Law of the People’s Republic of China on Administrative Licensing (Revised in 2019)
Promulgation Authorities: Standing Committee of the National People’s Congress
Release Date: 2019-04-23
Effective Date: 2019-04-23
Article 1 This Law is formulated in accordance with the Constitution to standardise establishment and implementation of administrative licensing, protect the legal rights and interests of citizens, legal persons and other organisations, safeguard public interest and social order, and ensure efficient supervision by administrative authorities.
Article 2 “Administrative licensing” mentioned hereinafter shall refer to the conduct of granting permission to citizens, legal persons or other organisations for undertaking of specific activities in accordance with their applications and upon an examination in accordance with laws by administrative authorities.
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 any administrative authority of personnel, finance and foreign affairs etc of other authorities or direct subordinate institutions of the said administrative authority.
Article 4 Establishment and implementation of administrative licensing shall be handled in accordance with statutory authority, scope, conditions and procedures.
Article 5 Establishment and implementation of administrative licensing shall adhere to the principles of transparency, fairness, equitableness and non-discrimination.The relevant provisions on administrative licensing shall be announced; provisions which are not announced shall not serve as the basis for implementation of administrative licensing. The implementation and outcome of administrative licensing shall be made public, except where State secrets, commercial secrets or personal privacy are involved. Without the consent of the applicant, the administrative agency and its staff, persons participating in expert review etc shall not disclose commercial secrets, undisclosed information or confidential business information submitted by the applicant, unless otherwise stipulated by the laws or where national security or significant public interest is involved; where the administrative agency announces the aforesaid information of the applicant pursuant to the law, the applicant shall be allowed to raise an objection within a reasonable period.
An applicant who satisfies the statutory criteria and standards shall have equal rights to obtain administrative licensing pursuant to the law, the administrative agency shall not discriminate against any one.
Article 6 Implementation of administrative licensing shall comply with the principles of convenience for the people, improved efficiency and provision of quality service.
Article 7 Citizens, legal persons or other organisations shall have the right to make statements regarding the implementation of administrative licensing by administrative authorities and the right to defend themselves. They shall also have the right to apply for administrative review or initiate administrative litigation in accordance with laws. Where such legal rights and interests are infringed in the event of violation of laws by any administrative authority in the implementation of administrative licensing, compensation may be sought in accordance with laws.
Article 8 Administrative licenses granted to citizens, legal persons or other organisations in accordance with laws shall be protected by the laws, and no administrative authority may alter a valid administrative license without authorisation.Where the laws, rules and regulations based upon by administrative licensing are revised or repealed, or where there has been a significant change in the circumstances under which administrative licenses were granted, the administrative authority may alter or revoke such administrative licenses in view of public interest and in accordance with laws. Where such alteration or revocation causes a citizen, legal person or other organisation to suffer financial losses, the administrative authority may grant compensation in accordance with laws.
Article 9 Administrative licenses obtained in accordance with laws shall not be transferred, except where laws or regulations provide for such transfer under special circumstances and procedures.
Article 10 The people’s governments at county level and above shall establish and develop a supervisory system for implementation of administrative licensing by administrative authorities, and strengthen supervision and inspection of the implementation of administrative licensing by administrative authorities.Administrative authorities shall implement effective supervision of citizens, legal persons and other organisations engaging in activities relating to administrative licenses.
Chapter 2 Establishment of Administrative Licensing
Article 11 Establishment of administrative licensing shall be consistent with economic and social development, beneficial to encouragement of positive development and initiative of citizens, legal persons and other organisations, safeguard public interest and social order, and promote the integrated development of the economy, society and ecological environment.
Article 12 Administrative licensing may be established for any of the following matters:
(1) matters relating directly to State security, public safety, macro-economic control, ecological environmental protection or specific activities relating directly to personal health and security of life and property, for which approval shall be obtained in accordance with statutory requirements;
(2) matters relating to development and exploitation of limited natural resources, distribution of public resources and matters relating directly to the approval of market access of specific industries in view of public interest, for which specific rights shall be obtained;
(3) matters relating to professions and industries providing public services and of direct relation to public interest, and matters relating to determination of qualifications which require specific credentials, conditions and technical skills;
(4) matters relating directly to important equipment, facilities, products and goods for public safety, personal health, security of life and property, for which examination shall be conducted in the form of inspection, test or quarantine in accordance with technical standards and norms;
(5) matters relating to the establishment etc. of enterprises or other such organisations, for which qualifications of the principal entities require confirmation; and
(6) any other matters for which administrative licensing may be established in accordance with provisions of laws or administrative regulations.
