Daniel Arthur Laprès
Avocat au Barreau de Paris
Barrister & Solicitor (Nova Scotia Canada)
Of counsel to Kunlun Law Firm, Beijing, China
 
 
 

 

Product Quality Law of the People's Republic of China

 

Adopted at the 30th Meeting of the Standing Committee of the Seventh National People's

Congress on February 22, 1993

 

Amended in accordance with the Decisions on Amending the Product Quality Law of the People's

Republic of China which was adopted at the 24th Session of the Standing Committee of the Ninth

National People's Congress on October 27, 2001

 

 

Contents

 

Chapter I General Principles

 

Chapter II Supervision and Control of Product Quality

 

Chapter III Responsibilities and Obligations of Producers and Sellers

 

Chapter IV Compensation for Damage

 

Chapter V Penalty Provisions

 

Chapter VI Supplementary Provisions

 

 

 

Chapter I General Principles

 

Article 1

   

The law has been formulated with a view to reinforcing the supervision and regulation of product quality, improving the quality of products, clarifying the liabilities for product quality, protecting the legitimate rights and interests of consumers and safeguarding the social

and economic order.

 

Article 2

   

The law applies to all production and marketing activities within the territory of the People's Republic of China.

 

Products mentioned in the law are referred to products processed and manufactured for the

purpose of marketing.

 

This law is not applicable to construction projects. However, the construction materials,

structural components and fittings and equipment that fall within the category as provided in the

previous paragraph shall be governed by this law.

 

Article 3

   

Producers and sellers shall have their own proper regulations for the management of product

quality, rigorously implementing post-oriented quality regulations, quality liabilities and

relevant measures for their assessment.

 

Article 4

   

Producers and sellers are responsible for the product quality according to the provisions of

the law.

 

Article 5

   

It is forbidden to forge or infringe upon quality marks such as certification marks and marks for fine quality products; it is forbidden to forge the place of origin, forge or infringe upon the factory names, factory addresses; it is forbidden to produce or market adulterated products or to use fake goods as genuine or sub-standard products as standard.

 

Article 6

   

The State encourages the use of scientific quality control methods and adoption of advanced science and technology by enterprises to make their products surpass the standards set by the various trades, the State standards and even international standards in their product quality and

awards units and individuals who have made outstanding achievements in quality control and in bringing the product quality up to the advanced international levels.

 

Article 7

   

The people's government at all levels shall ensure the implementation of this law by incorporating the improvement of product quality into their plans for national economy and social development, reinforcing the integrated planning and organization regarding product quality, guiding, supervising and urging the producers and sellers to reinforce the management of product quality and improve the quality of products, organizing relevant departments to lawfully taking measures for stopping those acts that violate this law in the process of product production and product selling.

 

Article 8

   

The product quality supervision and administration departments of the State Council are responsible for the supervision and administration of the quality of products of the whole country. All relevant departments of the State Council shall be responsible for the supervision

of product quality within their own functions and duties.

 

Local administrations for the supervision of product quality at and above the county level are responsible for the supervision of product quality within their own administrative jurisdictions. The relevant departments of the local people's governments at and above the county

level are responsible for the product quality within their respective functions and duties.

 

If there are different provisions concerning the supervision departments of product quality,

such provisions shall be applied.

 

Article 9

   

The staff members of the people's governments at all levels and other state organs may not abuse their power, neglect their duties or misconduct to seek private interests, cover up or giveloose to the acts violating this law that occurs within the locality or within the industry, hinder or meddle with the investigation of acts violating this law that occurred in the process of the producing or selling products.

 

Where any of the local people's governments or other state organs covers up or give loose to the violations of this law that occurred in the production or selling of products, the person who is held to be mainly responsible shall take legal liabilities.

 

Article 10

   

Any entity or individual is entitled to report to the product quality supervision administrations or other relevant departments about any of the acts violating this law.

 

The product quality supervision department and relevant departments shall hold all information about the reporter as confidential and give awards to the reporter in accordance with the provisions of the province, autonomous region or municipality directly under the Central

Government.

 

Article 11

   

No entity or individual may prevent any of the qualified products produced outside of the region or trade from entering the region or trade.

 

Chapter II Supervision and Control of Product Quality

 

Article 12

   

Quality of products shall pass standard examinations and no sub-standard products shall be

used as standard ones.

