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Administrative Permission Law of the People's Republic of China 2003
Date:2014-12-03    Source:english.agri.gov.cn

(Adopted at the 4th Meeting of the Standing Committee of the Tenth National People's Congress on August 27, 2003 and promulgated by Order No.7 of the President of the People’s Republic of China on August 28, 2003)

Contents

Chapter I General Provisions

Chapter II Institution of the Procedure for Administrative Permission

Chapter III Department Granting Administrative Permission

Chapter IV Procedures for Granting Administrative Permission

Section 1 Application and Acceptance

Section 2 Examination and Decision

Section 3 Time Limit

Section 4 Hearing

Section 5 Alteration and Extension

Section 6 Special Provisions

Chapter V Fees for Administrative Permission

Chapter VI Supervision and Inspection

Chapter VII Legal Responsibility

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is enacted in accordance with the Constitution to standardize the institution of the procedure for, and the granting of, administrative permission, to protect the legitimate rights and interests of citizens, legal persons and other organizations, to safeguard public interests and maintain public order, and to ensure and supervise the effective exercise of administration by administrative departments.

Article 2 For purposes of this Law, administrative permission means approval given to citizens, legal persons and other organizations for engaging in special activities by administrative departments on the basis, and upon examination according to law, of their applications.

Article 3 This Law is applicable to the institution of the procedure for, and the granting of, administrative permission.

This Law is not applicable to the examination and approval by the relevant administrative departments of such matters as personnel, financial and foreign-related affairs of other departments or of the institutions directly under the administration of the said departments.

Article 4 The procedure for administrative permission shall be instituted and administrative permission shall be granted in accordance with the statutory limits of power, scope, requirements and procedures.

Article 5 The procedure for administrative permission shall be instituted and administrative permission shall be granted in adherence to the principles of openness, fairness and impartiality.

Provisions on administrative permission shall be promulgated; and no provisions that are not promulgated shall be made the basis for the granting of administrative permission. The granting and outcome of administrative permission shall be publicized except where State secrets, business secrets and individual privacy are involved.

The applicants who meet the statutory requirements and standards shall have the equal right to obtain administrative permission according to law, and administrative departments shall not discriminate against any of them.

Article 6 Administrative permission shall be granted in adherence to the principle of meeting the convenience of people with greater efficiency and fine service.

Article 7 With regard to the granting of administrative permission by administrative departments, citizens, legal persons and other organizations shall have the right to make their statements and argue their cases; they shall have the right, in accordance with law, to apply for administrative reconsideration or bring an administrative suit; and they shall have the right to demand compensation according to law if their legitimate rights and interests are damaged due to the unlawful granting of administrative permission by administrative departments.

Article 8 Administrative permission obtained according to law by citizens, legal persons or other organizations shall be protected by law. No administrative departments shall, without authorization, change the administrative permission already in effect.

Where the laws, regulations or rules, on the basis of which administrative permission is granted, have been revised or abolished, or major charges have occurred in the objective circumstances, on the basis of which administrative permission is approved, administrative departments may, for the need of public interests and in accordance with law, alter or revoke the administrative permission already in effect. Where, as a consequence, losses are caused to the property of citizens, legal persons or other organizations, administrative departments shall make them compensations according to law.

Article 9 Administrative permission obtained according to law shall not be transferred except where laws and regulations provide that it may be transferred according to statutory requirements and procedures.

Article 10 People's governments at or above the county level shall establish a sound system to supervise the granting of administrative permission by administrative departments and exercise strict supervision over and inspection of the granting of such permission by the said departments.

Administrative departments shall carry out effective supervision over the activities engaged in by citizens, legal persons and other organizations, to which administrative permission is granted.

Chapter II Institution of the Procedure for Administrative Permission

Article 11 The procedure for administrative permission shall be instituted in adherence to the laws governing economic and social development and for the benefit of bringing into full play the enthusiasm and initiative of citizens, legal persons and other organizations, safeguarding public interests, maintaining public order and promoting the harmonious development of the economy, society and the ecological environment.

Article 12 The procedure for administrative permission may be instituted for the following matters:

(1) matters relating to the special activities that directly involve State security, macro-economic control and protection of the ecological environment and that have a direct bearing on human health and the safety of people's lives and property, which are subject to approval in accordance with the statutory requirements;

(2) matters relating to the development and utilization of limited natural resources, the allocation of public resources as well as access to the market of the special trades that have a direct bearing on public interests, etc., to which special rights need to be granted;

(3) matters relating to the professions and trades that provide services to the public and that have a direct bearing on public interests, the qualifications and competence to be possessed by which, such as the special credibility, conditions and skills, need to be affirmed;

(4) matters relating to the important equipment, facilities, products and articles that have a direct bearing on public security, human health, and the safety of people's lives and property, which need to be verified by means of inspection, test, quarantine, etc. and in accordance with technical standards and specifications;

(5) matters relating to the establishment of an enterprise or other organization, the capacity of which as a subject needs to be affirmed; and

(6) other matters for which the procedure for administrative permission may be instituted, as provided for by laws and administrative regulations.

