(Adopted at the 30th Meeting of the Standing Committee of the Seventh National
People’s Congress on February 22, 1993, and amended at the 16th Meeting of the
Standing Committee of the Ninth National People’s Congress on July 8, 2000)
　
Contents：
Chapter One General Provisions
Chapter Two Supervision of Product Quality
Chapter Three Liabilities and Obligations of Manufacturers and Sellers for
Product Quality
Section One Manufacturer’s Liabilities and Obligations for Product Quality
Section Two Seller’s Liabilities and Obligations for Product Quality
Chapter Four Compensation for Damages
Chapter Five Penalty Provisions
Chapter Six Supplementary Provisions

Chapter One General Provisions

Article 1 This Law is enacted for the purposes of strengthening the supervision
and administration of product quality, improving product quality, determining
the liability of product quality, protecting the legal rights and interest of
consumers, and safeguarding the social economic order.

Article Two Those who undertake the production and sale of products within the
territory of the People’s Republic of China must abide by this Law.

“Products” mentioned in this Law refer to products processed or manufactured for
sale.

This Law does not apply to construction projects. However, it applies to
construction materials, components, parts and equipment for use in construction
projects, provided that the aforesaid materials, components, parts and equipment
fall within the scope of products defined in the preceding paragraph.

Article 3 The manufacturers and sellers must perfect their internal management
of product quality, strictly implement quality criteria for various posts,
specify quality liabilities, and make checks accordingly.

Article 4 Manufacturers and sellers shall be liable for product quality in
accordance with this Law.

Article 5 It is prohibited to forge or falsely use product quality marks such as
authentication marks. It is prohibited to forge the origin of products, to forge
or falsely use other’s factory name or address. It is prohibited to adulterate,
to pass a fake product off as a genuine one, or to pass a defective product off
as a high quality one.

Article 6 The State encourages the popularization of scientific methods in
product quality control and the adoption of advanced science and technology. The
State encourages enterprises to make their product quality meet and even surpass
their respective industry standards, the national and international standards.

Units and individuals that have made outstanding achievements in maintaining
excellent management of product quality and in raising product quality to the
advanced international standards shall be awarded.

Article 7 The people’s governments at all levels shall incorporate the task of
improving product quality into their plans for national economy and social
development. They shall strengthen the coordination, planning and administration
of product quality, encourage and supervise the manufacturers and sellers to
strengthen the management of product quality and improve the quality of their
products. The governments shall also coordinate relevant departments to take
legal measures to stop the activities in the production and sale in violation of
this Law to safeguard the implementation of this Law.

Article 8 The department under the State Council in charge of supervision over
product quality shall be responsible for nationwide supervision over product
quality. The relevant departments under the State Council shall be responsible
for supervision over product quality within the scope of their respective
functions and responsibilities.

The administrative departments responsible for supervision over product quality
in the local people’s governments at or above the county level shall be in
charge of supervision and control over product quality within their respective
administrative regions. The relevant departments in the local people’s
governments at or above the county level shall be in charge of supervision over
product quality within the scope of their respective functions and
responsibilities.

Where a law provides on the department of supervision over product quality
otherwise, such law shall apply.

Article 9 The functionaries in the people’s government at all levels and other
functionaries of sate organs shall not abuse their powers, neglect their duties,
engages in malpractice or distorts law to seek illegal interest, to enshield or
let loose production and sale of products in violation of this Law in their
administrative region or in their scope of responsibilities and
functions,　obstruct　or interfere with the investigation and punishment of
production and sale of products in violation of this Law.

Where the people’s government at local levels and other state organs enshield or
let loose production and sale of products in violation of this Law, the person
(s) directly in charge shall bear legal liabilities in accordance with law.

Article 10 Any unit or individual has the right to inform the
product-quality-supervising organ or other relevant organs on activities in
violation of this Law.

The said organs shall keep confidentiality of the reporter’s personal data, and
award the reporter in accordance with the provisions of the people’s government
of the province, autonomous region or municipality directly under the Central
Government.

Article 11 No unit or individual shall bar the qualified products manufactured
outside its own region or industry system from entering its own region or
industry system.