Article 13 Administrative licensing may not be established for matters listed in Article 12 where such matters can be regulated by the following methods:
(1) where citizens, legal persons or other organisations are capable of independent decisions;
(2) where the market competition mechanism is capable of effective regulation;
(3) where trade organisations or intermediary organisations are capable of self-regulated management; and
(4) where the administrative authority is capable of solving the problem by way of post-supervision or other administrative measures.
Article 14 Administrative licensing may be established by laws for matters listed in Article 12. Where no laws have been formulated, administrative regulations may be used to establish administrative licensing.Where necessary, administrative licensing can be established by the State Council by way of announcement of a decision. With the exception of provisional administrative licensing, the State Council shall submit a proposal promptly to the National People’s Congress and its Standing Committee upon implementation for the formulation of a law or proceed to formulate the administrative regulations directly.
Article 15 Where no laws or administrative regulations have been formulated for establishment of administrative licensing for matters listed in Article 12, local rules may be used to establish administrative licensing. Where no laws, administrative regulations or local rules have been formulated and where administrative licensing must be implemented immediately due to administrative requirements, the government rules of the people’s governments of provinces, autonomous regions or centrally administered municipalities may be used to establish provisional administrative licensing. Where provisional administrative licensing has been implemented for a full year and requires a renewal, a proposal shall be submitted to the local People’s Congress and its Standing Committee for the formulation of local rules.Local rules and government rules of the people’s governments of provinces, autonomous regions and centrally administered municipalities shall not be used to establish administrative licensing which requires unified confirmation of the qualifications of citizens, legal persons or other organisations by the State, or for confirmation of registration or preliminary licensing in relation to establishment of enterprises or other organisations. Such administrative licensing established by local rules and government rules shall not restrict individuals or enterprises from other administrative regions engaging in production and operation or provision of services within its jurisdiction, or importation of products from other administrative regions into the local market under its jurisdiction.
Article 16 Administrative regulations may make specific provisions for implementation of administrative licensing in accordance with the scope of administrative licensing established by laws.Local rules may make specific provisions for implementation of administrative licensing in accordance with the scope of administrative licensing established by laws and administrative regulations.
Governmental rules may be used to make specific provisions for implementation of administrative licensing in accordance with the scope of superior laws on establishment of administrative licensing.
Specific provisions made under rules and regulations on implementation of superior laws governing the establishment of administrative licensing shall not create additional administrative licensing. Specific provisions for administrative licensing requirements shall not establish other requirements which violate the superior laws.
Article 17 Except for the requirements stipulated in Article 14 and Article 15, administrative licensing shall not be required for other normative documents.
Article 18 Implementation authorities for administrative licensing, conditions, procedures and time limits shall be stipulated for establishment of administrative licensing.
Article 19 In the drafting of laws, rules or regulations of the people’s governments of provinces, autonomous regions or centrally administered municipalities for establishment of administrative licensing, the drafting authority shall hold a hearing or discussion to collect suggestions and inform the formulating authority of the imperativeness of the establishment of administrative licensing, possible economic and social effects thereupon and those suggestions collected.
Article 20 Authorities in charge of establishment of administrative licensing shall conduct regular appraisal of the establishment of administrative licensing. Where the authorities in charge of establishment of administrative licensing are of the opinion that a prevailing administrative licensing may be resolved through one of the methods stipulated in Article 13, the provisions on establishment of such administrative licensing shall be promptly revised or repealed.Authorities in charge of implementation of administrative licensing may conduct appraisals of implementation conditions of prevailing administrative licensing promptly and provide feedback to the relevant authorities in charge of establishment of administrative licensing.
Citizens, legal persons and other organisations may submit suggestions and recommendations relating to the granting and implementation of administrative licensing to the authorities in charge of granting and implementation of administrative licensing.
Article 21 Where the people’s government of a province, autonomous region or centrally administered municipality is of the opinion that an administrative licensing relating to economic affairs established under administrative regulations may be resolved through one of the methods stipulated in Article 13 subject to economic and social development conditions of the locality, the implementation of such administrative licensing in the locality may be terminated upon approval from the State Council.