Article 13 For the matters specified in Article 12 of this Law which can be regulated by the following means, institution of the procedure for administrative permission may be exempted:

(1) matters on which citizens, legal persons and other organizations can make decisions themselves;

(2) matters which can effectively be regulated by the competitive mechanism of the market;

(3) matters which the organizations of trades or intermediary bodies can manage through self-discipline; and

(4) matters which administrative departments can solve by other administrative means such as supervision afterwards.

Article 14 With respect to the matters specified in Article 12 of this Law, the procedure for administrative permission may be instituted by law. Where such a law is not enacted, it may be instituted by administrative regulations.

When necessary, the State Council may institute the procedure for administrative permission by means of promulgating decisions. After implementation of such decisions, the State Council shall, except for matters to which provisional administrative permission is granted, without delay request the National People's Congress or its Standing Committee to enact laws, or formulate administrative regulations itself.

Article 15 Where laws or administrative regulations on the matters specified in Article 12 of this Law are not formulated, the procedure for administrative permission for them may be instituted by local regulations; where neither laws and administrative regulations nor local regulations are formulated, and where it is really necessary for administrative permission to be granted directly for the need of administration, the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government may institute provisional procedure for administrative permission in the form of rules. Where it is necessary to continue granting such provisional administrative permission at the expiration of a whole year, the said governments shall request the people's congresses or their standing committees at the corresponding levels to formulate local regulations.

No procedure for administrative permission in respect of the qualifications and competence of citizens, legal persons and other organizations, which are to be affirmed by the State in a unified manner, may be instituted in the form of local regulations or rules of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government; nor shall the procedure for administrative permission in respect of the setting up and registration of enterprises and other organizations or administrative permission prior to their setting up and registration be instituted by the said governments in the said form. The procedure for administrative permission instituted by them shall not restrict the individuals or enterprises of other regions from engaging in production and business operation and providing services in the local areas, and shall not restrict the commodities of other regions from entering the local markets.

Article 16 Within the scope of the matters for which the procedure for administrative permission is instituted by law, specific provisions on the granting of such permission may be formulated in administrative regulations.

Within the scope of the matters for which the procedure for administrative permission is instituted by law or administrative regulations, specific provisions on the granting of such permission may be formulated in local regulations.

Within the scope of the matters for which the procedure for administrative permission is instituted by superordinate laws, specific provisions on the granting of such permission may be formulated in rules.

Additional procedure for administrative permission shall not be instituted in the specific provisions formulated in the regulations and rules for the granting of administrative permission for which the procedure is instituted by superordinate laws; and other requirements in violation of the superordinate laws shall not be added in the specific provisions on the requirements of administrative permission.

Article 17 With the exception of what is provided for in Articles 14 and 15 of this Law, no procedure for administrative permission shall be instituted in any other standardizing documents.

Article 18 When the procedure for administrative permission is instituted, provisions on the departments, requirements, procedures and time limit for the granting of such permission shall be formulated.

Article 19 Where, when drafting laws or regulations or when drafting rules of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, the drafting unit plans to institute the procedure for administrative permission, it shall solicit opinions by holding hearings or evaluation meetings or by other means, and shall explain to the formulating departments about the necessity for instituting the same, the impact it may possibly make on the economy and society as well as the opinions it has solicited and adopted.

Article 20 The department that institutes the procedure for administrative permission shall regularly make appraisal of the procedure instituted; and where it believes that matters can be solved by the means specified in Article 13 of this Law, it shall, without delay, revise or nullify the provisions on the institution of the same.

The department granting administrative permission may, when it thinks fit, make an appraisal of the granting of the administrative permission for which the procedure is already instituted and of the necessity of its existence, and report their comments and suggestions to the department that institutes the procedure for administrative permission.

Citizens, legal persons and other organizations may put forth their comments and suggestions regarding the institution of the procedure for, and the granting of, administrative permission to the departments that institute the procedure and grant the permission.

Article 21 Where the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government, in light of the economic and social development in their respective administrative regions, believe that the economic matters for which the procedure for administrative permission is instituted in their administrative regulations can be solved by the means specified in Article 13 of this Law, they may, upon approval by the State Council, cease granting such permission within their own administrative regions.