Chapter Two Supervision over Product Quality

Article 12 The quality of a product shall be inspected and proves to be up to
the standards. Products not up to standards shall not be passed off as qualified
ones

Article 13 Industrial products that contain possible threats to the health and
safety of human life or safety of property must meet the national standards and
industry standards safeguarding the health and safety of human life or the
safety of property. In absence of such national standards or industry standards,
the product must meet the requirements for safeguarding the health and safety of
human life and safety of property.

It is prohibited to produce or sell industrial products that cannot meet the
standards or requirement for safeguarding the health and safety of human life
and safety of property. The State Council shall formulate specific
administrative measures for such prohibition.

Article 14 The State shall, in compliance with the generally adopted
international quality control standards, promote the authentication system for
enterprise quality. An enterprise may on voluntary basis apply to the department
in charge of supervision over product quality under the State Council or an
authentication agency approved by an organ authorized by the department in
charge of supervision over product quality under the State Council for
authentication of enterprise quality system. Where the enterprise has passed the
test, the authentication agency shall issue an authentication certificate of
enterprise quality system.

The State promotes the product quality authentication system by taking reference
to the internationally advanced product standards and technical requirements. An
enterprise may on voluntary basis apply to the department in charge of
supervision over product quality under the State Council or to an authentication
agency approved by an organ authorized by the department in charge of
supervision over product quality under the State Council for authentication of
product quality. Where the enterprise has passed the authentication, the
authentication agency shall issue a product quality authentication certificate
and permit it to use the product quality authentication marks on its products or
packages.

Article 15 The State shall implement a product quality supervision and
inspection system with random checking as its main form. Products constituting
possible threats to the health or safety of human life and property, industrial
products bearing important influence on the national economy and the people’s
livelihood, and products with quality problems reported by consumers or relevant
organizations shall be subject to random checking. The samples shall be picked
out from the market or from the warehouse storing finished products for sale.
Such supervision and random checking shall be planned and organized by the
department in charge of supervision over product quality under the State
Council. The administrative departments responsible for supervision over product
quality of the local people’s governments at or above the county level may also
organize supervision and random checking within their respective administrative
regions. Where a law provides otherwise on supervision and check over product
quality, such law shall apply.

The relevant department at local levels shall not randomly check the product
again which the State has randomly checked. The department at lower levels shall
not randomly check the product again which the department at higher level has
randomly checked.

Products may be inspected if supervision and random checking of such products so
require. The number of samples picked out for inspection shall not exceed
reasonable amount, and the inspection fee shall not be imposed upon the
inspected. Expenses incurred shall be disbursed in accordance with relevant
regulations of the State Council.

Where the manufacturer or seller have disputes on the inspection result, they
may, within fifteen days after receipt of the inspection result, apply the
inspection organ or its higher level for re-inspection. The organ undertaking
re-inspection shall deliver the result of re-inspection.

Article 16 Manufacturers and sellers shall not refuse the supervision and
inspection of their product quality in accordance with law.

Article 17 Where the product quality fails to pass the supervision and random
checking conducted in accordance with this Law, the organ conducting the
supervision and random checking shall order the manufacturer or seller to
rectify the matter within a prescribed period. Where the manufacturer or seller
fails to do so, the department at provincial level in charge of supervision of
product quality shall publicize the matter. Where the manufacturer or seller
fails the re-inspection after the publicizing, the said department shall order
it to suspend the business for internal rectification within a prescribed
period. Where the product is still found to be unqualified after the internal
rectification, the business license thereof shall be revoked.

Where serious product quality problem is found in supervision and random
checking, the manufacturer or seller shall be punished according to the
provisions of Chapter Five of this Law.

Article 18 When the department at or above county level in charge of supervision
over product quality, based on obtained evidence of suspected violation of this
Law or on secret report, make further investigations, it has the following
powers:

1) Conduct spot inspection on the site of production or sales suspected of
violation of this Law;
2) Investigate the legal person, person directly in charge, and other related
persons of the party concerned on matters regarding manufacturing or selling
activities suspected of violation of this Law;
3) Inspect and copy related contracts, invoices, account books or other related
documents of the party concerned;
4) Seal up or detain products that the inspector has grounds to think not up to
the national standards or industry standards for the protection of human health
or safety of human life and property, and seal up or detain the raw materials,
auxiliary materials, packaging materials, tools for production or sale of the
product.