 

Article 13

   

Industrial products which may be hazardous to the health of the people and the safety of lives and property shall conform to the State and trade standards for ensuring the health of the human body and safety of lives and property. In absence of such State or trade standards, the

products shall conform to the minimum requirements for ensuring the health of the human body and the safety of lives and property.

 

It shall be prohibited to produce or sell industrial products that do not come to the requirements and demands for physical health and safety of body and property. The specific measures for management will be enacted by the State Council.

 

Article 14

    

The State shall institute the system for certifying quality control system of enterprises according to the quality control standards commonly accepted internationally. Enterprises may apply voluntarily for certification of their quality control systems with the product quality supervision and control departments under the State Council or quality certification

organizations recognized by the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises shall be issued with the certificates for the quality control systems.

 

The State shall institute the system for certifying the product quality in reference to the internationally advanced product quality standards and technical requirements. Enterprises may apply voluntarily for certification of the quality of their products with the product quality supervision and control departments under the State Council or quality certification organizations recognized by the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises shall be issued with the certificates for product quality and are allowed to use quality certification marks on the products or on the packages of their products.

 

Article 15

   

An supervision and inspection system based on random inspection is implemented by the state to test those products that may injure physical health or the safety of body or property, those important industrial products that have a great bearing on the national economy and those products that have been reported by consumers or relevant organizations as to be defective in quality. The samples shall be randomly taken from the market or the products stored in the warehouse of the enterprise for sale. The supervision and inspection shall be planned and organized by the product quality supervision administrations of the State Council. The local administrations for product quality supervision on and above the county level may organize and supervise sample tests. Where there are different provisions concerning the supervision and inspection, such provisions shall be applied.

 

The products supervised and inspected by the state administrations shall be not resupervised and reinspected by the local administrations; the products supervised and inspected by the administration on a higher level shall be not reinspected by that on a lower level.

 

Products may be tested according to the demand of supervision and random inspection. The quantity of samples for random sample test shall not be bigger than that is reasonably needed, and no fees may be collected from the person under supervision and inspection. The expenses for

supervision and random inspection shall be covered in according to the provisions of the State Council.

 

Where the producer or seller refuses to accept the results of sample test, he may apply to the product quality supervision departments on the higher level within 15 days from the day he receives the results for reexamination. The reexamination conclusion shall be made by the product

quality department that does the reexamination.

 

Article 16

   

No producer or seller may reject any supervision or inspection of product quality that is lawfully carried out.

 

Article 17

   

Where any product is found to be unqualified by any supervision and inspection that is carried out according to this law, the producer or seller shall be ordered to make corrections within the time limit by the product quality supervision administration that carries out the supervision and inspection. Where the producer or seller fails to make corrections within the time limit, he shall be publicized by the product quality supervision administration of the people's government on or above the provincial level; if the product quality is still not

qualified after reexamination, the producer or seller shall be ordered to suspend business for rectifications within the time limit; if the product quality is still proved unqualified by reexamination after the period for rectifications, the business license of the producer or seller shall be canceled.

 

If the products are proved to be seriously unqualified by sample test, penalty be given according to the provisions of Chapter Five of this law.

 

Article 18

   

Product quality supervision administrations at and above the county level may exercise, when investigating acts violating this law according to the evidence acquired concerning the act suspected of violating the law or according to reports, the following powers:

 

(1) conduct on-spot inspection over the site where the parties concerned are suspected of committing production or sale activities as against the provisions of this law;

 

(2) inquire the legal representative, main leaders and other relevant personnel about information relevant to the suspected activities of production and sale violating this law;

 

(3) read and copy contracts, invoices, account books and other materials connected with the parties concerned;

 

(4) close down or detain any product that they have good reason to deem as not meeting the national standards or trade standards for ensuring physical health and the safety of body and property, any products that have other serious defects and raw subsidiary materials, wrappings, tools directly used for production or sale of products.

 

The administrations at and above the county level may, when investigating activities suspected of violating this law within the functions as stipulated by the State Council, exercise the powers as mentioned in the previous paragraph.