Chapter III Department Granting Administrative Permission

Article 22 Administrative permission shall be granted by an administrative department with the power of granting such permission within the limits of its statutory functions and powers.

Article 23 An organization with the functions of administering public affairs conferred by laws and regulations shall grant administrative permission in its own name and within the limits of the statutory powers. The provisions on administrative departments in this Law shall be applicable to such an empowered organization.

Article 24 An administrative department may, within the limits of its statutory functions and powers and in accordance with the provisions of laws, regulations and rules, entrust another administrative department with the granting of administrative permission. The entrusting department shall publicize the entrusted administrative department and the matters subject to the entrusted granting of administrative permission.

The entrusting administrative department shall be in charge of supervision over the granting of administrative permission by the entrusted administrative department, and shall bear legal responsibility for the consequences of such granting.

The entrusted administrative department shall, within the limits of the entrustment and in the name of the entrusting administrative department, grant administrative permission; it shall not entrust another organization or individual with the granting of administrative permission.

Article 25 Upon approval by the State Council, the people's government of a province, autonomous region or municipality directly under the Central Government may, on the principles of simplification, uniformity and efficiency, decide to let one administrative department exercise the power of administrative permission which is exercised by relevant administrative departments.

Article 26 Where matters of administrative permission need to be handled by more than one institution within an administrative department, the said department shall decide on one of the institutions for accepting applications for administrative permission and for serving the decisions on such permission itself.

Where administrative permission is granted separately by more than two departments of a local people's government according to law, the government may decide on one of the departments for accepting applications for administrative permission and for handling them itself after the relevant departments are informed of the matter and after they respectively put forth their opinions, or have the relevant departments to handle them jointly or in a concentrated way.

Article 27 In granting administrative permission, the administrative department shall not make the applicants such unjustifiable requests as to purchase goods it designates and to accept paid service.

In handling matters of administrative permission, the staff members of administrative departments shall not ask the applicants for money or things of value, accept or receive the same, or seek other benefits.

Article 28 The inspection, test and quarantine of the equipment, facilities, products and goods that have a direct bearing on public security, human health and the safety of people's lives and property shall, except where laws and administrative regulations provide that they be conducted be administrative departments, gradually be carried out by professional and technical organizations that meet the statutory requirements. The professional and technical organizations and their staff members concerned shall bear legal responsibility for the conclusions they draw from inspection, test and quarantine.

Chapter IV Procedures for Granting Administrative Permission

Section 1 Application and Acceptance

Article 29 Where citizens, legal persons and other organizations intend to engage in special activities for which they need to obtain administrative permission according to law, they shall submit their applications to administrative departments. Where forms need to be filled out for application, the administrative departments shall provide the applicants with such forms of application for administrative permission. The form of application shall not contain such particulars as are not directly related to the matters involved in the application for administrative permission.

An applicant may entrust his agent with the application for administrative permission, except where, in accordance with law, he is required to submit his application for administrative permission at the office place of an administrative department.

Application for administrative permission may be submitted in the form of letter, telegram, telex, fax, electronic data exchange, or e-mail.

Article 30 Administrative departments shall make public at their office places the matters, basis, requirements, quantity, procedure and time limit, as provided for by laws, regulations and rules, regarding relevant administrative permission, as well as the catalogue of all the materials required to be submitted and application forms for demonstration.

Where an applicant requests the administrative department to make explanation and interpretation for what it publicizes, the department shall do so accordingly and provide accurate and reliable information to the applicant.

Article 31 An applicant for administrative permission shall submit to the administrative department truthful relevant materials and provide true information, and shall be responsible for the truthfulness of the matters of substance in the application materials. The administrative department shall not ask the applicant to submit technical data and other materials that have no relation to the matters for which administrative permission is applied for.

Article 32 With regard to the application submitted by an applicant for administrative permission, the administrative department shall handle it differently in light of the following circumstances:

(1) where, in accordance with law, no administrative permission is necessary for the matters for which such permission is applied for, it shall directly inform the applicant that such an application is not to be accepted;

(2) where, in accordance with law, the matters for which administrative permission is applied for do not fall within the scope of its functions and powers, it shall directly make the decision not to accept such an application and inform the applicant of the relevant administrative department to which the application should be submitted;

(3) where there are errors in the application materials which can be corrected on the spot, it shall allow the applicant to make the correction on the spot;

(4) where the application materials are not complete or not in conformity with the statutory form, it shall, on the spot or within five days, inform the applicant, all at once, of what needs to be supplemented or corrected; and if it fails to do so at the expiration of the time limit, the application shall be deemed to be accepted as of the date it receives the application materials; and

(5) where the matters for which administrative permission is applied for fall within the scope of its functions and powers, the application materials are complete and in conformity with the statutory form, or the applicant submits the materials of application which are fully supplemented or corrected as it requires, it shall accept the application for administrative permission.