The department for administration of industry and commerce at or above the
county level has the powers provided in the preceding paragraphs of this Article
in the investigation on activities in violation of this Law.

Article 19 Product testing and inspection institutions must have appropriate
testing facilities and capabilities, and may undertake the work of testing and
inspection of product quality only after being appraised and endorsed by the
department in charge of supervision over product quality under the people’s
government at or above the provincial level or an organization authorized by the
said department. Where laws and administrative regulations provide otherwise on
the institutions for testing and inspection of product quality, the provisions
of such laws and regulations shall apply.

Article 20 The social intermediary institutions on test and authentication of
product quality must be established according to law, and shall not be
affiliated with, or have any interest with administrative organs or other state
organs.

Article 21 The institutions on test and authentication of product quality must
issue the test results or authentication certificates objectively and fairly
according to related standards.

After issuing the authentication certificate, the institution on authentication
of product quality must, in accordance with related rules of the State, follow
up with inspections on the product on which the authentication mark is used.
Where the product on which the authentication mark is used is found unqualified,
said institution shall require the user of the mark to improve its product to
meet the standard. Where the case is serious, said institution shall cancel the
manufacturer or seller’s qualification to use the authentication mark.

Article 22 Consumers have the right to inquire the manufacturers and sellers
about the quality problem of their products. Consumers may also file complaints
with departments supervising product quality or with administrative departments
for industry and commerce or with any other department concerned. Said
departments shall be responsible for handling the case.

Article 23 Social organizations for the protection of the rights and interests
of consumers may suggest the departments concerned to handle the product quality
problems reported by consumers, and support consumers in bringing suits to a
people’s courts for damages caused by quality problems of products.

Article 24 Product-quality-supervising departments of the State Council, of the
people’s government of provinces, autonomous regions and municipalities directly
under the Central Government shall regularly publish the result of supervision
and random checking on product quality.

Article 25 Product-quality-supervising organs, other State organs, and
product-quality-test institutions shall not recommend any product to society.
Nor shall they participate in business by way of “product quality guaranteed
because of manufacture under supervision” or “product quality guaranteed because
of sale under supervision”

Chapter Three Liabilities and Obligations of Manufacturers and Sellers for
Product Quality

Section One Manufacturer’s Liabilities and Obligations for Product Quality

Article 26 The Manufacturer shall be liable for the quality of products it
produces.

The products shall meet the following quality requirements:

1) Free from unreasonable dangers threatening the safety of human life and
property, and conforming to the national standards or industry standards
safeguarding the health or safety of human life and property where there are
such standards;
2) Possessing the properties and functions that they ought to possess, except
for those with functional defects already stated;
3) Conforming to the product standards marked on the products or the packages
thereof, and to the quality status indicated by way of product instructions,
samples, etc.

Article 27 The marks on the products or the packages thereof shall be truthful,
and meet the following requirements:

1) With certificate showing that the product has passed quality inspection;
2) With name of the producer, name and address of the factory that manufactured
the product, all marked in Chinese;
3) With Chinese descriptions of the specifications, grade of the product, the
main ingredients and their quantities contained in the product, where it is
necessary for such particulars to be indicated according to the special nature
of the product or instructions for use of the product. Where they should be
known to consumers in advance, the manufacturer shall indicate such particulars
on the outer packaging, or provide related materials to consumers beforehand;
4) With explicit description of production date, safe-use period or date of
invalidity marked on a prominent place where the product is to be used within a
prescribed period;
5) With warning signs or warning statements in Chinese for products which, if
improperly used, may cause damage to the products per se, or may endanger the
safety of human life or property.

Food products without package and other products without package because it is
difficult to be marked for their special nature may dispense with product marks.

