Laws of the People's Republic of China

No. 81

The Measures for the Administration on Authentication Training Institutions, which has been deliberated and adopted at the executive meeting of the General Administration of Quality Supervision, Inspection and Quarantine on August 31, 2005, is hereby promulgated and shall go into effect as of November 1 , 2005. Li Changjiang, the Director of the General Administration of Quality Supervision, Inspection and Quarantine

September 29, 2005

Measures for the Administration on Authentication Training Institutions Chapter I General Provisions

Article 1

With a view to intensifying the supervision and administration on authentication training institutions and regulating the authentication training activities, the present Measures are formulated according to the Administrative License Law of the People's Republic of China, the Regulations of the People's Republic of China on Authentication and Accreditation and the relevant provisions of the State Council.

Article 2

The term "authentication training institution" as mentioned in the present Measures refers to the organizations that undertake the basic training activities to those persons engaging in the authentication appraisal, audit, examination or any other authentication-related activity.

Article 3

The conducting of authentication training activities within the territory of the People's Republic of China shall be subject to the present Measures.

Article 4

The State Authentication and Accreditation Regulatory Commission (hereinafter referred to as the SCARC) shall be responsible for the uniform administration and supervision on the authentication training institutions and authentication training activities thereof.

The local quality and technology supervisory departments at all levels and the entry-exit inspection and quarantine institutions of all regions (hereinafter jointly referred to as the local authentication supervisory and administrative department) shall, in light of their respective functions, carry out supervision and inspection over the authentication training activities within their respective jurisdictions.

Article 5

The State encourages the accreditation training institutions to obtain the accreditation of accreditation institutions as authorized by the SCARC ((hereinafter referred to as the accreditation institutions) so as to guarantee the authentication training capacity on a continuous and stable basis.

Chapter II Conditions for Establishment and Procedures for Approval

Article 6

The establishment of any authentication training institution shall be subject to the approval of the SCARC and obtain the legal-person qualification before carrying out the authentication training activities within the approved scope.

Article 7

To establish a authentication training institution, the following conditions shall be met:

(1)

having fixed business place, necessary training and teaching facilities and working conditions;

(2)

having the registered capital not lower than RMB 200 thousand Yuan;

(3)

having four or more full-time teachers of the qualifications of registered training teachers, and having two or more full-time teachers for each course;

(4)

having the quality management system documents as required by the relevant authentication training institutions;

(5)

having self-owned or authorized, by relevant organizations, training courses on intellectual property rights; and

(6)

other conditions as required.

As for the establishment of a foreign-funded authentication training institution, the foreign investor shall, in addition to the above-mentioned conditions, obtain the professional authentication training qualification and authentication training authorization as provided for by laws of the country or region where the foreign investor is located, as well as the suitable teaching staff for authentication training authorization.

Article 8

The examination and approval procedures for the establishment of a authentication training institution shall be:

(1)

The applicant applying for the establishment of a authentication training institution (hereinafter referred to as the applicant) shall submit a written application and the relevant authentication materials to the SCARC;

(2)

The SCARC shall conduct a preliminary examination on those application materials as submitted by the applicant, and shall, within 5 days as of the day when the application materials are received, decide in written whether or not to accept the application;

(3)

The SCARC shall, as of the day when an application is accepted, examine and verify the virtual content of the application materials, and shall, within 20 days, decide whether or not to approve it. If it decides to approve the application, it shall issue a Notice on Approval of the Establishment of a Authentication Training Institution to the applicant; if it decides to disapprove the application, it shall notice the applicant of the result in written and make explanations; and

(4)

The applicant shall, upon the strength of the Notice on Approval of the Establishment of a Authentication Training Institution as issued by the SCARC, go through the relevant registration formalities in accordance with laws, and obtain a Letter on Approval of a Authentication Training Institution on the basis of the registration formalities.

The SCARC shall make public the list of those authentication training institutions established according to law.

Article 9

The valid period of a Letter on Approval of the Establishment of a Authentication Training Institution shall be four years.

Where a authentication training institution needs to extend the valid period of a Letter on Approval of the Establishment of a Authentication Training Institution, it shall file an application with the SCARC within 90 days before the expiration of the valid period.

Article 10

Any permanent representative office of an overseas authentication training institution as established within the territory of the People's Republic of China may, after the SCARC has put it on records in written, fulfill the business contacts, market research, technical exchange or other dissemination and generation activities. But it may not engage in the authentication training business operation.

Article 11

Where a authentication training institution intends to conduct the relevant training courses as subcontracted from overseas authentication training institutions or organizations, it shall be subject to the approval of the SCARC.