When the administrative department accepts or refuses to accept an application for administrative permission, it shall produce a written certificate with the special seal of the department affixed and the date clearly marked.

Article 33 Administrative departments shall establish and improve the relevant systems, introduce electronic administration, and publicize at their websites the matters which are subject to administrative permission, in order to make it convenient for the applicants to apply for administrative permission by such means as data cable; and they shall share information about administrative permission among themselves and thus increase their administrative efficiency.

Section 2 Examination and Decision

Article 34 An administrative department shall examine the materials of application submitted by an applicant.

Where the application materials submitted by an applicant are complete and in conformity with the statutory form, on which the administrative department can make decision on the spot, it shall, on the spot, make the decision on administrative permission in writing.

Where, according to the statutory requirements and procedures, the matters of substance in the application materials need to be verified, the administrative department shall assign two or more of its staff members to conduct such verification.

Article 35 Where, according to law, an application for administrative permission needs to be examined by an administrative department at a lower level before it is submitted to an administrative department at a higher level for decision, the administrative department at a lower level shall, within the statutory time limit, submit its preliminary opinions based on the examination and the complete materials of application directly to the administrative department at a higher level. The administrative department at a higher level shall not ask the applicant to provide application materials again.

Article 36 Where in examining an application for administrative permission an administrative department finds a matter for administrative permission has a direct bearing on the vital interests of another person, it shall inform the interested person of the fact. The applicant and the interested person shall have the right to make their statements and argue their cases. The administrative department shall listen to the opinions of the applicant and the interested person.

Article 37 After examining an application for administrative permission, the administrative department shall, except where it can make a decision on such permission on the spot, make such a decision within the statutory time limit in adherence to the specified procedures.

Article 38 Where the application of an applicant is in conformity with the statutory requirements and standards, the administrative department shall, according to law, make a decision in writing on approving administrative permission.

Where, according to law, an administrative department makes a decision in writing on refusing to approve administrative permission, it shall state its reasons, and inform the applicant that he has the right, in accordance with law, to apply for administrative reconsideration or to bring an administrative suit.

Article 39 Where the administrative department makes the decision on approving administrative permission, for which a certificate of administrative permission is required to be issued, it shall issue to the applicant one of the following certificates of administrative permission affixed with the seal of the department:

(1) a permit, license or other certificate of permission;

(2) a qualification certificate, competence certificate or other certificate of quality;

(3) approval documents or certifying documents of the administrative department; and

(4) other certificates of administrative permission stipulated by laws and regulations.

Where the administrative department conducts inspection, test or quarantine, it may paste labels on, or affix the seal of inspection, test or quarantine to, the equipment, facilities, products or goods which pass the inspection, test or quarantine.

Article 40 The administrative department shall make known to the public the decisions it makes on approving administrative permission, and the public shall have the right to consult them.

Article 41 Where no regional restrictions are imposed on the use of administrative permission instituted by laws and administrative regulations, such permission obtained by applicants is effective throughout the country.

Section 3 Time Limit

Article 42 An administrative department shall, except where it can make a decision on administrative permission on the spot, make such a decision within 20 days from the date it accepts an application for administrative permission. Where it cannot do so within 20 days, it may have an extension of 10 days upon approval by the leading member of the department, and shall inform the applicant of the reasons for extension. However, where laws and regulations provide otherwise, the provisions there shall prevail.

Where, according to the provisions in Article 26 of this Law, applications for administrative permission are handled in a unified manner, jointly, or in a concentrated way, the time for such handling shall not exceed 45 days; and where such handling cannot be wound up within 45 days, an extension of 15 days may be allowed upon approval by the leading member of the people's government at the corresponding level, and the applicant shall be informed of the reasons for extension.

Article 43 Where, according to law, an application for administrative permission needs to be examined by an administrative department at a lower level before it is submitted to an administrative department at a higher level for decision, the administrative department at a lower level shall wind up the examination within 20 days from the date it accepts the application. However, where laws and regulations provide otherwise, the provisions there shall prevail.

Article 44 After the administrative department makes the decision on approving administrative permission, it shall, within 10 days from the date the decision is made, issue a certificate of administrative permission to or serve it on the applicant, or paste labels or affix the seal of inspection, test or quarantine.