Chapter 3 Implementation Authorities for Administrative Licensing
Article 22 Administrative licensing shall be implemented by administrative authorities with administrative licensing authority within their powers of office.
Article 23 Organisations responsible for the management of public affairs and authorised by laws or regulations shall implement administrative licensing in their own name within the scope of their authority. Authorised organisations shall be subject to the provisions of this Law governing the administrative authorities.
Article 24 Administrative authorities may commission other administrative authorities to implement administrative licensing in accordance with the scope of their authority and subject to the provisions of laws, rules and regulations. The commissioning administrative authority shall make a public announcement of the commissioned administrative authority and the scope of commissioned implementation of administrative licensing.The commissioning administrative authority shall be responsible for supervision of the conduct of the commissioned administrative authority in the implementation of administrative licensing, and shall be liable for the consequences of such conduct.
Commissioned administrative authorities shall implement administrative licensing in the name of the commissioning administrative authority in accordance with the scope of commission. Commissioned administrative authorities must not commission other organisations or individuals to implement the commissioned administrative licensing.
Article 25 Upon approval from the State Council, the people’s governments of provinces, autonomous regions and centrally administered municipalities may appoint an administrative authority to exercise the administrative licensing authority on their behalf in accordance with the principles of simplicity, uniformity and efficiency.
Article 26 In the event of an administrative licensing application being processed by several organisations established within the administrative authority, the administrative authority shall appoint one of such organisations to accept the applications and deliver the decision in a unified manner.In the event of administrative licensing being implemented separately by two or more departments of a local people’s government in accordance with laws, the people’s government shall appoint a department to accept administrative licensing applications and forward the applications to the relevant departments for comment before processing the applications in a unified manner or organise the relevant departments to process the applications jointly in a unified manner.
Article 27 Administrative authorities shall not make improper requests such as asking the applicants to purchase designated products or make payment for services in the course of implementation of administrative licensing.Officers of administrative authorities responsible for processing of administrative licensing applications shall not extort or accept money or goods from applicants or seek any other benefits.
Article 28 Inspection, examination and quarantine of equipment, facilities, products and goods relating directly to public safety, personal health and security of life and property shall be implemented progressively by specific technical organisations which qualify under statutory requirements, unless the laws and administrative regulations stipulate implementation by administrative authorities. The specific technical organisations and their personnel shall be liable for the outcome of their inspection, examination and quarantine.
Chapter 4 Implementation Process for Administrative Licensing
Section 1 Submission and Acceptance of Applications
Article 29 Citizens, legal persons or other organisations engaging in specific activities which require administrative licensing in accordance with laws shall apply to the administrative authority for an administrative license. Administrative authorities shall provide applicants with the standard application form where the application is required to be made in such standard form. The application shall not contain any content which is irrelevant to the administrative licensing application.Applicants may commission an agent to apply for an administrative license, unless the law requires the applicants to submit their application personally at the office of the administrative authority.
Administrative licensing applications may be submitted by post, telegram, telex, facsimile, electronic data exchange, e-mail etc.
Article 30 Administrative authorities shall display a catalogue of information on subject matters, bases, requirements, quantities, procedures, deadlines etc in relation to administrative licensing applications and documents to be submitted as stipulated by laws, rules and regulations and the standard application form.Administrative authorities shall provide explanation and accurate reliable information in respond to requests from applicants for clarification and explanation of the displayed catalogue.
Article 31 Applicants for administrative licensing shall provide the administrative authority with relevant materials and true and accurate information. Applicants shall be accountable for the veracity of the contents of application documents. Administrative authorities shall not request for applicants to provide technical information and other materials irrelevant to the subject of administrative licensing application.The administrative agency and its staff shall not set technology transfer as a condition for granting administrative licensing; shall not make direct or indirect request of technology transfer in the course of implementation of administrative licensing.
Article 32 Administrative authorities shall process administrative licensing applications submitted by applicants in accordance with the following provisions:
(1) where administrative licensing is not required for the subject of application, the applicant shall be informed promptly of non-acceptance of the application;
(2) where the subject of application do not fall within the scope of the function and power of the administrative authority, a decision for non-acceptance of the application shall be made promptly, and the applicant shall be directed to the relevant administrative authority for the application;
(3) where there is a mistake in the application documents which may be corrected on the spot, the applicant shall be allowed to make correction on the spot;
(4) where the application documents are incomplete or not in the standard form, the applicant shall be asked to supplement the information or make correction at the time of submission or within 5 days from submission; where the applicant is not informed within the time limit, the application shall be deemed to have been accepted from the date of receipt of the application; and
(5) where the subject of application falls within the scope of the functions and powers of the administrative authority and the application documents are complete and made in the standard form or where the applicant has submitted the supplementary and corrected application documents requested by the administrative authority, the administrative licensing application shall be accepted.The administrative authority shall issue a certificate in writing, dated and affixed with the seal of the administrative authority regardless if the application is accepted or rejected.