Article 28 The packages of dangerous products such as fragile, inflammable,
explosive, poisonous, erosive, radioactive products, products that should be
kept upright during storage and transportation, and other products with special
requirements, must meet the corresponding packaging requirements and carry
warning signs or warning statements in Chinese indicating instructions on
storage and transportation.

Article 29 No manufacturer shall produce any product that the State has
officially ordered to eliminate with the passage of time.

Article 30 No manufacturer shall forge the origin of a product, nor shall it
forge or falsely use another manufacturer’s name and address.

Article 31 No manufacturer shall forge or falsely use another manufacturer’s
product quality marks such as quality authentication marks.

Article 32 The manufacturer shall not adulterate, substitute a fake product for
a genuine one, a defective product for a high-quality one, or pass an
unqualified product off as a qualified one.

Section Two Seller’s Liabilities and Obligations for Product Quality

Article 33 The seller shall establish and implement the check-before-acceptance
system and examine the quality certificates and other marks when replenishing
its stock.

Article 34 The seller shall take measures to maintain the quality of products it
sells.

Article 35 The seller shall not sell products that the State has explicitly
ordered to eliminate with passage of time or ordered to stop sale, and shall not
sell products that have gone ineffective or gone deteriorated in quality.

Article 36 The marks on the products which the seller sells shall conform with
the provisions of Article 27 of this Law.

Article 37 The seller shall not forge the origin of the products, forge or
falsely use other’s factory name or address.

Article 38 The seller shall not forge or falsely use product quality marks such
as quality authentication certificates.

Article 39 In selling products, the seller shall not adulterate, substitute a
fake product for a genuine one, a defective product for a high-quality one, or
pass an unqualified product off as a qualified one.

Chapter Four Compensation for Damages

Article 40 A seller shall be responsible for repair or change of the product, or
for refund of a product if it is sold under any of the following circumstances,
and, where the product has caused any loss to the consumers, the seller shall
compensate for such loss:

1) The product does not have the functions it ought to have, and the seller has
not given prior explanation thereabout;
2) The product does not conform to the product standards indicated on the
product or its package;
3) The quality of the product does not conform to the quality status indicated
by way of product descriptions or samples, etc.

If, after repair, change, refund or compensation has been made according to the
provisions of the preceding paragraph, the liability is attributed to the
manufacturer or to another seller who had supplied the product (hereinafter
referred to as supplier), the seller shall have the right to recover his losses
from the manufacturer or the supplier.

Where a seller fails to make repair, change, refund or compensation in
accordance with the provisions of the first paragraph, the department for
supervision over product quality or the administrative department for industry
and commerce shall order the seller to make rectification.

Where sales contracts or contracts for processing concluded between
manufacturers, between sellers, or between manufacturers and sellers provide
otherwise, the parties concerned shall act in accordance with the provisions of
the contracts.

Article 41 A manufacturer shall be liable for compensation if its defective
product causes damage to human life or property other than the defective product
itself (hereinafter referred to as another person’s property).

A manufacturer shall not be liable for compensation if it can prove the
existence of any of the following circumstances:

1) The product has not been put in circulation;
2) The defect causing the damage did not exist when the product was put in
circulation;
3) The science and technology at the time the product was put in circulation was
at a level incapable of detecting the defect.

Article 42 Where, due to the fault of the seller, damage to human life or
another person’s property occurs, the seller shall be liable for compensation.

Where the seller can identify neither the manufacturer of the defective product
nor the supplier thereof, it shall be liable for compensation.

Article 43 Where a defective product causes damage to human life or another
person’s property, the victim may claim damage either from the manufacturer or
from the seller of such product. Where the liability falls on the manufacturer,
but the seller has made the compensation, the seller shall have the right to
recover the loss from the manufacturer. Where the liability falls on the seller,
but the manufacturer has made the compensation, the manufacturer shall have the
right to recover the loss from the seller.

Article 44 Where bodily injury is caused by a defective product, the infringer
shall compensate for the medical expenses, the nursing fee incurred during the
period of treatment and other economic losses of the infringed such as the
decreased earnings due to loss of his working time. Where the infringed becomes
disabled, the infringer shall also pay such fees as the fee for self-help
apparatus, the subsistence allowance, damage for the disabled, and necessary
living expenses of the person (s) the infringed maintains. Where such defect
causes death of the infringed, the infringer shall also pay the funeral
expenses, the death damage, and necessary living expenses of the person(s)
supported by the infringed before his death.