 

Article 19

   

Product quality testing organizations shall have the corresponding testing facilities and capabilities and shall conduct product quality testing only after the examination and approval of the quality supervision and control departments under the people's governments at and above the provincial level or of the organizations they have authorized. If there are separate provisions

by other laws or administrative decrees, the relevant laws or administrative decrees shall apply.

 

Article 20

   

Social intermediary institutions engaging in the test and certification of product quality shall be established in conformity with the law and shall not be subordinate to or have any other interest with any administrative organs or state organs.

 

Article 21

   

Product quality testing and certification institutions shall make objective and fair conclusions or certifications in accordance with the law and relevant criteria.

 

Product quality certification institutions shall, in accordance with the provisions of the state, make track-up tests about the products that have been allowed to use certification marks.

 

If any product fails to meet the certification requirements, the institutions shall order the producers or sellers to make mend up; if the circumstances are serious, the institutions shall repeal the qualifications for using certification marks

 

Article 22

   

Consumers have the right to inquire about the quality problems of products with producers or sellers of the products, to complain about product quality to the product quality supervision administrations or the administrations for industry and commerce or other relevant departments.

The relevant departments accepting complaints shall be responsible for handling the matters.

 

Article 23

   

Social organizations for protecting the rights and interests of consumers may propose to relevant departments to handle matters concerning the complaints by consumers about product quality and give aid to consumers to sue producers whose products have caused damages.

 

Article 24

   

The product quality supervision administrations under the State Council and the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall publicize regularly the quality situation of the products that they have tested

on the random basis.

 

Article 25

   

Product quality supervision administrations and other state organs as well as product quality testing institutions may not make recommendations of the producers' products, nor may they engage in the product management by means of supervising the production or sale of products.

 

Chapter III Responsibilities and Obligations of Producers and Sellers

 

Section 1 Responsibilities and Obligations of Producers for the Quality of Products

 

Article 26

   

Producers shall be responsible for the quality of products they produce.

 

Quality of products shall meet the following requirements:

 

(1) Products shall be free from any irrational dangers threatening the safety of people and property. If there are State standards or trade standards for ensuring the health of the human body and safety of lives and property, the products shall conform to such standards.

 

(2) Products shall have the property they are due to have, except cases in which there are explanations about the defects of the property of the products.

 

(3) Products shall tally with the standards prescribed or specified on the packages and with the quality specified in the instructions for use or shown in the providing samples.

 

Article 27

   

The marks on the products or the package of products shall be true to the fact and satisfy

the following requirements:

 

(1) including a certificate of quality inspection;

 

(2) including the name of product and the name and addresses of producer in the Chinese language;

 

(3) If, according to the characteristics and requirements for use, the specification, grades or the names and contents of the major ingredients are required to be specified, they shall be specified clearly in Chinese; if it is required to inform consumers in advance, it shall be marked on the outer package or relevant materials shall be provided to consumers in advance;

 

(4) Products which have a time limit for use, the date of production or the period for safe use or the date of losing effect shall be specified clearly in a conspicuous position of the product;

 

(5) Products which may cause harm to the human body or injure the safety of body and property due to improper use shall carry warning marks or warnings written in Chinese.

 

Unpacked food or other products which are hard to be packed according to the characteristics of products may not have marks attached.

 

 

Article 28

   

For products which are easily broken, inflammable, explosive, toxic, erosive or radioactive and products that cannot be handled upside down in the process of storage or transportation or for which there are other special requirements, the package thereof shall meet the corresponding requirements, carry warning marks or warnings written in Chinese or points of attention in handling in accordance with the relevant provisions of the state.

 

Article 29

   

Producers are forbidden to produce products eliminated according to State laws or decrees.

 

Article 30

   

Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

 

Article 31

   

Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

 

Article 32

   

Producers shall not adulterate their products or pose fake products as genuine or shoddy products as good or non-standard products as standard. Responsibilities and obligations of sellers with regard to product quality.

 

Section 2 Responsibilities and Obligations of Sellers for the Quality of Products

 

Article 33

   

Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and other marks.

 

Article 34

   

Sellers shall adopt measures to maintain the quality of products for sale.

 

Article 35

   

Sellers may not sell any product that has been put into disuse by order of the state and therefore the sale of which has been prohibited or those that have lost effect or have deteriorated.

 

Article 36

   

The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

 

Article 37

   

Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

 

Article 38

   

Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

 

Article 39

   

Sellers are not allowed to adulterate the products for sale or pose fake ones as genuine or shoddy ones as good or sub-standard ones as standard.

