Laws of the People's Republic of China

CHAPTER ONE GENERAL PROVISIONS

CHAPTER TWO SUPERVISION AND CONTROL OF PRODUCT QUALITY

CHAPTER THREE RESPONSIBILITIES AND OBLIGATIONS OF PRODUCERS AND SELLERS CHAPTER FOUR COMPENSATION FOR DAMAGE

CHAPTER FIVE PENALTY PROVISIONS

CHAPTER SIX SUPPLEMENTARY PROVISIONS

CHAPTER ONE GENERAL PROVISIONS

   Article 1. The law has been formulated with a view to protecting the legitimate rights and interests of endusers and consumers and safeguarding the social and economic order by strengthening the supervision and control of the quality of products and clarifying the responsibilities of product quality.

   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.

The law does not apply to construction projects.

   Article 3. Producers and sellers are responsible for the product quality according to the provisions of the law.

   Article 4. 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 5. 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 6. The product quality supervision and control departments of the State Council are responsible for the supervision and control of the quality of products with each department to be responsible for the products within its scope of control.

The product quality supervision departments of the local governments at and above the county level are responsible for the supervision and control of product quality within their jurisdiction with each department concerned to be responsible for the products within its scope of control.

CHAPTER TWO SUPERVISION AND CONTROL OF PRODUCT QUALITY

   Article 7. Quality of products shall pass standard examinations and no sub-standard products shall be used as standard ones.

   Article 8. 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.

   Article 9. 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 10. The State shall institute a system of supervision and chiefly random examination to check randomly samples of major industrial products which may be hazardous to the health of the human body and the safety of lives and property, important products which have a major impact on the national economy and the livelihood of the people, and products claimed by endusers, consumers or other relevant organizations as having quality problems. The supervision and random examination concerned shall be planned and organized by the product quality supervision and control departments under the State Council. The product quality supervision and control departments under the local governments at and above the county level can also organize the supervision and random examination of product quality, but duplicated examination shall be avoided. The results of the random examinations shall be made public. If there are separate provisions in other laws or administrative decrees about product quality supervision and examination, the relevant laws or administrative decrees shall apply.

Quality testing may be carried out according to the requirements of the supervision and random examination, but no testing fees shall be collected from enterprises. The testing fees required by the random examination shall be listed as expenses according to relevant provision of the State Council.

   Article 11. 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 12. Endusers and consumers have the right to inquire about the quality problems of products with producers or sellers of the products. They also have the right to complain about product quality with the product quality supervision and control departments or administrations for industry and commerce or other relevant departments and the relevant departments shall be responsible for handling the matters.

   Article 13. 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.

CHAPTER THREE RESPONSIBILITIES AND OBLIGATIONS OF PRODUCERS AND SELLERS

Responsibilities and obligations of producers for the quality of their products

   Article 14. 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 15. The marks on the packages of products shall conform to the following requirements:

1. There shall be certificates for quality inspection;

2. There shall be the names of products and the names and addresses of producers in the Chinese language;

3. If, according to the characteristics and requirements for use, the specification, grades or the names and contents of major elements are required to be specified, there shall be specified clearly;

4. Products which have a time limit for use, the date of production or the period for safe use of date of losing effect shall be specified;

5. Products which may cause harm to the human body or likely to threaten the safety of lives and property if improperly used shall have warning marks or warnings written in Chinese.

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

   Article 16. Products which are highly toxic, dangerous, easy to break or cannot be handled upside down in the process of storage or transportation or have other special requirements shall have packages meeting the corresponding requirements, warning marks or warnings written in Chinese specifying the points for attention in handling.

   Article 17. Producers are forbidden to produce products eliminated according to State laws or decrees.

   Article 18. Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

   Article 19. Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

   Article 20. 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.

   Article 21. Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and other marks.

   Article 22. Sellers shall adopt measures to maintain the quality of products for sale.

   Article 23. Sellers are not allowed to sell products which have lost effect or have deteriorated.

   Article 24. The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

   Article 25. Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

   Article 26. Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

   Article 27. 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 FOUR COMPENSATION FOR DAMAGE

   Article 28. 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 29. 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 30. 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 31. 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 32. If bodily injury is caused by the defect of products, the party responsible shall pay the medical fees, the income reduced for work missed and living allowances for handicapped cases. If the defect of products causes death, the party responsible shall pay the funeral fees, pension cost and the living expenses for dependents 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 33. 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 34. 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 35. 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, the cases may be brought before the people's courts.

