendering the decision, issue and serve the administrative licensing documents on the applicant or affix a label or seal of inspection, testing or quarantine.

Article 45: Where a decision rendered by an administrative authority on administrative licensing requires a hearing, invitation to tender, auction, inspection, testing, quarantine, appraisal or evaluation by experts according to law, the time required shall not be included in the time limits stipulated in this Section. The administrative authority shall notify the applicant of the required time in writing.

Section Four: Hearings

Article 46: Where it is stipulated in laws or regulations that the implementation of administrative licensing item requires a hearing, or where an administrative authority deems that a hearing is necessary for other major administrative licensing items that involve public interests, the administrative authority shall announce to the public and hold a hearing.

Article 47: Where administrative licensing directly involves the major interests of the applicant and another party, the administrative authority shall, before rendering a decision on administrative licensing, notify the applicant and the interested party that they have the right to request a hearing. If the applicant or the interested party applies for a hearing within five days of the date of notification of the right to a hearing, the administrative authority shall organize a hearing within 20 days.

The applicant or the interested party shall not bear the costs of the hearing organized by the administrative authority.

Article 48: Hearings shall be held in accordance with the following procedures:

1. the administrative authority shall notify the applicant and the interested party of the time and venue of the hearing to be held seven days prior to the hearing, and make a public announcement when necessary;

2. the hearing shall be held in public;

3. the administrative authority shall designate persons other than the working personnel that examined the application for administrative licensing to chair the hearing. If the applicant or the interested party considers that the chairperson has a direct interest in the administrative licensing item, he shall have the right to apply for the withdrawal of that person;

4. when the hearing is held, the working personnel that examined the application for administrative licensing shall provide the evidence and reasons for the examination opinions. The applicant and the interested party may submit evidence, and may plead their case and cross-examine the evidence; and

5. a written record of the hearing shall be made, which shall be signed or stamped by the participants of the hearing after they have confirmed its accuracy.

The administrative authority shall render a decision on administrative licensing in accordance with the written record of the hearing.

Section Five: Changes and Extensions

Article 49: Where a licensee requests for a change in the administrative licensing item, he shall apply to the administrative authority that rendered the decision on administrative licensing. If the statutory conditions and standards are satisfied, the administrative authority shall handle the amendment procedures in accordance with the law.

Article 50: Where a licensee needs to extend the period of validity of a legally obtained administrative licence, he shall apply to the administrative authority that rendered the decision on administrative licensing 30 days before the licence expires. However, where there are other stipulations in laws, regulations and rules, such stipulations shall prevail.

The administrative authority shall, on the basis of the licensee’s application, decide whether or not to grant an extension before the administrative licence expires. If it fails to do so within the time limit, it shall be deemed as granting the extension.

Section Six: Special Provisions

Article 51: Where there are provisions in this Section for the implementing procedures of administrative licensing, such provisions shall apply. Where there are no provisions in this Section, the other provisions in this Part shall apply.

Article 52: The provisions of the relevant laws and administrative regulations shall apply to the procedures for implementation of administrative licensing by the State Council.

Article 53: In case of implementation of administrative licensing for items listed in Item (2) of Article 12 hereof, administrative authorities shall render a decision through fair competition such as invitation to tender and auction, etc. However, where there are other stipulations in laws and administrative regulations, such stipulations shall prevail.

The specific procedures for administrative authorities to render a decision on administrative licensing through methods such as invitation to tender and auction, etc. shall comply with the provisions of the relevant laws and administrative regulations.

After an administrative authority has determined the winning tenderer or buyer according to the tendering or auction procedures, it shall render a decision to grant administrative licence and issue administrative licensing documents to the winning tenderer or buyer.

If an administrative authority fails to use such methods as invitation to tender or auction in violation of this Article, or violates the tendering or auction procedures and thereby damages the lawful rights and interests of an applicant, the applicant may apply for an administrative review or initiate an administrative proceeding in accordance with the law.

Article 54: In case of implementation of administrative licensing for items listed in Item (3) of Article 12 hereof, and national examination are to be held for granting specific qualifications to citizens in accordance with the law, the administrative authority shall render a decision on administrative licensing according to the examination results and other statutory conditions. In case of grant of qualifications or quality to a legal person or other organization, the administrative authority shall render a decision on administrative licensing on the basis of the results of an assessment of the constituents of the applicant’s professionals, technical conditions, business performance and management level, etc. However, where there are other stipulations in laws and administrative regulations, such stipulations shall prevail.