Article 45 Where, according to law, a decision on administrative permission to be made by an administrative department requires hearing, public bidding, auction, inspection, test, quarantine, authentication or expert evaluation, the time thus needed shall not be reckoned in the time limit specified by this Section. The administrative department shall inform the applicant in writing of the time needed.

Section 4 Hearing

Article 46 The administrative department shall make known to the general public, and hold hearings on, the matters for the granting of administrative permission which, according to the provisions of laws, regulations or rules, need hearing, or other matters of vital importance involving public interests for the granting of administrative permission which the administrative department believes need hearing.

Article 47 Where administrative permission directly involves the vital interests between an applicant and another person, the administrative department shall, before making the decision on administrative permission, inform the applicant and the interested person that they have the right to request hearing; and where the applicant and the interested person, within five days from the date they are informed of such right, submit their application for hearing, the administrative department shall make arrangements for the hearing within 20 days.

The applicant and the interested person shall not bear the expenses for the hearing arranged by the administrative department.

Article 48 A hearing shall be conducted in accordance with the following procedures:

(1) The administrative department shall, seven days before holding the hearing, inform the applicant and the interested person of the time and the venue the hearing is to be held, and when necessary, make the time and venue known to the public;

(2) The hearing shall be held openly;

(3) The administrative department shall appoint a person, other than its staff member who examines the application for administrative permission, to chair the hearing, and where the applicant or the interested person believes that the chairperson has a direct interest in the matter for administrative permission, he shall have the right to apply for the chairperson's withdrawal;

(4) During hearing, the staff member who examines the application for administrative permission shall provide the evidence and reasons for his opinions, and the applicant and the interested person may provide their evidence, and argue their cases and cross-examine the evidence provided by the said staff member; and

(5) A record of the hearing shall be made in writing and be signed by, or affixed with the seals of, the participants at the hearing after they confirm that there are no mistakes in it.

The administrative department shall, on the basis of the record of the hearing, make its decision on administrative permission.

Section 5 Alteration and Extension

Article 49 Where a person granted the permission asks to alter the matters for which administrative permission is obtained, he shall submit an application to the administrative department that makes the decision on administrative permission; and where the application is in conformity with statutory requirements and standards, the administrative department shall go through the formalities for alteration according to law.

Article 50 Where a person granted the permission needs an extension of the term of validity of the administrative permission obtained according to law, he shall, 30 days before the expiration of the said term of validity, make an application to the administrative department that makes the decision on administrative permission. However, where laws, regulations and rules provide otherwise, the provisions there shall prevail.

The administrative department shall, on the basis of the application of the person granted the permission, make its decision on whether to approve the extension before the expiration of the term of validity of the administrative permission; and where no such decision is made at the expiration of the time limit, the extension shall be regarded as being approved.

Section 6 Special Provisions

Article 51 Where there are provisions in this Section on the procedures for the granting of administrative permission, they shall be applied; and where there are no such provisions in this Section, the relevant provisions in this Chapter shall be applied.

Article 52 The provisions in relevant laws and administrative regulations shall be applicable to the procedures for the granting of administrative permission by the State Council.

Article 53 For the granting of administrative permission to the matters specified in Subparagraph 2 of Article 12 of this Law, the administrative department shall make its decision through the forms of fair competition such as public bidding and auction. However, where laws and administrative regulations provide otherwise, the provisions there shall prevail.

The specific procedures for the administrative department to make its decision on administrative permission through such forms as public bidding and auction shall be enacted in accordance with the provisions of relevant laws and administrative regulations.

After the administrative department decides on the winner of a bid or the vendee in accordance with the procedures for public bidding or auction, it shall make the decision on approving administrative permission, and shall issue the certificate of administrative permission to the winner or vendee according to law.

Where the administrative department, in violation of the provisions of this Article, does not adopt public bidding or auction or goes against the procedures for public bidding or auction, thus infringing on the legitimate rights and interests of an applicant, the applicant may, in accordance with law, apply for administrative reconsideration or bring an administrative suit.

Article 54 For the granting of administrative permission to the matters specified in Subparagraph 3 of Article 12 of this Law, which involves endowing citizens with special qualifications and for which national examinations should be conducted according to law, the administrative department shall make its decision on administrative permission on the basis of the results of examinations and other statutory requirements; and for the granting of special qualifications and competence of legal persons or other organizations, it shall make its decision on the basis of the result of the appraisal regarding the composition of the professional personnel, the technological qualifications, operational achievements and managerial level of the applicants. However, where laws and administrative regulations provide otherwise, the provisions there shall prevail.