 

Chapter IV Compensation for Damage

 

Article 40

   

Sellers shall be responsible for repair, replacement or return and compensate for the damages done to endusers or consumers if one of the following cases occurs:

 

(1) Products do not have the property for use it should have and there is no advance explanations;

 

(2) The quality of products does not conform to the standards or to the standards specified in the packages;

 

(3) The quality of products does not tally with the quality specified in the instruction for use or with the quality of samples provided.

 

After the sellers undertake the repairs, replacement, return or compensation for damages according to the provisions of the preceding paragraph, the sellers have the right to recover the losses from producers or suppliers if the responsibility rests with the producers or other marketers that provide the products.

 

If the sellers fail to perform the duty of repairing, replacing, returning or compensating for damages as provided in the first paragraph of this articles, the quality supervision and control departments or administrations for industry and commerce shall order them to correct.

 

If there are relevant provisions in the contracts for marketing or processing between producers, marketers or between producers and marketers, the parties to the contracts shall implement the provisions of the contracts.

 

Article 41

   

Producers shall be responsible for compensating for damages done to the person or property except the defective products themselves (hereinafter referred to as "property of others") due to the defects of products.

 

Producers shall not be held responsible if they can prove one of the following cases:

 

(1) The products have not been put into circulation;

 

(2) The defects are non-existent when the products are put into circulation;

 

(3) The defects cannot be found at the time of circulation due to scientific and technological reasons.

 

Article 42

   

Sellers shall be responsible for compensation if the damages caused to the property of others are caused by defects resulting from the fault on the part of sellers.

 

Sellers shall be responsible if they cannot identify the producers or suppliers of the defective products.

 

Article 43

   

If damages are done to the person or properties of others due to the defects of products, the victims may claim for compensation either from the producers or sellers. If the responsibility rests with the producers and the compensation is paid by the sellers, the sellers have the right to recover their losses from the producers. If the responsibility rests with the sellers and the compensation is paid by the producers, the producers have the right to recover their losses.

 

Article 44

   

If bodily injury is caused by the defect of products, the party responsible shall pay for medical expenses and nursing expenses during medical treatment, the lost income due to absence from work; if the bodily injury has resulted in disability, the party responsible shall also be responsible for the expenses for self-supporting equipment, living allowances, compensation of the disabled person and the living expenses necessary for those under the support of the disabled person; if death has resulted, the party responsible shall pay for the funeral expenses,

compensation and the living expenses necessary for those supported by the dead.

 

If the defect of product causes losses in property of the victims, the party shall be responsible for restoring or compensating for it. If the victims sustain other major losses, the party responsible shall compensate for the losses.

 

Article 45

   

The validity period for claiming for compensation for damages due to defects of products is two years, starting from the date when the parties concerned is notified or should have known the matter.

 

The right of request for compensation claim for damages done due to defects of products shall lose effect after the tenth year after the products shall lose effect after the tenth year after the products with defects that cause damages was first delivered to the users or consumers. However, cases in which the specified safe use period has not been exceeded are exceptions.

 

Article 46

   

Defects mentioned in the law are referred to the irrational dangers existing in the products

that threaten the safety of person or properties or products that do not conform to the standards set by the State or the specific trade if there is any.

 

 

Article 47

    If civil disputes occur from product quality, the parties concerned may settle their disputes

through consultation or mediation. If any party concerned refuses to settle the disputes through

consultation or mediation or consultation and mediation fail to settle the disputes, parties

concerned may, according to their agreement, apply for arbitration with arbitration

organizations. If the parties concerned fail to reach agreement on arbitration or if the

arbitration becomes void, the cases may be brought before the people's courts.

 

Article 48

   

Arbitration organizations or the people's courts may entrust the product quality supervision and control organizations provided for in Article 11 of this law to test the quality of products

concerned.

 

Chapter V Penalty Provisions

 

Article 49

   

An enterprise producing products that do not conform to the state standard or the specific trade standard for ensuring physical health and the safety of human body and property shall be ordered to stop production and sale; the products illegally produced and sold shall be confiscated; a fine less than three times the value of the products illegally produced or sold shall be imposed upon the producer or seller; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

 

Article 50

   

If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard ones as standard, it shall be ordered to stop production or selling; the products illegally produced or sold shall be confiscated and a fine of more than 50% but less than three times the value of the products illegally produced or sold shall be imposed; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked; if the case is serious enough to constitute a crime, criminal responsibilities shall be investigated.