Article 33 Administrative authorities shall establish and improve the relevant systems for electronic administration, publish administrative licensing matters on the administrative authority’s website and facilitate electronic submission of administrative licensing applications by applicants. Administrative authorities shall share relevant administrative licensing information with other administrative authorities for the purpose of improving work efficiency.
Section 2 Examination and Decision
Article 34 Administrative authorities shall examine application documents submitted by applicants.Where the applicant has submitted complete application documents made in the standard form and the administrative authority is capable of making a decision on the spot, the administrative authority shall issue a decision in writing on the spot in respect of the administrative licensing application.
Where the contents of application documents require verification in accordance with statutory requirements and procedures, the administrative authority shall appoint 2 or more officers to carry out such verification.
Article 35 Where an administrative licensing application requires examination by a subordinate administrative authority prior to submission to the superior administrative authority for a decision in accordance with laws, the subordinate administrative authority shall submit its preliminary examination opinion and complete application documents directly to the superior administrative authority. The superior administrative authority shall not request for applicants to re-submit application documents.
Article 36 Administrative authorities which discovered that the subject of administrative licensing involve significant interests of other parties in the course of examination of the administrative licensing application shall inform such affected parties. The applicant and affected parties shall have the right to state their views and argue in their own defence. The administrative authority shall consider the opinions of the applicant and affected parties.
Article 37 Except for decisions on administrative licensing made on the spot, administrative authorities shall decide on administrative licensing applications within a stipulated time limit and in accordance with statutory procedures following examination of the applications.
Article 38 Administrative authorities shall issue an approval decision in writing for administrative licensing applications which satisfy statutory requirements and standards in accordance with laws.Administrative authorities issuing a rejection decision in writing shall indicate the reason(s) for the rejection and inform the applicant of their right to apply for administrative review or to initiate administrative litigation in accordance with laws.
Article 39 Administrative authorities issuing an approval decision for administrative licensing shall issue one of the following administrative licensing certificates affixed with the seal of the administrative authority:
(1) permit, license or other forms of certificates;
(2) qualification certificate, credentials or other certification;
(3) approval document or certificate issued by the administrative authority; and
(4) any other administrative licenses stipulated by laws and regulations.Administrative authorities conducting inspection, examination or quarantine may attach a label or affix a seal to the equipment, facilities, products or goods which have passed inspection, examination or quarantine.
Article 40 Decisions made by the administrative authority to grant administrative licensing shall be announced and the public shall have the right to view the decisions.
Article 41 Where the scope of an administrative licensing established under laws or administrative regulations is not restricted to any particular area, the administrative license granted to the applicant shall be valid nation-wide.
Article 42 Except for administrative licensing decisions made on the spot, administrative authorities shall decide on an administrative licensing application within 20 days from acceptance of the application. Where a decision cannot be made within 20 days, the period may be extended for another 10 days with the approval of the person-in-charge of the administrative authority, and the applicant shall be informed of the reasons for extension. Where the laws or regulations provide otherwise, such provisions shall prevail.Where an administrative licensing application is processed in a unified manner or jointly and collectively in accordance with the provisions of Article 26, the processing shall be completed within 45 days. Where the processing cannot be completed within 45 days, the period may be extended for another 15 days with the approval of the person-in-charge of the people’s government at the corresponding level, and the applicant shall be informed of the reasons for extension.
Article 43 Where an administrative licensing application is required to be examined by a subordinate administrative authority prior to submission to a superior administrative authority for decision in accordance with laws, the subordinate administrative authority shall complete examination of the administrative licensing application within 20 days from acceptance of the application. Where the laws or regulations provide otherwise, such provisions shall prevail.
Article 44 Administrative authorities shall issue and despatch an administrative license to the applicant or attach a label or affix an inspection, examination or quarantine seal within 10 days from the decision to grant administrative licensing.