Article 12

The authentication institution, authentication training institution or authentication consulting institution may engage in the training activities of internal auditors within the approved scope. However, no authentication institution may conduct the training activities of internal auditors to the authentication consignor that has entrusted it for authentication.

The teachers of training internal auditors shall be of the qualifications of senior auditors or senior consultants.

Chapter III Behavior Criterions

Article 13

A authentication training institution shall, in light of the basic authentication training rules as well as the norms and rules for authentication training courses as provided for by the SCARC, engage in the authentication training activities.

As for a new authentication training field, where no uniform norm or rule for authentication training courses has been formulated the authentication training institution may set down the corresponding norms and rules for authentication training courses by itself.

Article 14

The authentication training institution shall publicize the information on the basic requirements for authentication training and the charging rate, and shall ensure the authenticity, accuracy and integrity of the information.

Article 15

The authentication training institution shall accomplish such basic procedures as the design of courses, management of courses, management of trainees, management of certificates and appraisal on management as provided for in the norms and rules for authentication training institutions and authentication training courses, and ensure the integrity, authenticity and effectiveness of authentication training activities, and shall not reduce or omit any authentication training procedure or content.

The authentication training institution shall make complete records of the authentication training process and keep them in archives.

Article 16

The authentication training institution shall establish the system for the management on training courses and the appraisal on training teachers suitable for the norms and rules for authentication training courses, and when necessary, may obtain the confirmation thereof by a authentication institution.

Article 17

The authentication training institution and its training teachers shall timely make a authentication training conclusion, and ensure the objectiveness and authenticity thereof.

Where a trainee meets the relevant requirements after authentication training, the authentication training institution shall issue a quality authentication training certificate to him; if he fails to meet the requirements, the authentication training institution shall notice him of the result and make explanations.

Article 18

The authentication training conclusion shall, after the training teacher affixes his name thereon, be signed by the person in-charge of or a person authorized by the authentication training institution.

The authentication training institution and its authentication training teachers shall be responsible for the authentication training conclusion.

Article 19

The authentication training institution shall supervise, monitor and appraise the effectiveness of its own authentication training activities, and shall conduct the examination and management review on the internal quality system at least once in 12 months.

The authentication training institution shall, before the end of January each year, submit a work report of the previous year respectively to the SCARC and the local authentication supervisory and administrative department.

Article 20

Under any of the following circumstances, a authentication training institution shall, prior to the occurrence of alteration, report it to the SCARC and handle the relevant alteration matters:

(1)

The business scope of authentication training alters;

(2)

The legal representative or shareholders alters;

(3)

The full-time teachers alter; or

(4)

The name of the authentication training institution alters.

Chapter IV Supervision and Inspection

Article 21

The SCARC shall supervise and inspect the authentication training institutions by means of examination of annual reports, on-the-spot supervision, selective examination on authentication training activities and results, organizing craft brothers for deliberation and solicitation of opinions from trainees.

Article 22

The accreditation institution shall conduct authentication supervision over those authentication training institutions that have obtained the accreditation.

Article 23

The local authentication supervisory and administrative department shall, in accordance with the present Measures, supervise and inspect the authentication training activities, and shall investigate and handle the illegal acts.

Article 24

Any entity or individual has the right to report any illegal or irregular authentication training act to the SCARC or the local authentication supervisory and administrative departments, which shall conduct the investigation and handling in a timely manner and shall keep secret for the person reporting the offence.

Article 25

Under any of the following circumstances, the SCARC shall go through the formalities for canceling the decision on approval of a authentication training institutions:

(1)

The valid period of a Letter on Approval of a Authentication Training Institution has expired and has not been extended;

(2)

The authentication training institution has been terminated according to law;

(3)

The authentication training institution has lost the capacity for authentication training; or

(4)

Any other circumstance as prescribed by laws or regulations, under which the decision on approval of authentication training institutions shall be cancelled.

Article 26

Under any of the following circumstances, the SCARC may, pursuant to the request of any interested party or its function, revoke a decision on approval of a authentication training institution:

(1)

The functionary makes an approval decision by abusing his authorities or neglecting his duties;

(2)

An approval decision is made by exceeding the statutory authorities;

(3)

An approval decision is made by violating the statutory procedures;

(4)

An approval is granted to an applicant that is not of the application qualifications or does not meet the statutory conditions; or

(5)

Other circumstances, under which an approval decision may be revoked.

Chapter V Penalty Provisions

Article 27

Where any authentication training activity is illegally carried out without approval, the violator shall be charged to stop its authentication training activities and be imposed upon a fine of 30,000 Yuan, and shall be publicized.

