Decision of the State Administration for Market Regulation on Revising Two Rules Including the Interim Provisions on the Market Regulatory Procedure for Administrative Punishment

Decision of the State Administration for Market Regulation on Revising Two Rules Including the Interim Provisions on the Market Regulatory Procedure for Administrative Punishment
Decision of the State Administration for Market Regulation on Revising Two Rules Including the Interim Provisions on the Market Regulatory Procedure for Administrative Punishment

Order of the State Administration for Market Regulation No. 42

July 2, 2021

Decision of the State Administration for Market Regulation on Revising Two Rules Including the Interim Provisions on the Market Regulatory Procedure for Administrative Punishment, deliberated and adopted at the 10th executive meeting of the State Administration for Market Regulation on June 24, 2021, and is hereby issued and shall take effect on July 15, 2021.

Zhang Gong, Director

Decision of the State Administration for Market Regulation on Revising Two Rules Including the Interim Provisions on the Market Regulatory Procedure for Administrative Punishment

To implement the newly revised Law of the People's Republic of China on Administrative Penalties issued on January 22, 2021, the State Administration for Market Regulation has decided to revise some articles of the Interim Provisions on Administrative Penalty Procedures for Market Regulatory Departments and of the Interim Measures for Hearings Held by Market Regulatory Departments on Administrative Penalties

The Interim Provisions on the Market Regulatory Procedure for Administrative Punishment shall be amended according to this Decision and the order of articles shall be adjusted accordingly, and they will be released anew.

This Decision shall take effect on July 15, 2021.

Appendix 1: Revisions to the Interim Provisions on Administrative Penalty Procedures for Market Regulatory Departments

1. The title of the legislation is revised as “Provisions on the Market Regulatory Procedure for Administrative Punishment”.

2. The wording in Paragraph 1 of Article 4 “The relevant persons involved in the handling of cases shall withdraw themselves if they have a direct interest relationship with the parties concerned.” is revised as “The relevant persons involved in the handling of cases shall withdraw themselves if they have a direct interest in the cases or have other relations that may affect impartial law enforcement.”One paragraph is added as Paragraph 3, which reads: “The case investigation will not cease until the decision of withdrawal is made.” 

3. One article is added as Article 5, which read: “The market regulatory departments and the relevant persons involved in the handling of the cases shall maintain the confidentiality of state secrets, trade secrets and personal privacy they have known in the course of imposing administrative penalties.”  

4. Article 6 is changed to Article 7, in which, the wording “unless otherwise stipulated by laws and administrative regulations” is revised as “where the provisions of laws, administrative regulations and departmental rules provide otherwise, such provisions shall prevail”. 

5. Article 7 is changed to Article 8, in which, the wording “except where laws, regulations and rules stipulate that the market regulatory departments at or above the provincial level have the jurisdiction over the cases” is revised as “Where the provisions of laws, regulations and rules stipulate that the market regulatory departments at or above the provincial level have the jurisdiction over the cases, such provisions shall prevail”. 

6. Article 8 is changed to Article 9, and Paragraph 1 is revised to read: “The local offices of market regulatory departments shall, within the scope of authority conferred by their departments, impose administrative penalties in the name of such departments, unless they are authorized by laws and regulations to impose administrative penalties in the name of local offices”.The wording in Paragraph 2 “Market regulatory departments at or above the county level may appoint organizations that meet the conditions prescribed in the Law of the People's Republic of China on Administrative Penalties to impose administrative penalties within the statutory authority” is revised as “Market regulatory departments at or above the county level may appoint, in writing, within the statutory authority, organizations that meet the conditions prescribed in the Law of the People's Republic of China on Administrative Penalties to impose administrative penalties”.One paragraph is added as Paragraph 3: “A letter of appointment shall specify the specific matters, authority, term, etc. of appointment. The administrative organ granting the authority and the organization appointed shall make public the letter of appointment.” 

7. Article 9 is changed to Article 10, in which three of the wording “e-commerce” is revised as “online trading”.

8. Article 11 is changed to Article 12, in which the wording “shall fall under the jurisdiction of the market regulatory department that first places the case on file” is revised as “shall fall under the jurisdiction of the market regulatory department that places the case on file in the very first place”.

9. Article 12 is changed to Article 13, in which the wording “if the negotiation fails, they shall bring the dispute to the common market regulatory department at the next higher level for designation of jurisdiction” is revised as “if the negotiation fails, they shall bring the dispute to the common market regulatory department at the next higher level for designation of jurisdiction; or the common market regulatory department at the next higher level may directly designate the competent authority”.

10. Article 12 is changed to Article 13, in which the wording “Where a market regulatory department finds that a case under its investigation and handling does not fall under its jurisdiction” is revised as “Where a market regulatory department finds that it has no jurisdiction over a case which is placed on file for investigation and handling”.

11. Article 14 is changed to Article 15, the original Paragraph 1 is revised into two paragraphs, and Paragraph 1 reads: “Where a market regulatory department at the higher level may, when it deems necessary, directly handles a case that falls under the jurisdiction of a market regulatory department at the lower level, it may also transfer a case under its jurisdiction to a competent market regulatory department at the lower level. A market regulatory department at the higher level may not transfer a case that falls under its jurisdiction as expressly prescribed in laws, regulations and rules to a market regulatory department at the lower level.”
Paragraph 2 reads: “A market regulatory department at the higher level may, when it deems necessary, directly handles a case that falls under the jurisdiction of a market regulatory department at the lower level, or may designate a case under the jurisdiction of a market regulatory department at the lower level to other competent market regulatory departments at the lower level.”
The original Paragraph 2 is changed to Paragraph 3.
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