Examinations taken by citizens for special qualifications shall be arranged by administrative departments or organizations of trades according to law, and shall be conducted openly. The administrative departments or the organizations of trades shall, in advance, publicize the qualifications and measures for registration and the subjects and outlines for examination. However, no compulsory pre-examination training for qualification examination shall be arranged and no teaching materials or supplementary materials shall be designated.

Article 55 For the granting of administrative permission to the matters specified in Subparagraph 4 of Article 12 of this Law, which are subject to inspection, test or quarantine according to technical standards and specifications, as is required by law, the administrative department shall, based on the results of the inspection, test or quarantine, make its decision on such permission.

To conduct inspection, test or quarantine, the administrative department shall, within five days from the date it accepts an application, assign two or more of its staff members to do the job in accordance with the technical standards and specifications. Where the administrative department can, dispensing with further technical analysis of the results of inspection, test or quarantine, determine whether the equipment, facilities, products or goods are in conformity with the technical standards and specifications, it shall make its decision on administrative permission on the spot.

Where the administrative department, based on the results of inspection, test or quarantine, decides not to approve administrative permission, it shall state clearly in writing the technical standards and specifications on the basis of which it makes such a decision.

Article 56 For the granting of administrative permission to the matters specified in Subparagraph 5 of Article 12 of this Law, for which the application materials submitted by the applicant are complete and in conformity with the statutory forms, the administrative department shall make an entry of the matters in a register on the spot. Where matters of substance of the application materials need to be verified, the administrative department shall conduct the verification in accordance with the provisions in Subparagraph 3 of Article 34 of this Law.

Article 57 Where the number of matters to which administrative permission can be granted is restricted and the applications submitted by two or more applicants are in conformity with the statutory requirements and standards, the administrative department shall make its decision on approving administrative permission in sequence of time at which it accepts such applications for administrative permission. However, where laws and administrative regulations provide otherwise, the provisions there shall prevail.

Chapter V Fees for Administrative Permission

Article 58 Administrative departments shall not collect any fees for the granting of administrative permission or for their supervision over and inspection of the matters to which administrative permission has been granted. However, where laws and administrative regulations provide otherwise, the provisions there shall prevail.

Administrative departments shall not collect fees for the forms of application for administrative permission.

The funds needed by administrative departments for the granting of administrative permission shall be incorporated into their own budgets, which shall be guaranteed by the governments at the corresponding levels, and verified and allocated in accordance with the budgets approved.

Article 59 Where administrative departments collect fees for the granting of administrative permission in accordance with laws and administrative regulations, they shall do so in conformity with the publicized statutory items and rates; and all the fees they collect shall be turned over to the State Treasury, and no departments or individuals shall, in any form, withhold or misappropriate them, or divide them in private or do so in disguised form. No finance departments shall, in any form, return to the administrative departments the fees collected by them for the granting of administrative permission, or do so in disguised form.

Chapter VI Supervision and Inspection

Article 60 The administrative department at a higher level shall exercise rigid supervision over and inspection of the granting of administrative permission by the administrative department at a lower level, in order to put to right, in good time, violations of laws committed in the granting of administrative permission.

Article 61 The administrative department shall establish a sound supervisory system and perform its supervisory duties through checking the materials reflecting the activities conducted by the persons granted the permission in respect of the matters to which administrative permission has been granted.

After exercising, in accordance with law, supervision over and inspection of the activities conducted by the persons granted the permission in respect of the matters to which administrative permission has been granted, the administrative department shall record the supervision and inspection exercised as well as the problems handled, and the record shall be placed on file after the supervisors and inspectors sign it. The public shall have the right to consult the records of supervision and inspection kept by the administrative department.

The administrative department shall create conditions to interconnect with the persons granted the permission and the computer file systems of the relevant administrative departments, in order to check the activities conducted by the persons granted the permission in respect of the matters to which administrative permission has been granted.

Article 62 The administrative department may, according to law, inspect, examine or test the samples of the products manufactured or dealt in by the persons granted the permission and conduct on-the-spot inspection of the places where the products are manufactured or dealt in. When conducting inspection, the administrative department may, according to law, consult the relevant materials or request the persons granted the permission to submit such materials; and the said persons shall provide relevant information and materials truthfully.

The administrative department shall, in accordance with the provisions of laws and administrative regulations, conduct regular inspection of the important equipment and facilities that have a direct bearing on public security, human health and the safety of people's lives and property. With respect to those that pass the inspection, it shall issue appropriate documents certifying the fact.

Article 63 When exercising supervision and inspection, the administrative department shall not hinder the normal production and operation of the persons granted the permission, nor ask the said persons for money or things of value, or receive or accept the same, or seek other benefits.