Article 45 Where a hearing, tendering, auction, inspection, examination, quarantine, evaluation or expert appraisal and examination is required following the decision of the administrative authority on administrative licensing, the required time shall be excluded from the time limits stipulated in this section. The administrative authority shall inform the applicant in writing of the time required.
Article 46 Where a hearing is required in accordance with laws, rules or regulations for matters relating to implementation of administrative licensing or where the administrative authority is of the opinion that a hearing is required for important administrative licensing matters relating to public interest, the administrative authority shall make a public announcement of the hearing prior to such hearing.
Article 47 For administrative licensing applications which involve significant interests of the applicant and other parties, the administrative authority shall, prior to making a decision on administrative licensing, inform the applicant and other affected parties of their rights to request for a hearing. The administrative authority shall organise a hearing within 20 days from acceptance of an application by the applicant or the affected parties within 5 days from being informed of their rights to a hearing.Applicants and affected parties shall not be liable for costs of the hearing organised by the administrative authority.
Article 48 Hearings shall be conducted in accordance with the following procedures:
(1) the administrative authority shall inform the applicant and the affected parties of the time and location of the hearing 7 days in advance of the hearing, and make public announcements where necessary;
(2) hearings shall be conducted openly;
(3) the administrative authority shall appoint an officer who is not involved in examination of administrative licensing applications to chair the hearing; an applicant or affected party who is of the opinion that the chairperson has a direct conflict of interest with the subject administrative licensing matter shall have the right to request for withdrawal of the chairperson;
(4) officers responsible for examination of the subject administrative licensing application shall provide evidence and reasons for their examination opinion for the hearing, and the applicant or the affected parties may submit evidence to argue in their own defence and engage in cross examination; and
(5) minutes shall be taken during the hearing, and all parties participating in the hearing shall review the minutes for accuracy before signing or affixing their seal on the minutes.The administrative authority shall use the minutes of the hearing as a basis for decision on such administrative licensing applications.
Section 5 Alterations and Renewals
Article 49 Administrative licensees requesting for amendment(s) to an administrative license shall apply to the original administrative authority which has granted the administrative license. The administrative authority shall process the amendment(s) in accordance with laws where the application satisfies statutory requirements and standards.
Article 50 Administrative licensee requesting for renewal of an administrative license shall apply to the original administrative authority which has granted the administrative license 30 days in advance of the expiry of the administrative license. Where the laws or regulations provide otherwise, such provisions shall prevail.Administrative authorities shall decide on grant of renewal based on the licensee’s application submitted in advance of the expiry of the administrative license. Where the administrative authority does not make a decision before the expiry date of the administrative license, renewal shall be deemed as granted.
Article 51 The provisions of this Section shall apply to implementation of administrative licensing. Other provisions of this Chapter shall apply to matters not covered by provisions of this Section.
Article 52 The procedures for implementation of administrative licensing by the State Council shall be subject to the provisions of relevant laws and administrative regulations.
Article 53 Administrative licensing for matters set out in Item (2) of Article 12 shall be decided by the administrative authority through tender, auction or other methods of fair competition. Where the laws or regulations provide otherwise, such provisions shall prevail.Specific decision-making procedures for administrative licensing through tender, auction or other methods shall be stipulated by relevant laws and administrative regulations.
Upon award of tender or winning bid to the successful bidder or buyer in accordance with the tender or auction results, the administrative authority shall decide on grant of administrative licensing and issue an administrative license to the successful bidder or buyer in accordance with laws.
Where the failure of an administrative authority to conduct tender or auction or violation of tender or auction procedures is in breach of the provisions of this Article and damaging to the legal rights and interests of the applicant, the applicant may apply for administrative review or initiate administrative litigation in accordance with laws.
Article 54 State examination shall be held in accordance with laws for awarding of special credentials to citizens for administrative licensing matters set out under Item (3) of Article 12. The administrative authority shall decide on grant of administrative licensing in accordance with the examination results and other statutory requirements. In the event of award of special credentials or qualifications to legal persons or other organisations, the administrative authority shall decide on grant of administrative licensing in accordance with the results of assessment of composition of specialist staff, technical conditions, operational achievements and management standards of the applicant. Where the laws or regulations provide otherwise, such provisions shall prevail.Examination for confirmation of special credentials of citizens shall be established and conducted openly by administrative authorities or industrial organisations in accordance with laws. Prior to the examination, the administrative authorities or industrial organisations shall make public announcements of the registration requirements for the examination and the, format, subject content and outline of the examination. Provided that, the administrative authorities and industrial organisations shall not organise compulsory pre-examination training for accreditation examinations or stipulate teaching materials or other study-aid materials.