   Article 36. 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 FIVE PENALTY PROVISIONS

   Article 37. An enterprise producing products that do not conform to the State and the specific trade standards for ensuring the health of the human body and the safety of lives and property shall be ordered to stop production and the products and illegal proceeds shall be confiscated, with a fine amounting to over one time and less than five times the value of the illegal proceeds be imposed and if necessary, the production license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be affixed.

A seller which sells products that do not conform to the State and trade standards for ensuring the health of the human body and the safety of lives and property shall be ordered to stop the selling. If the seller is fully aware that the products it sells do not conform to the State or trade standards for ensuring the health of the human body and the safety of lives and property, the products and the illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the value of the illegal proceeds shall be imposed on the seller and if necessary, the business license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be affixed.

   Article 38. 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 and its illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the illegal proceeds shall be imposed and, if necessary, the production or business license may be revoked. If the case is serious enough to constitute a crime, criminal responsibilities shall be affixed.

   Article 39. 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 time the total amount of proceeds shall be imposed and, if necessary, the production license may be revoked.

   Article 40. If a seller sells products that have lost effect or deteriorated, it shall be ordered to stop the selling and the products for sale and its illegal proceeds shall be confiscated and fine amounting to over one time and less than five times the total value of the proceeds shall be imposed on the seller and, if necessary, the business license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be affixed.

   Article 41. If a producer or a seller is found to have faked the place of origin, faked or used the names and addresses of other producers, faked or used quality marks such as certification marks and fine quality product marks, it shall be ordered to correct and the illegal proceeds shall be confiscated with a fine.

   Article 42. If the marketing or procurement of products listed in articles 37 to 40 of this law by offering or accepting bribes or other illegal means and the case is serious enough to constitute a crime, criminal responsibility shall be affixed.

   Article 43. If the product marks of a producer do not conform to the provisions of Article 15, it shall be ordered to correct; If the product marks on the packages of products do not conform to the provisions of items 4 and 5 of Article 15 and the case is serious enough, it shall be ordered to stop production or selling and a fine amounting to 15 percent or 20 percent of the illegal proceeds may be imposed.

   Article 44. If a producer or seller is found to have forged the testing data or testing conclusions, it shall be ordered to correct and a fine amounting to over one time and less than three times the value of the testing fees may be imposed. If the case is serious enough, the business or production license may be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be affixed on the person directly responsible according to the provisions of Article 167 of the criminal law.

   Article 45. The penalty on stopping production or revoking of business license as provided in the law shall be determined by the industrial and commercial administrative departments. Other penalties shall be determined by the product quality supervision and control departments or administrations for industry and commerce within their terms of reference. If there are separate provisions in other laws or administrative decrees about departments for exercising administrative penalties, the other laws or administrative decrees shall apply.

   Article 46. If parties concerned refuse to accept the administrative penalties, they may apply for review with the government department at a next higher level within 15 days starting from the date of receipt of the penalty decisions. The parties concerned may also bring the case directly before the people's courts within 15 days starting from the date of receipt of the penalty decisions.

Departments for review shall produce review decisions within 60 days starting from the date of receipt of the review application. If the parties concerned still refuse to accept the review decisions, they may bring the cases before the people's courts within 15 days after the receipt of the review decisions. If the departments for review fail to produce review decisions within the prescribed time limit, the parties concerned may bring the cases before the people's court within 15 days starting from the date of the expiry period for review. If the parties concerned fail to bring the cases before the people's courts and yet refuse to abide by the penalty decisions, the departments which have made the decisions may apply for compulsory implementation with the people's courts.

   Article 47. 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 48. If a government official is found to have tried to cover up enterprises, institutions or individuals with the full knowledge that they have committed crimes according to the provisions of the law, he/she shall be punished according to the criminal law.

   Article 49. If force or threat is used to obstruct the government officials engaging in product quality supervision and control in performing their duties, criminal responsibility shall be affixed according to the provisions of Article 157 of the criminal law. If force or threat is not used to refuse or obstruct the government officials engaging in product quality supervision and control in performing their duties, the public security organs shall mete out punishments according to the provisions on the control of public order.

CHAPTER SIX SUPPLEMENTARY PROVISIONS

   Article 50. 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.

   Article 51. The law shall come into effect as of September 1, 1993.