Examinations for specific qualifications of citizens shall be implemented in accordance with the law by administrative authorities or industry organizations, and shall be held in public. The administrative authorities or industry organizations shall publicly announce the criteria for entering, the procedures for registering, the subject of the examination and a general outline of the examination. However, they may not organize compulsory pre-examination training for qualifying examinations nor designate reading materials or other aiding materials for the examination.

Article 55: In case of implementation of administrative licensing for items listed in Item (4) of Article 12 hereof, inspection, testing and quarantine shall be carried out in accordance with technical standards and guidelines according to law. The administrative authorities shall render a decision on administrative licensing on the basis of the results of the inspection, testing and quarantine.

Administrative authorities implementing inspection, testing or quarantine shall designate two or more working personnel to carry out the inspection, testing or quarantine in accordance with technical standards and guidelines within five days of the date of acceptance of the application. Where it is unnecessary to carry out further technical analysis of the results of the inspection, testing or quarantine to determine whether the equipment, facility, product or article complies with technical standards and guidelines, the administrative authority shall render a decision on administrative licensing on the spot.

Where an administrative authority decides on the basis of the results of inspection, testing and quarantine not to grant administrative licence, it shall clarify in writing the technical standards or guidelines on which the decision is based.

Article 56: In case of implementation of administrative licensing for items listed in Item (5) of Article 12 hereof, and the application materials submitted by the applicant are complete and in the statutory format, administrative authorities shall grant registration on the spot. Where it is necessary to verify the substantive contents of the application materials, administrative authorities shall handle the matter in accordance with Paragraph Three of Article 34 hereof.

Article 57: Where there is a quota for administrative licensing and the applications of two or more applicants satisfy the statutory conditions and standards, administrative authorities shall render a decision to grant administrative licence on the basis of the order in which the applications for administrative licensing were accepted. However, where there are other stipulations in laws and administrative regulations, such stipulations shall prevail.

PART FIVE: FEES FOR ADMINISTRATIVE LICENSING

Article 58: Administrative authorities may not collect any fee for implementing administrative licensing or supervising and inspecting administrative licensing items. However, where there are other stipulations in laws and administrative regulations, such stipulations shall prevail.

Administrative authorities shall not charge for the provision of standard texts for application forms for administrative licensing.

The costs of implementing administrative licensing by administrative authorities shall be included in their budgets. They shall be guaranteed by government finance at the same level, and verified and assigned in accordance with the approved budget.

Article 59: Where an administrative authority collects fees in accordance with laws and regulations in the course of implementation of administrative licensing, it shall collect fees in accordance with the announced statutory items and standards. The fees collected must all be handed over to the State treasury. No administrative authority or individual may retain them, divert them to other purposes, divide them or covertly divide them in any form. Finance departments may not in any form return or covertly return to administrative authorities the fees collected for the implementation of administrative licensing.

PART SIX: SUPERVISION AND INSPECTION

Article 60: Administrative authorities at upper levels shall strengthen supervision and inspection of the implementation of administrative licensing by administrative authorities at lower levels, and shall rectify illegal acts in the implementation of administrative licensing in a timely manner.

Article 61: Administrative authorities shall establish sound supervisory systems. They shall perform their supervisory responsibilities through the verification of materials related to the activities of administrative licensing items of licensees.

When supervising and inspecting the activities of administrative licensing items of licensees in accordance with the law, administrative authorities shall record the details of the supervision and investigation and the handling results, and these records shall be put on file after being signed by the supervisory and inspection personnel. The public has the right to consult the supervision and inspection records of administrative authorities.

Administrative authorities shall create conditions and link up with the computer filing systems of licensees and other relevant administrative authorities to verify and investigate the activities of administrative licensing items of licensees.

Article 62: Administrative authorities may carry out spot checks, inspection and testing of products produced and traded by licensees, and inspection of their production and business sites in accordance with the law. During inspection, administrative authorities may review, or request the licensee to submit relevant materials in accordance with the law. The licensee shall truthfully provide the relevant details and materials.

Administrative authorities shall, in accordance with the provisions of laws and administrative regulations, carry out regular inspection of important equipment and facilities directly related to public safety, personal health and safety of life and property. Administrative authorities shall issue the corresponding certifying documents to those that have passed inspection.