Article 55 Inspection, examination and quarantine shall be conducted in accordance with technical criteria and standards for administrative licensing matters set out under Item (4) of Article 12. Administrative authorities shall decide on administrative licensing in accordance with the results of the inspection, examination and quarantine.Administrative authority implementing inspection, examination or quarantine shall appoint 2 officers to conduct the inspection, examination or quarantine in accordance with technical criteria and standards. Where further technical analysis of the results of inspection, examination or quarantine is not required to determine if the equipment, facilities, products or goods satisfy the technical criteria or standards, the administrative authority shall decide on grant of administrative licensing on the spot.
Administrative authorities which decide against granting of administrative licensing in accordance with the results of inspection, examination or quarantine shall give a written explanation of the technical criteria and standards for which the decision is based upon.
Article 56 Administrative authorities shall grant registration on the spot for administrative licensing applications set out under Item (5) of Article 12 which are complete and comply with the statutory format. Where required, application documents shall be verified by administrative authorities in accordance with the provisions of Paragraph 3 of Article 34.
Article 57 Administrative authorities shall decide on administrative licensing in accordance with the order of acceptance of applications in the event of a quota and where there are two or more applications which satisfy statutory requirements and standards. Where the laws or regulations provide otherwise, such provisions shall prevail.
Chapter 5 Administrative Licensing Fees
Article 58 Administrative authorities shall not collect fees for implementation of administrative licensing and supervision and inspection of administrative licensing matters. Where the laws or regulations provide otherwise, such provisions shall prevail.Administrative authorities shall not collect fees for provision of standard application form for administrative licensing applications.
Funds needed by an administrative authority for implementation of administrative licensing shall be included in the budget of the administrative authority, and guaranteed and allocated by the treasury department of counterpart level in accordance with the approved budget.
Article 59 Fee collection by administrative authorities for implementation of administrative licensing in accordance with the provisions of laws and administrative regulations shall comply with statutory rates and fees items which are announced. Fees collected shall be turned over to the State treasury, and no authority or individual shall withhold, divert, appropriate or covertly appropriate such fees. The finance department shall not refund such fees to the administrative authority directly or covertly in any manner.
Chapter 6 Supervision and Inspection
Article 60 Superior administrative authorities shall reinforce supervision and inspection of the implementation of administrative licensing by subordinate administrative authorities, and promptly redress any misconduct in the implementation of administrative licensing.
Article 61 Administrative authorities shall establish and improve supervision systems, and conduct supervision by way of examination of relevant materials which reflect administrative licensing activities undertaken by licensees.Administrative authorities shall record the conditions and results of supervision and inspection in the course of implementing supervision and inspection of administrative licensing activities undertaken by licensees in accordance with laws. Supervision and inspection officials shall file such records after signing them. The public shall have the right to view the supervision and inspection records of administrative authorities.
Administrative authorities shall facilitate exchange of computer archives with licensees and other relevant administrative authorities for the purposes of conducting examination of the conditions of administrative licensing activities undertaken by licensees.
Article 62 Administrative authorities may conduct inspection, examination and tests on random samples of the products of licensees, and may conduct on-site inspection at production sites in accordance with laws. During inspection, the administrative authority may consult or request licensees to submit, relevant materials in accordance with laws and the licensees shall provide the relevant information and materials truthfully.Administrative authorities shall conduct regular examination of key equipment and facilities which involve matters of public safety, personal health and the security of life and property directly, in accordance with the provisions of laws and administrative regulations. A certificate shall be issued where the inspection is cleared.
Article 63 Administrative authorities shall not obstruct normal production and operational activities of licensees, extort or accept money or goods from licensees or seek any other benefit in the course of supervision and inspection.
Article 64.Licensees engaging in illegal administrative licensing activities outside the jurisdiction of the original administrative authority which has granted the administrative license shall be reported by the administrative authority at the place where the illegal activities are conducted to the original administrative authority which has granted the administrative license in accordance with laws.
Article 65 Individuals or organisations aware of any illegal administrative licensing activity shall have the right to report such activity to the administrative authority and the administrative authority shall promptly verify the situation and resolve the issues.