Article 28

Where a authentication training institution illegally undertakes the relevant training courses subcontracted from an overseas authentication training institution or organization without approval, it shall be charged to stop its training business operations as subcontracted, and be imposed upon a fine of 20,000 Yuan; where the circumstance is serious, the SCARC shall charge the violator to stop its business operation for rectification even revoking its approval document, and shall be publicized.

Article 29

Where an applicant applies for establishing a authentication training institution by disguising the relevant conditions or providing false materials, the SCARC shall refuse to accept or disapprove the application, and give a warning to the applicant.

Article 30

Where a authentication training institution obtains the approval document by frauds, bribes or any other unjustifiable means, it shall be charged to stop its authentication training activities and be fined 30,000 Yuan; and the SCARC shall revoke the approval document and publicize it.

Article 31

Where a authentication training institution undertakes the authentication training activities by exceeding its business scope as approved by the SCARC, it shall be charged to make corrections and be fined 30,000 Yuan; if the circumstance is serious, the SCARC shall charge it to stop its business operation for rectification even revoke its approval document, and publicize it.

Article 32

Where a authentication training institution alters, leases or lends its approval certificate or illegally transfers its authentication training business operation by subcontracting its authentication training business or entrusted recruitment, it shall be charged to make corrections and be fined 30,000 Yuan; if the circumstance is serious, the SCARC shall charge it to stop its business operation for rectification even revoking its approval document, and publicize it.

Article 33

Where a authentication training institution undertakes false or misleading dissemination by means of the public information, websites or advertisements, it shall be charged to make corrections and be fined 5,000 Yuan; if the circumstance is serious, the SCARC shall charge it to stop its business operation for rectification, and publicize it.

Article 34

Where any provision in Articles 13 up to 20 of the present Measures is violated, the violator shall be charged to make corrections and be warned; if the circumstance is serious, the violator shall be fined 5,000 Yuan up to 20,000 Yuan.

Article 35

When the SCARC or the local authentication supervisory and administrative department conducts supervision and inspection on a authentication training institution, if the institution disguises the relevant information, provides false materials or refuses to provide true information that can reflect its actual activities, it shall be charged to make corrections and be fined 10,000 Yuan up to 50,000 Yuan; if the circumstance is serious, the SCARC shall charge it to stop its business operation for rectification, and publicize it.

Article 36

Where a permanent representative office of an overseas authentication training institution established within the territory of the People's Republic of China has not been put on records at the SCARC or engages in the authentication training business operation, it shall be charged to make corrections and be fined 20,000 Yuan, and be publicized.

Article 37

Where a authentication training institution employs any training teacher that has not been registered or affirmed by an accreditation institution, it shall be charged to make corrections and be fined 5,000 Yuan; if the circumstance is serious, the SCARC shall charge it to stop its business operation for rectification, and publicize it.

Article 38

Where a authentication training institution continues to undertake the authentication training activities during the period that the SCARC charges it to stop its business operation for rectification, it shall be charged to make corrections and be fined 30,000 Yuan; if the circumstance is serious, the SCARC shall revoke its approval document , and publicize it.

Article 39

In the case of buying, selling, forging or illegal use of approval documents, authentication training certificates or other authentication training documents, the violator shall be charged to make corrections and be fined 30,000 Yuan.

Where a authentication training institution commits any illegal act as prescribed in the preceding paragraph, the SCARC shall charge it to stop its business operation for rectification even revoke its approval document, and publicize it.

Article 40

Where any functionary of the SCARC or the local authentication supervisory and administrative department violates the provisions of Items (1) up to (4) of Article 26 of the present Measures in the work related to the examination and approval of authentication training institutions, the department in-charge shall impose upon him an administration sanction. If any crime is constituted, he shall be subject to criminal liabilities.

Chapter VI Supplementary Provisions

Article 41

The examination and approval on or any other matter related to the establishment of a authentication training institution or a permanent representative office in any other province, autonomous region or municipality directly under the Central Government of the People's Republic of China by an applicant from Hong Kong or Macao Special Administrative Region or Taiwan Region shall be conducted by referring to the present Measures.

Article 42

The charges for authentication training shall be subject to the price laws and administrative regulations of the state.

Article 43

The power to interpret the present Measures shall remain with the General Administration of Quality Supervision, Inspection and Quarantine.

Article 44

The present Measures shall go into effect as of November 1, 2005.

Those provisions for the examination and approval on authentication training institutions or other relevant administrative provisions that conflict with the present Measures shall be suspended from enforcement as of the day of the implementation of the present Measures.