Article 63: When carrying out supervision and inspection, administrative authorities shall not obstruct the normal production and business activities of the licensee. They shall not demand for or accept money or property from the licensee, or seek other benefits.

Article 64: Where a licensee engages in illegal activities of administrative licensing items outside the jurisdiction of the administrative authority that rendered the decision on administrative licensing, the administrative authority of the place where the illegal act occurs shall copy and report the facts of the illegality and the handling results to the administrative authority that rendered the decision on administrative licensing in accordance with the law.

Article 65: Where an individual or organization discovers illegal activities of administrative licensing items, he/it shall have the right to report to administrative authorities, and the administrative authorities shall verify the facts and handle the matter in a timely manner.

Article 66: If a licensee fails to perform his obligations to develop and use natural resources or perform his obligation to use public resources according to law, the administrative authorities shall order rectification within a stipulated time limit. If a licensee fails to do so within the stipulated time limit, the administrative authority shall handle the matter in accordance with the provisions of the relevant laws and administrative regulations.

Article 67: Licensees that have obtained administrative licences for entry into the market of specific industries directly related to public interests shall provide to users safe, convenient, stable and reasonably priced services in accordance with the service and price standards stipulated by the State and the conditions stipulated by administrative authorities according to law, and shall perform the obligations of general services. They may not terminate or suspend operations without the authorization of the administrative authority that rendered the decision on administrative licensing.

If a licensee fails to perform the obligations stipulated in the preceding paragraph, the administrative authority shall order rectification within a stipulated time limit, or shall adopt effective measures to supervise and urge his performance of obligations according to law.

Article 68: Administrative authorities shall supervise and urge the establishment of self-inspection systems by work units engaged in the design, construction, installation and use of important equipment and facilities directly related to public safety, personal health and safety of life and property.

If, in the course of supervision and inspection, an administrative authority discovers potential safety problems with important equipment or facilities directly related to public safety, personal health and safety of life and property, it shall order a halt to the construction, installation and use, and shall order the work unit engaged in the design, construction, installation and use to rectify the matter immediately.

Article 69: In any of the following circumstances, the administrative authority that rendered the decision on administrative licensing or the administrative authority at the level above may revoke the administrative licence at the request of an interested party or on its own authority:

1. the working personnel of the administrative authority abuses his power or is derelict in his duties in rendering a decision to grant administrative licence;

2. a decision to grant administrative licence that exceeds statutory power has been made;

3. a decision to grant administrative licence has been made in violation of the statutory procedures;

4. administrative licensing has been granted to an applicant that does not possess the qualifications to apply or that does not satisfy the statutory conditions; or

5. other circumstances in which an administrative licence may be revoked in accordance with the law.

If a licensee obtains an administrative licence through improper means such as deception or bribery, such licence shall be revoked.

If the revocation of administrative licence in accordance with the preceding two paragraphs may cause major damage to public interests, such licence shall not be revoked.

If an administrative licence is revoked in accordance with the first paragraph of this Article, and the lawful rights and interests of the licensee are damaged, the administrative authority shall grant compensation in accordance with the law. If an administrative licence is revoked in accordance with the second paragraph of this Article, the gains accrued by the licensee through the administrative licence shall not be protected. 

Article 70: In any of the following circumstances, an administrative authority shall handle the cancellation procedures for the relevant administrative licence in accordance with the law:

1. the administrative licence has expired and has not been extended;

2. the citizen that has been granted an administrative licence of a specific qualification has died or has lost his capacity to act;

3. a legal person or other organization has been terminated in accordance with the law;

4. an administrative licence has been revoked or withdrawn in accordance with the law, or the administrative licence has been cancelled;

5. it is impossible to implement the administrative licensing item due to force majeure; or

6. other circumstances in which the administrative licence must be cancelled in accordance with laws and regulations.

PART SEVEN: LEGAL LIABILITY

Article 71: If administrative licensing is established in violation of Article 17 hereof, the relevant authority shall order the authority establishing such administrative licensing to rectify the matter, or shall revoke the licensing in accordance with the law.