Where the defective product causes damage to the property of the infringed, the
infringer shall restore the damaged property to its original state, or
compensate for the depreciated value of the property. Where the infringed
suffers any other serious losses, the infringer shall also compensate for such
losses.

Article 45 The limitation period for bringing an action for damages arising from
the defect of a product is two years, counting from the day when the party
concerned knew or should have known the infringement of his rights and
interests.

The right to claim damages from defective products shall be lost upon completion
of ten years from the day when the defective product causing the damage is
delivered to the first consumer, except that the explicitly stated period for
safe use has not expired.

Article 46 "Defect" referred to in this Law means the unreasonable danger
existing in a product that endangers the safety of human life or other person’s
property. Where there are national or industry standards safeguarding the health
or safety of human life and property, "defect" means inconformity to such
standards.

Article 47 Where a civil dispute over product quality arises, the parties
concerned may seek a settlement through negotiation or mediation. Where the
parties are unwilling to resort to negotiation or mediation, or the
negotiation/mediation fails, they may apply to an arbitration organization for
arbitration as agreed upon between the parties. Where the parties fail to reach
an arbitration agreement, or the arbitration agreement is invalid, they may file
a suit directly with a people’s court.

Article 48 The arbitration organization or the people’s court may entrust an
organization in charge of product quality inspection specified in Article 19 of
this Law with product quality inspection.

Chapter Five Penalty Provisions

Article 49 Where anyone produces or sell products that do not comply with the
relevant national or industry standards safeguarding the health or safety of
human life and property, the related organ shall order it to stop the production
or sale, confiscate the products produced or for sale in violation of law, and
impose a fine less than three times of the value of the products produced, for
sale or sold out. Where there exist illegal earnings, the earnings shall be
confiscated concurrently. Where the case is serious, the business licence shall
be revoked. Where the activities constitute a crime, the offender shall be
prosecuted for criminal liabilities in accordance with law.

Article 50 Where a manufacturer or a seller adulterates, passes a fake product
off as a genuine one, passes a defective product off as a high-quality one, or
passes an unqualified product as a qualified one, the related organ shall order
it to stop the production or sale, confiscate the products produced or for sale
in violation of law, and impose a fine more than fifty percent but less than
three times of the value of the products produced, for sale or sold out. Where
there exist illegal earnings, the earnings shall be confiscated concurrently.
Where the case is serious, the business licence shall be revoked. Where the
activities constitute a crime, the offender shall be prosecuted for criminal
liability in accordance with law.

Article 51 Where anyone produces or sells products the State has explicitly
ordered to eliminate with the passage of time, or sells products the State has
explicitly ordered to stop the sale, the related organ shall order it to stop
the production or sale, confiscate the products produced or for sale in
violation of law, and impose a fine less than the value of the products
produced, for sale or sold out. Where there exist illegal earnings, the earnings
shall be confiscated concurrently. Where the case is serious, the business
licence shall be revoked.

Article 52 Where anyone sells products that have gone ineffective or gone
deteriorated in quality, the related organ shall order it to stop the sale,
confiscate the products for sale in violation of law, and impose a fine less
than two times of the value of the products for sale or sold out. Where there
exist illegal earnings, the earnings shall be confiscated concurrently. Where
the case is serious, the business licence shall be revoked. Where the activities
constitute a crime, the offender shall be prosecuted for criminal liability in
accordance with law.

Article 53 Where anyone forges the origin of the products, forges or falsely
uses the factory name or address of others, forges or falsely uses product
quality marks such as quality authentication certificates, the related organ
shall order it to rectify the matter, confiscate the products produced or for
sale in violation of law, and impose a fine less than the value of the products
produced, for sale or sold out. Where there exist illegal earnings, the earnings
shall be confiscated concurrently. Where the case is serious, the business
licence shall be revoked.