Article 64 Where a person granted the permission, in violation of law and in an area beyond the jurisdiction of the administrative department that makes the decision on administrative permission, engages in activities in respect of the matters to which administrative permission has been granted, the administrative department in the area where such violation takes place shall, according to law, send a copy of the facts of violation committed by the person granted the permission and the results of its handling of the violation to the administrative department that makes the decision on administrative permission.

Article 65 Individuals and organizations that find activities conducted, in violation of law, in respect of the matters to which administrative permission has been granted shall have the right to report such activities to administrative departments, which shall, without delay, check the facts and handle the violation.

Article 66 Where a person granted the permission fails to perform his obligations of developing and utilizing natural resources according to law or his obligations of utilizing public resources according to law, the administrative department shall instruct him to set it right within a time limit; and if he fails to do so within the specified time limit, the administrative department shall deal with the case in accordance with the provisions of relevant laws and administrative regulations.

Article 67 The person granted the permission that has obtained administrative permission for access to the market of a special trade which has a direct bearing on public interests shall, in compliance with the service standard prescribed and the rates fixed by the State as well as the requirements prescribed by the administrative department according to law, provide to users safe, convenient and steady service at reasonable rates, and shall perform his obligation of providing universal service; and without approval by the administrative department that makes the decision on administrative permission, the said person shall not suspend business or close down.

Where a person granted the permission fails to perform the obligations specified in the preceding paragraph, the administrative department shall instruct him to set it right within a time limit or, according to law, take effective measures to see that he performs the obligations.

Article 68 With respect to the important equipment and facilities that have a direct bearing on public security, human health and the safety of people's lives and property, the administrative department shall see that the units that make the design of, manufacture, install or use such equipment and facilities to establish an appropriate self-inspection system.

Where, in conducting supervision and inspection, the administrative department discovers that in the important equipment and facilities that have a direct bearing on public security, human health and the safety of people's lives and property there exist hidden dangers threatening safety, it shall instruct the units to cease manufacturing, installing and using the same, and shall instruct the units that make the design of, manufacture, install or use the same to rectify immediately.

Article 69 In any of the following cases, the administrative department that makes the decision on administrative permission or its immediate superior may, based on the request of the interested person or on its own functions and powers, revoke such permission:

(1) where the decision on approving administrative permission is made by staff members of the administrative department who abuse their powers or neglect their duties;

(2) where the decision on approving administrative permission is made beyond the statutory functions and powers;

(3) where the decision on approving administrative permission is made in contravention of the statutory procedures;

(4) where approval of administrative permission is given to an applicant that is not qualified for application or does not meet the statutory requirements; and

(5) other cases where administrative permission may be revoked according to law.

The administrative permission obtained by a person by such illegitimate means as deception and bribery shall be revoked.

Where revocation of administrative permission in accordance with the provisions of the preceding two paragraphs may cause great damages to public interests, such permission shall not be revoked.

Where revocation of administrative permission in accordance with the provisions in the first paragraph of this Article causes damages to the legitimate rights and interests of the person granted the permission, compensation shall be made by the administrative department according to law. Where administrative permission is revoked in accordance with the provisions in the second paragraph of this Article, the benefits obtained by the person granted the permission through such permission shall not be protected.

Article 70 In any of the following cases, the administrative department shall, in accordance with law, go through the formalities for cancelling the relevant administrative permission:

(1) where the term of validity for administrative permission is not extended at the expiration of the term;

(2) where the citizen to whom administrative permission for special qualifications is granted dies or loses the disposing capacity;

(3) where the status of a legal person or other organization is terminated according to law;

(4) where, in accordance with law, administrative permission is revoked or withdrawn, or the certificate of such permission is revoked;

(5) where matters for which administrative permission has been obtained cannot be undertaken due to force majeure; and

(6) other cases where administrative permission should be revoked as provided for by laws and regulations.

Chapter VII Legal Responsibility

Article 71 Any procedure for administrative permission instituted by a department in violation of the provisions in Article 17 of this Law, the relevant department shall instruct the department that institutes such procedure to rectify, or have the procedure terminated according to law.

Article 72 Where an administrative department or its staff member, in violation of the provisions of this Law, does one of the following, its/his immediate superior or the supervisory department shall instruct it/him to rectify; and if the circumstances are serious, the persons directly in charge and the other persons directly responsible shall be given administrative sanctions according to law:

(1) failing to accept an application for administrative permission that is in conformity with the statutory requirements;

(2) failing to publicize at the office place the materials which should be publicized according to law;

(3) in the process of accepting, examining and deciding on administrative permission, failing to perform the statutory obligation of informing the applicant and the interested person of the right to request hearing;

(4) in the case where the application materials submitted by the applicant are not complete or not in conformity with the statutory form, failing to inform the applicant, all at once, of what needs to be supplemented or corrected;

(5) failing to state its/his reasons, according to law, for refusing to accept an application for administrative permission or for refusing to approve such permission; and

(6) failing to hold hearings as is required by law.