 

Article 51

   

If an enterprise produces products clearly provided as being eliminated by the State, it shall be ordered to stop production and its products and illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the total amount of proceeds shall be imposed and, if necessary, the production license may be revoked.

 

Article 52

   

Any person selling products that have lost effect or deteriorated shall be ordered to stop the selling and the products for sale shall be confiscated and be fined an amount of less than two times the value of the products for illegal sale; where any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances are serious, the business license shall

be revoked. if the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

 

Article 53

   

If a producer or a seller is found to have fabricated the place of origin, fabricated or used without authorization the names and addresses of other producers, fabricated or used without authorization quality marks such as certification marks, it shall be ordered to make corrections and be fined an amount of not more than the total value of the products illegal produced or sold with the products illegally produced or sold being confiscated; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked.

 

Article 54

   

If the product marks of a producer do not conform to the provisions of Article 27 of this law, the producer shall be ordered to make corrections; If the product marks on the packages of products do not conform to the provisions of Article 27 (4) (5) and the case is serious enough, the producer or seller shall be ordered to stop the production or selling and be fined an amount of not more than 30% of the value of the products illegally produced or sold; if any illegal proceeds have occurred, such shall be confiscated.

 

Article 55

   

If the seller that sells the products which are prohibited from selling as provided in articles 49 to 53 of this law have sufficient evidence to prove that he does not know that the products had been prohibited from selling and truthfully reveals the source of products, he may be punished in a lenient way or be given a lesser punishment.

 

 

Article 56

   

Any person who rejects lawful product quality supervision and inspection shall be given a warning and be ordered to make corrections; if he refuses to make corrections, he shall be ordered to suspend business for rectifications; if the circumstances are extremely serious, the business license shall be revoked.

 

Article 57

   

Any product quality test institution or certification institution fabricates inspection results or issues false certificates shall be ordered to make corrections, and a fine of not less than 50,000 yuan but not more than 100,000 yuan shall be imposed upon the institution while a

fine of not less than 10,000 yuan but not more than 50,000 yuan be imposed upon the person-in-charge who is held to be directly responsible and other personnel who are held to be directly responsible; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances are serious, the institution shall be disqualified for inspection and certification; if the case is so serious as to have constituted a crime, criminal liability shall be investigated.

 

Any product quality test institution or product quality certification institution that produces unreal results that has led to losses shall be held responsible for making compensations; if the losses are great, they may be disqualified for testing and certification.

 

Where any product quality certification institution violates the provisions of article 21 (2) of this law by failing to demanding those producers or sellers whose product does not come up to the requirements of certifications yet use certification marks on their products to make corrections or failing to revoke their qualifications for using certification marks shall

undertake joint and several liabilities with the producers or sellers of the products; if the circumstances are serious, they shall be disqualified for certification.

 

Article 58

   

Where public organizations or public intermediary organizations makes promises or warranties concerning the quality of a product which, however, does not meet the requirements for such promises or warranties and which causes losses to consumers, they shall take several and joi liabilities with the producers and sellers.

 

Article 59

   

If the producer or seller falsely publicizes the quality of a product in advertisements so that consumers are cheated or mislead, he shall take legal liabilities according to the Advertising Law of the People's Republic of China.

 

Article 60

   

The subsidiary materials, packages, tools used by produced for producing those products as mentioned in articles 49 and 51 of this law or for producing inferior products in the name of superior products shall be confiscated.

 

Article 61

   

If any one clearly knows or should have known that a product is prohibited from production and selling by this law but still facilitates the transportation, safekeeping, storage, etc. or supplies the production technique for producing inferior products in the name of superior ones,

all the proceeds incurred from the transportation, safekeeping, storage or supply of production techniques for producing inferior products in the name of superior ones shall be confiscated and be fined an amount of not less than 50% but not more than 3 times of the illegal proceeds; if the case is so serious as to have constituted a crime, criminal liabilities shall be investigated.