Article 54 Where the product mark does not conform to the provisions of Article
27, the related organ shall order the party concerned to rectify the matter.
Where the marks on packaged products do not conform to 4) and 5) of Article 27,
and the case is serious, the related organ shall order the party concerned to
stop the production or sale, and impose a fine less than thirty percent of the
value of the products produced, for sale or sold out. Where there exist illegal
earnings, the earnings shall be confiscated concurrently.

Article 55 In selling the products prohibited as stipulated in Article 49 to 53
of this law, where the seller has sufficient evidence proving that it does not
know that the products is prohibited for sale and truthfully tells the source of
the product, it may receive a lighter penalty or a mitigated penalty.

Article 56 Where the manufacturer or seller refuses to receive lawful
supervision or check of its products, it shall be warned and ordered to rectify
the matter. Where the manufacturer or seller refuses to make the rectification,
it shall be ordered to suspend the business for internal rectification. Where
the case is very serious, the business license of the law-breaker shall be
revoked.

Article 57 Where an institution for inspection or authentication of product
quality forges inspection data or issues a false certificate, the related organ
shall order it to make rectification, impose a fine ranging from 50, 000 yuan to
100, 000 yuan upon the institution, and a fine ranging from 10, 000 yuan to 50,
000 yuan upon the person directly liable for the wrongdoing. Where there exists
illegal income, the income shall be confiscated. Where the case is serious, the
related organ shall cancel the institution’s qualification for inspection or
authentication. Where the activities constitute a crime, the institution and the
person directly liable shall be prosecuted for criminal liabilities in
accordance with law.

Where the inspection data or certificate of an institution for inspection or
authentication of product quality is untrue and thus causes losses, the
institution shall be held liable for the damages accordingly. Where serious
losses occur, the related organ shall cancel its qualification for inspection or
authentication.

Where the institution for authentication of product quality, in violation of
paragraph two of Article 21, does not order the manufacturer/seller to make
rectification or cancel the manufacturer/seller’s qualification to use the
authentication mark when the manufacturer/seller uses authentication mark on
products that do not meet the authentication criteria, and causes losses to
consumers, said institution shall bear the joint and several liabilities with
the manufacturer/seller. Where the case is serious, the related organ shall
revoke the institution’s qualification for authentication.

Article 58 Where an association or social intermediary institution makes
warranties or guarantees for the quality a certain product, but the product
warranted or guaranteed does not meet the quality criteria and causes losses to
consumers, said association or institution shall bear joint and several
liabilities with the manufacturer and seller of the product.

Article 59 Where anyone makes false statement of its product quality in
advertisement and cheats or misleads consumers, it shall be prosecuted for legal
liabilities in accordance with the Advertisement Law of the People’s Republic of
China.

Article 60 The related organ shall confiscate the raw materials, auxiliary
materials, packaging materials and manufacturing apparatus specially for
production of products specified in Article 49 and Article 51 of this Law, or
for production of fake products.

Article 61 Where anyone knows or ought to know the products are prohibited by
this Law for production or sale, but still provides such convenience as
transportation, safe-keeping and storage, or provides techniques for
manufacturing of fake products, the related organ shall confiscate all the
income from provision of conveniences such as transportation, safe-keeping and
storage, and all the income from provision of techniques for manufacturing of
fake products, and impose a fine of more than fifty percent but less than three
times of the illegal income concurrently. Where the provider’s activities
constitute a crime, it shall be prosecuted for criminal liabilities in
accordance with law.

Article 62 Where a service provider uses products prohibited for sale by Article
49 to 52 of this Law in its profit-seeking service, the related organ shall
order it to stop the usage of such products. Where the service provider knows or
ought to know that the product it is using falls within the scope prohibited for
sale by this Law, the related organ shall punish the service provider citing the
punishing measures for sellers with respect to the value of the products used or
to be used in violation of law.

Article 63 Where anyone hides, removes, sells off or destroys the articles
sealed up or detained by the organ for supervision of product quality or by the
administrative organ for industry and commerce, said organ shall impose upon it
a fine less than three time of the value of the articles hidden, removed, sold
off or destroyed, and confiscate the illegal income (if any) concurrently.