Article 72: If an administrative authority and its working personnel violate the provisions hereof in any of the following circumstances, the administrative authority at the level above or the supervisory authority shall order rectification. If the circumstances are serious, the persons directly in charge and other directly responsible personnel shall be subjected to administrative penalty in accordance with the law:

1. rejecting an application for administrative licensing that satisfies the statutory conditions;

2. not displaying publicly information in the office premises that should be displayed publicly;

3. failure to perform the statutory notification obligations to the applicant and the interested party in the course of accepting, examining and deciding on applications for administrative licensing;

4. not notifying an applicant for once of all the materials that need to be supplemented and corrected where the application materials are incomplete or do not conform to the statutory format;

5. not explaining the reasons for rejecting an application for administrative licensing or for not granting an administrative licence in accordance with the law; or

6. not holding a hearing where a hearing should be held in accordance with the law.

Article 73: If, in the course of handling administrative licensing or implementing supervision and inspection, the working personnel of administrative authorities demands for or accepts money or property from others, or seek other benefits, and if a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law. If no criminal offence is constituted, he shall be subjected to administrative penalty in accordance with the law.

Article 74: If an administrative authority commits any of the following acts when implementing administrative licensing, the administrative authority at the level above or the supervisory authority shall order rectification and impose administrative penalty on the persons directly in charge and other directly responsible personnel. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law:

1. an administrative licence is granted to an applicant that does not satisfy the statutory conditions, or a decision to grant administrative licence that exceeds statutory power is made;

2. an applicant that satisfies the statutory conditions is not granted an administrative licence, or a decision to grant administrative licence is not made within the stipulated time limit; or

3. where a decision to grant administrative licence is to be made on the basis of the results of invitation to tender, auction or selection of the best examination result, there has been no invitation to tender, auction or examination, or the decision to grant administrative licence is not made on the basis of the results of the invitation to tender, auction or selection of the best examination result.

Article 75: If an administrative authority implementing administrative licensing collects unauthorized fees or collects fees not in accord with the statutory items and standards, it shall be ordered by the administrative authority at the level above or the supervisory authority to return the fees collected illegally. The persons directly in charge and other directly responsible personnel shall be subjected to administrative penalty.

Fees collected in accordance with the law for implementation of administrative licensing that have been retained, diverted to other purposes, divided or covertly divided shall be recovered. The persons directly in charge and other directly responsible personnel shall be subjected to administrative penalty. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law.

Article 76: If an administrative authority implements administrative licensing in violation of the law and thereby damages the lawful rights and interests of the party involved, it shall grant compensation in accordance with the provisions of the State Compensation Law.

Article 77: If an administrative authority fails to carry out its supervisory duties in accordance with the law or carries out supervision ineffectively, thereby causing serious consequences, it shall be ordered to rectify the matter by the administrative authority at the level above or the supervisory authority. The persons directly in charge and other directly responsible personnel shall be subjected to administrative penalty. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law.

Article 78: If an applicant for administrative licensing conceals relevant details or provides false information, the administrative authority shall reject the application or shall not grant an administrative licence, and shall issue a warning. If the application for administrative licensing is for an item that directly relates to public safety, personal health or safety of life and property, the applicant may not apply again for administrative licensing within one year.

Article 79: If a licensee obtains an administrative licence through improper means such as deception or bribery, the administrative authority shall impose an administrative penalty in accordance with the law. If the administrative licence so obtained is for an item that directly relates to public safety, personal health or safety of life and property, the applicant may not apply again for administrative licensing within three years. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law.

Article 80: If a licensee is in any of the following circumstances, an administrative authority shall impose administrative penalty in accordance with the law. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law:

1. altering, scalping, renting out or lending out administrative licensing documents, or illegally assigning administrative licences in any other form;

2. engaging in activities outside the scope of the administrative licensing;

3. concealing the relevant details from, providing false information or refusing to provide truthful materials that reflect the details of activities to, the administrative authority responsible for supervision and inspection; or

4. other illegal acts stipulated in laws, regulations and rules.

Article 81: If a citizen, legal person or other organization engages, without administrative licensing, in activities that requires administrative licensing in accordance with the law, the administrative authority shall adopt measures to halt such activities in accordance with the law, and shall impose administrative penalty in accordance with the law. If a criminal offence is constituted, the criminal liability shall be pursued in accordance with the law.

PART EIGHT: SUPPLEMENTARY PROVISIONS

Article 82: The time limits for the implementation of administrative licensing by administrative authorities stipulated herein shall be calculated in working days, and shall not include statutory holidays.

Article 83: This Law shall be effective as of 1 July 2004.

Provisions on administrative licensing prior to the implementation of this Law shall be screened by the formulating authorities in accordance with the provisions hereof. The implementation of those that do not comply with the provisions hereof shall be terminated as of the date of implementation of this Law.

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