Article 66 Licensees which failed to perform the obligation of utilisation of natural resources or public resources in accordance with laws shall be ordered by the administrative authority to make correction by a stipulated deadline. Licensees which failed to make correction by the stipulated deadline shall be dealt with by the administrative authority in accordance with the provisions of relevant laws and administrative regulations.
Article 67 Licensees granted with an administrative license which relates directly to the approval for entrance to special industries involving public interest shall provide safe, convenient, stable and reasonably priced services to the users and perform service obligations in accordance with statutory standards for services and fees and the conditions stipulated by administrative authorities in accordance with laws. Business operations shall not be stopped or suspended without approval of the original administrative authority which has granted the administrative license.Licensees which do not perform their obligations as stipulated in the preceding paragraph shall be ordered by the administrative authority to make correction by a stipulated deadline. The administrative authority may take effective measures to supervise the performance of such obligations in accordance with laws.
Article 68 Administrative authorities shall supervise and promote the design, construction, installation and use of self-check system established by the users of key equipment and facilities which involve directly matters concerning public safety, personal health and the security of life and property.Administrative authority discovering a hidden danger in the course of supervision and inspection of key equipment or facilities which involve directly public safety, personal health or the security of life and property shall order that the construction, installation and use of such dangerous equipment or facilities be suspended and that the design, creation, installation and use be corrected immediately.
Article 69 Under any of the following circumstances, the original administrative authority which has granted the administrative license or the superior administrative authority may revoke the administrative license at the request of affected parties or in accordance with its powers of office:
(1) officers of the administrative authority have abused their powers of office or neglect their duties in making decisions on administrative licensing;
(2) officers of the administrative authority have decided on administrative licensing beyond their statutory powers of office;
(3) statutory procedures of decision-making for administrative licensing are violated;
(4) granting of administrative licenses to applicants which do not satisfy application criteria or applications which do not satisfy statutory requirements; and
(5) other circumstances in which the administrative license may be revoked in accordance with laws.Licensees guilty of using deception, bribery or any other improper means to obtain an administrative licence shall have their administrative license revoked.
Where the revocation of administrative licences stipulated in the preceding paragraphs may have a detrimental effect on public interest, the administrative license shall not be revoked.
Administrative authorities shall grant compensation in accordance with laws where the legal rights and interests of the licensee are damaged by the revocation of administrative license in accordance with the provisions of Paragraph 1 of this Article. The interests of licensees based on the administrative license shall not be protected in the event of revocation of the administrative license in accordance with the provisions of Paragraph 2 of this Article,
Article 70 Under any of the following circumstances, the administrative authority shall cancel the administrative license in accordance with laws:
(1) expiry of the administrative license and no application for renewal has been made;
(2) death or loss of capacity of a citizen who was granted credentials for the administrative license;
(3) termination of a legal person or an organisation in accordance with laws;
(4) expiry or withdrawal of the administrative license in accordance with laws or revocation of the administrative license in accordance with laws;
(5) the administrative license cannot be implemented due to occurrence of a force majeure event; and
(6) other circumstances in which the administrative license is to be cancelled in accordance with the provisions of laws and regulations.
Article 71 Where the establishment of administrative licensing is in violation of the provisions of Article 17, the relevant authority shall order the administration authority which has established the administrative licensing to make correction or revoke the administrative licensing in accordance with laws.
Article 72 Where an administrative agency and its staff violate the provisions of this Law in committing any of the following acts, the higher-level administrative agency or supervision agency shall order the offender to make correction; in serious cases, the directly accountable persons-in-charge and other directly accountable personnel shall be subject to administrative punishment pursuant to the law:
(1) does not accept an application for administrative licensing which satisfies the statutory criteria;
(2) does not announce the list of materials required by law to be announced at its office premises;
(3) does not perform statutory notification obligation towards an applicant or a stakeholder in the process of accepting, examining and deciding on the application for administrative licensing;
(4) does not notify the applicant in a one-off manner of all the contents to be supplemented or corrected when the application materials submitted by an applicant are incomplete or do not comply with the statutory format;
(5) violate the law in disclosing commercial secrets, undisclosed information or confidential business information submitted by an applicant;
(6) set technology transfer as a condition for granting administrative licensing; or make direct or indirect request of technology transfer in the course of implementation of administrative licensing;
(7) does not state pursuant to the law the reason for non-acceptance of an application for administrative licensing or non-approval for administrative licensing; or
(8) does not convene a hearing as required by the law.