Article 73 Where the staff member of an administrative department, when handling matters of administrative permission or exercising supervision and inspection, asks another person for money or things of value, or receives or accepts the same, or seeks other benefits, which constitutes a crime, he shall be investigated for criminal responsibility according to law; and if the case is not serious enough to constitute a crime, he shall be given administrative sanctions according to law.

Article 74 Where, in granting administrative permission, an administrative department does one of the following, it shall be instructed by its immediate superior or the supervisory department to rectify, and the persons directly in charge and the other persons directly responsible shall be given administrative sanctions according to law; and if a crime is constituted, criminal responsibility shall be investigated according to law:

(1) giving approval of administrative permission to an applicant that does not meet the statutory requirements, or making a decision on approving administrative permission beyond its statutory functions and powers;

(2) refusing to give approval of administrative permission to an applicant that meets the statutory requirements, or failing to make a decision on approving administrative permission within the statutory time limit; and

(3) failing to make a decision, through public bidding, auction or examination, on approving administrative permission on the basis of the outcome of public bidding and auction or the examination results, as is required by law, or refusing to make the decision on such basis.

Article 75 Where, when granting administrative permission, an administrative department collects fees without authorization or in contravention of the statutory items and rates, its immediate superior or the supervisory department shall instruct it to return the fees illegally collected; and the persons directly in charge and the other persons directly responsible shall be given administrative sanctions according to law.

Where the fees collected according to law for granting administrative permission are withheld, misappropriated, divided in private or done so in disguised form, such fees shall be recovered; the persons directly in charge and the other persons directly responsible shall be given administrative sanctions according to law; and if a crime is constituted, criminal responsibility shall be investigated according to law.

Article 76 Where an administrative department grants administrative permission in violation of law and thus causes damages to the rights and interests of the person concerned, it shall make compensation in accordance with the provisions of the Law on State Compensation.

Article 77 Where an administrative department does not perform its duties of supervision according to law or fails to perform such duties effectively, thus serious consequences ensue, its immediate superior or the supervisory department shall instruct it to rectify, and the persons directly in charge and the other persons directly responsible shall be given administrative sanctions according to law; and if a crime is constituted, criminal responsibility shall be investigated according to law.

Article 78 Where, when applying for administrative permission, an applicant conceals relevant information or provides false application materials, the administrative department shall refuse to accept the application or to approve such permission, and shall give a disciplinary warning to the applicant; and if the matters for which administrative permission is applied for are ones that have a direct bearing on public security, human health and the safety of people's lives and property, the applicant shall not apply for administrative permission for the same matters again within one year.

Article 79 Where a person obtains administrative permission by such illegitimate means as deception and bribery, the administrative department shall impose administrative penalties on him; if the matters for which administrative permission is obtained are ones that have a direct bearing on public security, human health and the safety of people's lives and property, the applicant shall not apply for administrative permission for the same matters again within three years, and if a crime is constituted, the said person shall be investigated for criminal responsibility according to law.

Article 80 Where a person granted the permission does one of the following, the administrative department shall impose administrative penalties on him according to law; and if a crime is constituted, he shall be investigated for criminal responsibility according to law:

(1) altering, selling, leasing out or lending the certificate of administrative permission, or illegally transferring such permission in other forms;

(2) engaging in activities beyond the limits of administrative permission;

(3) concealing relevant information from, providing false materials to, or refusing to provide truthful materials reflecting its activities to, the administrative department in charge of supervision and inspection; and

(4) committing other illegal acts specified in laws, regulations and rules.

Article 81 Where a citizen, legal person or other organization, without obtaining administrative permission, engages in activities for which administrative permission should be obtained according to law, the administrative department shall, in accordance with law, adopt measures to stop such activities, and impose administrative penalties on the citizen, legal person or other organization according to law; and if a crime is constituted, criminal responsibility shall be investigated according to law.

Chapter VIII Supplementary Provisions

Article 82 The time limit for the granting of administrative permission by an administrative department specified in this Law is counted by the working days, excluding the statutory festivals and holidays.

Article 83 This Law shall go into effect as of July 1, 2004.

The provisions on administrative permission formulated prior to implementation of this Law shall be checked up on by the formulating departments in accordance with the provisions of this Law; and beginning from the date this Law goes into effect, implementation of those provisions that are not in conformity with the provisions of this Law shall cease.

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