Article 64 Where anyone, in violation of this Law, is held liable for civil
damages and payment of fines or forfeitures, and its property is not enough to
pay all the damages, fines and forfeitures concurrently, it shall pay the civil
damage first.

Article 65 Where any functionary of the people’s government at any level and any
functionary of other state organ has committed any of the following offences, he
shall be given administrative sanction. Where the offence constitutes a crime,
he shall be prosecuted for criminal liabilities:

1) Enshielding or letting loose the activities in the production or sale in
violation of this Law;
2) Divulging information to the party who produces or sells products in
violation of this Law to help the latter to evade investigation and punishment;
3) Obstructing or intervening in the product-quality-supervising organ’s or the
administrative organ for industry and commerce’s investigation and punishment of
manufacturing or selling activities in violation of this Law, and causing
serious results.

Article 66 Where, in the cause of inspection and random checking, the organ
supervising product quality asks for more samples than the stipulated amount, or
charges the inspected any inspection fee, the higher level of the
product-quality-inspection organ or the state supervision organ shall order it
to return the surplus amount of samples and the inspection fee. Where the case
is serious, the person directly in charge and other people held directly liable
shall be given disciplinary sanctions

Article 67 Where the product-quality-inspection organ or other state organ, in
violation of Article 25 of this Law, recommend any manufacturer’s products to
society, or participate in any business by way of “guaranteeing the quality by
supervising the manufacturing” or “guaranteeing the quality by supervising the
sale”, its higher level or state supervision organ shall order it to rectify the
matter, eliminate the influence, and confiscate the income (if any). Where the
case is serious, the person directly in charge and other people held directly
liable shall be given disciplinary sanctions in accordance with law.

Where a product-quality-testing institution committed the offence described in
the preceding paragraph, the product-quality-supervising organ shall order it to
rectify the matter, eliminate the bad influence, and confiscate any illegal
income. A fine less than one time of the illegal income may also be imposed upon
the said institution. Where the case is serious, the related organ shall revoke
the institution’s qualification for testing of product quality.

Article 68 Where the product-quality-supervising organ or the organ for
administration of industry and commerce abuses its power, neglects its duties,
engages in malpractice or distorts law to seek illegal interest, and thus
constitutes a crime, it shall be prosecuted for criminal liabilities. Where the
offence has not constituted a crime yet, it shall be given disciplinary
sanctions.

Article 69 Whoever obstructs, by means of violence or intimidation,
product-quality-supervising organ or the organ for administration of industry
and commerce from carrying out their duties according to law shall be prosecuted
for criminal liabilities. Whoever refuses or impedes the work of said organs
without resorting to violence or intimidation shall be punished by the public
security organs in accordance with the relevant provisions of the Regulations on
Administrative Penalties for Public Security.

Article 70 The administrative punishment in the form of revocation of business
license provided for in this Law shall be decided by the organ for
administration of industry and commerce, while the administrative punishment
provided for in Article 49 to 57 and in Article 60 to 63 of this Law shall be
decided by the product-quality-supervising organ or the organ for administration
of industry and commerce according to the functions and powers prescribed by the
State Council. Where the laws or administrative regulations provide otherwise as
to the authorities exercising the power of administrative punishment, the
relevant provisions of such laws and administrative regulations shall apply.

Article 71 With respect to the products confiscated in accordance with this Law,
the related organ shall destroy or dispose of in other ways in accordance with
related provisions of the State.

Article 72 The value of the products stipulated in Article 49 to 54, Articles 62
and 63 shall be calculated by the marked price of the products manufactured or
for sale in violation of this Law. Where there exists no marked price, the value
thereof shall be calculated by the market price of the products of the same
category.

Chapter Six Supplementary Provisions

Article 73 The State Council and the Central Military Commission shall provide
otherwise on the supervision and administration of the quality of products for
the armed forces.

Where laws or administrative regulations provide otherwise on liabilities for
damages caused by nuclear facilities and nuclear products, such laws and
regulations shall apply.

Article 74 This Law shall come into force as of September 1, 1993.