Article 73 Officers of administrative authorities guilty of extorting or accepting money and goods from another party or seeking other benefits in the course of processing administrative licensing applications or implementation of supervision and inspection which constitutes a criminal offence shall be liable to prosecution for criminal liability in accordance with laws. Where the conduct does not constitute a criminal offence, an administrative sanction shall be imposed in accordance with laws.
Article 74 Under any of the following circumstances in the course of implementation of administrative licensing by administrative authorities, the superior administrative authority or supervising authority shall order for correction to be made, and impose administrative sanctions in accordance with laws on the person-in-charge and other officers directly responsible; where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws:
(1) granting of administrative licenses to applicants which do not satisfy statutory requirements or granting of administrative licenses beyond statutory powers of office;
(2) failure to grant administrative licenses to applicants which satisfy statutory requirements or failure to decide on administrative licensing applications within the statutory time limit; and
(3) failure to decide on administrative licensing applications based on the outcome of tender or auction or examination results in accordance with laws or failure to hold tender, auction or examination where the decision on administrative licensing applications is required to be based on the outcome of tender or auction or examination results.
Article 75 Where the fee collection by an administrative authority is unauthorised or do not comply with statutory rates and fee items in the course of implementation of administrative licensing, the superior administrative authority or supervising authority shall order that such fees be refunded. Administrative sanctions shall be imposed in accordance with laws on the person-in-charge and other officers directly responsible.Fees collected in accordance with laws in the course of implementation of administrative licensing which are withheld, diverted, appropriated or covertly appropriated shall be recovered. Administrative sanctions shall be imposed in accordance with laws on the person-in-charge and other officers directly responsible. Where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws.
Article 76 Where an administrative authority violates the law in the course of implementation of administrative licensing and causes damage to the legal rights and interests of the parties concerned, compensation shall be granted in accordance with the provisions of State laws on compensation.
Article 77 Where an administrative authority failed to perform supervision duties in accordance with law or failed to perform the supervision duties properly and thus resulting in serious consequences, the superior administrative authority or supervising authority shall order for correction to be made, and impose administrative sanctions in accordance with laws on the person-in-charge and other officers directly responsible. Where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws.
Article 78 Where an administrative licensing applicant is guilty of concealing relevant information or providing false materials in an administrative licensing application, the administrative authority shall not accept the application or grant administrative licensing, and issue a warning. Where the administrative licensing application involves directly matters concerning public safety, personal health or the security of life and property, the applicant shall not re-apply for such administrative licensing within a 1-year period.
Article 79 The administrative authority shall impose an administrative sanction in accordance with laws on a licensee guilty of obtaining an administrative license through deception, bribery or any other improper means. Where the administrative license involves directly matters concerning public safety, personal health or the security of life and property, the applicant shall not re-apply for such administrative licensing within a 3-year period. Where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws.
Article 80 Under any of the circumstances, the administrative authority shall impose an administrative sanction on the licensee in accordance with laws; where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws:
(1) the licensee is guilty of alteration, transfer, lease or lending of administrative license or illegal transfer of administrative license in any other way;
(2) the licensee engages in activities beyond the scope of the administrative license;
(3) the licensee is guilty of concealing information from or submitting false materials to the administrative authority in charge of supervision and inspection or refuses to submit accurate materials reflecting the activity conditions to the administrative authority; and
(4) any other illegal conducts stipulated by laws, rules or regulations.
Article 81 Administrative authorities shall take measures in accordance with laws to stop any citizen, legal person or an organisation engaging in activities without an administrative license required by the law from continuing such activities and shall impose an administrative sanction in accordance with laws. Where the conduct constitutes a criminal offence, criminal liability shall be pursued in accordance with laws.
Chapter 8 Supplementary Provisions
Article 82 The time limits for implementation of administrative licensing by administrative authorities as stipulated by this Law shall be calculated in working days and shall exclude statutory holidays.
Article 83 This Law shall be effective 1 July 2004.Regulations on administrative licensing existing prior to the promulgation of this Law shall be dealt with by the formulation authorities in accordance with the provisions of this Law. Prevailing regulations which are inconsistent with the provisions of this Law shall be repealed on the date on which this Law takes effect.