 

Article 62

 

Where any business operator of the services industry uses any of the products which are prohibited by articles 49 to 52 of this law from selling into management services shall be ordered to stop using; if he clearly knows or should have known that the products he is using is prohibited from using by this law, he shall be punished in the same way as a seller considering the amount of the total value of the products used (including those already used and those not yet used).

 

Article 63

   

Any one who conceals, transfers, sells out or damages any of the things sealed up or detained by product quality supervision administrations or administrations for industry and commerce shall be fined an amount of not more than three time the value of the things concealed, transferred, sold out or damaged; if any illegal proceeds have occurred, such proceeds shall be confiscated.

 

Article 64

   

Any one who is held to make compensations and to pay a fine or forfeiture due to violation of this law but cannot afford to pay at the same time shall make compensations first.

 

Article 65

   

Where any of the staff member of the people's government at various levels or other state organs commits any of the acts as mentioned below shall be given an administrative punishment; if he has committed a crime, criminal liability shall be investigated:

 

(1) covers up or gives loose to any of the acts violating this law in the process of production or selling;

 

(2) divulges secret information to any of the parties involved in the production or selling activities as against this law so as to help him escape from investigation;

 

(3) disturbs or interferes with the investigation conducted by product quality supervision administrations or administrations for industry and commerce about the acts violating this law in the process of production or selling and thus causing serious consequences.

 

Article 66

   

If, in the process of product quality supervision by random tests, any product quality supervision administration demands more samples than lawfully stipulated or collects test fees from the parties concerned shall be ordered by the product quality supervision administration or supervision departments on a higher level to return them; if the circumstances are serious, the person-in-charge who is directly responsible and other personnel who are held to be directly

responsible shall be given administrative punishments.

 

Article 67

   

Where any product supervision administration or other state organ violates the provisions of article 25 of this law by recommending to the public any of the producer's products or is engaged in the product management by way of supervising the production or selling, it shall be ordered by the administration or supervision department on a higher level to make corrections and clears up ill effects; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances are serious, the person-in-charge who is directly responsible and other personnel who are held to be directly responsible shall be given an administrative punishment.

 

Any product quality test institution that has committed any of the illegal acts as mentioned in the previous paragraph shall be ordered by the product quality supervision administration to make corrections and clear up ill effects; if any illegal proceeds have occurred, such proceeds shall be confiscated together with a fine of not more than double the illegal proceeds; if the circumstances are serious, it shall be disqualified for quality inspection.

 

Article 68

   

If a government official engaging in product quality supervision and control is found to have abused his/her power or neglected his/her duties or sought personal gains and the case is serious enough to constitute a crime, criminal responsibility shall be affixed. If the case does not constitute a crime, administrative penalties shall be meted out.

 

Article 69

   

Any one who hinders by means of force or threat the personnel of the product quality supervision administrations or the administrations for industry and commerce from performing their duties according to law shall take criminal liabilities; any one who refuses to accept or hinders the performance of duties by means other than violence and threat shall be penalized by

the public security organs according to the relevant provisions of the Regulations of the People's Republic of China on Punishments in Public Order and Security Administration.

 

Article 70

   

The administrative punishment of revoking business licenses as provided in this law shall be subject to the decision of the administrations for industry and commerce. The administrative punishments as provided in articles 49 to 57, 60 to 63 of this law shall be subject to the decisions of the product quality supervision administrations or the administrations for industry and commerce within their respective functions determined by the State Council. Where there are different provisions in laws or regulations on exercising the power of giving administrative punishments, such provisions shall be applied.

 

Article 71

   

Products that have been confiscated in accordance with this law shall be destroyed or burned

in accordance with the relevant provisions of the state or be disposed of by other means.

 

Article 72

   

The value of products as mentioned in articles 49 to 54, 62 and 63 shall be calculated on the basis of the marked price of the products illegally produced or sold; where there are no marked prices, it shall be calculated according to the market prices of the similar products.

 

Chapter VI Supplementary Provisions

 

Article 73

   

The provisions on the supervision and control of the quality of military products shall be formulated separately by the State Council and the Central Military Commission.

 

If there are different provisions in laws or administrative regulations concerning the compensation of losses caused by nuclear establishments or products, such provisions shall be applied.

 

Article 74

   

This law shall come into effect as of September 1, 1993.

 

 

 

 

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