SAIC Issues Interim Measures for
the Administration of List of Enterprises
with Serious Illegal and Dishonest Acts
[Source: the China SAIC Official Website]
The Interim Measures for the Administration of List of Enterprises with Serious Illegal and Dishonest Acts (hereafter, the "Measures") was effective as of April 1, 2016 according to an Order of the State Administration for Industry and Commerce of the P.R. China (SAIC). The Measures is also the first ministerial regulation that governs “blacklist” of enterprises.
In the Measures, the SAIC sets forth the start date and allocation of administration duties for the List of Enterprises with Serious Illegal and Dishonest Acts ("ESIDA"), and that each local Administration for Industry & Commerce ("AIC") shall specify an agency to be responsible for a unified coordination of the administration of the ESIDA. The Measures requires AICs to work jointly with the IT departments to develop and modify relevant operation systems to promote the implementation of various task requirements.
The other focus of the Measures is to clearly set forth the addition/removal procedures for the ESIDA, the procedure of information exchange for non-local administrative penalty cases, publication of the addition/removal, competition of the addition of an ESIDA, and the process after an enterprise’s removal.
To meet with the aforesaid requirements, the SAIC demands to strengthen the IT support, develop an administration system or modules, set up an ESIDA database, improve the law enforcement and case processing systems, the publication and the registration system.
In particular, various local AICs will take multiple means synchronically to make the enterprises and the public understand this new "blacklist" system. When implementing each procedure of blacklisting, the local AICs are required to clearly inform the enterprise of the potential liabilities, available legal remedies and the means for credit recovery, as an effort to combine punishment and educational values.
To emphasize the key role of the "blacklist", the AICs shall rely on local laws and regulations and cross-ministerial cooperation mechanisms, and voluntarily submit the "blacklist", lists of enterprises with abnormal operations and other information to the relevant authorities as a practice of information sharing, concerted supervision and joint punishment. In addition, the AICs shall integrate the "blacklist" with other information to conduct big data analysis for organizing and judging issues of market orders based on which policies can be determined scientifically.
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