Laws of the People's Republic of China

    For the purpose of punishing the crimes of production and sale
of fake or substandard commodities, safeguarding human health and
the safety of person and property, protecting the lawful rights and
interests of users and consumers, and maintaining social and
economic order, the following supplementary provisions are made to
the Criminal Law:

    1. Where a producer or seller mixes impurities or imitations
into a product, or passes a fake product off as a genuine one, or
passes a defective product off as a high-quality one, or passes a
substandard product off as a standard one, if the unlawful earnings
obtained therefrom amount to not less than 20,000 yuan but less
than 100,000 yuan, the offender shall be sentenced to fixed-term
imprisonment of not more than two years or criminal detention and
may concurrently be punished with a fine; or may be punished with
an administrative sanction if the circumstances are relatively
minor; if the unlawful earnings amount to not less than 100,000
yuan but less than 300,000 yuan, the offender shall be sentenced to
fixed-term imprisonment of not less than two years but less than
seven years with a concurrent punishment of fine; if the unlawfull
earnings amount to not less than 300,000 yuan but not more than one
million yuan, the offender shall be sentenced to fixed-term
imprisonment of not less than seven years with a concurrent
punishment of fine or confiscation of property; and if the
unlawfull earnings amount to not less than one million yuan, the
offender shall be sentenced to fixed-term imprisonment of fifteen
years  or life imprisonment with a concurrent punishment of confiscation of property.

    2. Anyone who produces or sells fake medicine definitely
harmful to human health shall be sentenced to fixed-term
imprisonment of not more than three years or criminal detention
with a concurrent punishment of fine; if the offence has caused
serious harm to human health, the offender shall be sentenced to
fixed-term imprisonment of not less than three years but not more
than ten years with a concurrent punishment of fine; if the offence
has caused death of a person or any other especially serious harm
to human health, the offender shall be sentenced to fixed-term
imprisonment of not less than ten years or life imprisonment or
death penalty with a concurrent punishment of fine or confiscation
of property.

    Anyone who produces or sells medicine of inferior quality and
thereby has caused serious harm to human health shall be sentenced
to fixed-term imprisonment of not less than three years but not
more than ten years with a concurrent punishment of fine; if the
consequences are especially serious, the offender shall be
sentenced to fixed-term imprisonment of not less than ten years or
life imprisonment with a concurrent punishment of fine or
confiscation of property.

    "Fake medicine" mentioned in this Article refers to a medicine
or a non-medical substance to be categorized as or handled as fake
medicine in accordance with the provisions of Pharmaceutical
Administration Law of the People's Republic of China. "Medicine of inferior quality" mentioned in this Article refers to a medicine to
be categorized as a medicine of inferior quality in accordance with
the provisions of Pharmaceutical Administration Law of the People's
Republic of China.

    3. Anyone who produces or sells food that does not conform to
hygiene standards and thereby results in a serious food-poisoning
accident or any serious disease caused by food-borne bacteria, thus
seriously harming human health, shall be sentenced to fixed-term
imprisonment of not more than seven years with a concurrent
punishment of fine; if the consequences are particularly serious,
the offender shall be sentenced to fixed-term imprisonment of not
less than seven years or life imprisonment with a concurrent
punishment of fine or confiscation of property.

    Anyone who mixes the food be produces or sells with toxic or
harmful non-food stuffs shall be sentenced to fixed-term
imprisonment of not more than five years or criminal detention and
may concurrently or exclusively be punished with a fine; if the
offence results in a serious food-poisoning accident or any serious
disease caused by food-borne bacteria, thus seriously harming human
health, the offender shall be sentenced to fixed-term imprisonment
of not less than five years but not more than ten years with a
concurrent punishment of fine; and if the offence has caused death
of a person or any other particularly serious harm to human health,
the offender shall be sentenced to fixed-term imprisonment of not
less than ten years or life imprisonment or death penalty with a
concurrent punishment of fine or confiscation of property.

    4. Anyone who produces medical appliances or medical hygiene
materials that do not conform to the national or trade standards
safeguarding human health or who sells such appliances or materials
while clearly knowing their inconformity to the national or trade
standards safeguarding human health, thereby seriously harming
human health, shall be sentenced to fixed-term imprisonment of not
more than five years with a concurrent punishment of fine; if the
consequences are particularly serious, the offender shall be
sentenced to fixed-term imprisonment of not less than five years
but not more than ten years with a concurrent punishment of fine;
if the circumstances are especially flagrant, the offender shall be
sentenced to fixed-term imprisonment of not less than ten years or
life imprisonment with a concurrent punishment of fine or
confiscation of property.

    5. Anyone who produces electrical appliances, pressure
containers, explosive or inflammable products or any other products
that do not conform to the national or trade standards safeguarding
the safety of person or property or who sells such products while
clearly knowing their inconformity to the national or trade
standardssafeguarding the safety of person or property, thereby
causing serious consequences, shall be sentenced to fixed-term
imprisonment of not more than five years or criminal detention and
be concurrently punished with a fine; if the consequences are
particularly serious, the offender shall be sentenced to fixed-term
imprisonment of not less than five years with a concurrent
punishment of fine.

    6. Anyone who produces fake pesticides, fake animal
pharmaceuticals or fake chemical fertilizers, or sells pesticides,
animal pharmaceuticals, chemical fertilizers or seeds while clearly
knowing that such products are fake or no longer effective, or any
producer or seller who passes substandard pesticides, animal
pharmaceuticals, chemical fertilizers or seeds off as those up to
standard and thereby causes considerable losses to production,
shall be sentenced to fixed-term imprisonment of not more than
three years or criminal detention and be concurrently or
exclusively punished with a fine; if the losses caused to
production are heavy, the offender shall be sentenced to fixed-term
imprisonment of not less than three years but not more than seven
years with a concurrent punishment of fine; if the losses  are
especially great, the offender shall be sentenced to fixed-term
imprisonment of not less than seven years or life imprisonment with
a concurrent punishment of fine or confiscation of property.

    7. Anyone who produces cosmetics that do not conform to the
hygiene standards, or sells cosmetics while clearly knowing its
inconformity with the hygienic standards and thereby cause serious
consequences, shall be sentenced to fixed-term imprisonment of not
more than three years or criminal detention, and may concurrently
or exclusively be punished with a fine.

    8. Anyone who produces or sells products listed in Article 2
to Article 7 of this Decision, if the case does not constitute a
crime as stipulated in the respective Articles but involves an
unlawful earning of more than 20,000 yuan, shall be punished in
accordance with the provisions of Article 1 of this Decision.

    Anyone who produces or sells products listed in Article 2 to
Article 7 of this Decision, if the case constitutes a crime as
stipulated in the respective Articles as well as a crime as
stipulated in  Article 1 of this Decision, shall be punished in
accordance with the provisions demanding a heavier punishment.

    9. Any enterprise or institution that commits a crime as
stipulated in Article 2 to Article 7 of this Decision shall be
punished with a fine, and the persons directly in charge and other
persons held directly responsible shall be investigated for their
criminal responsibility in accordance with the provisions of the
respective Articles.

    Any enterprise or institution that commits a crime as
stipulated in Article 1 of this Decision shall be punished with a
fine, and if the circumstances are flagrant, the persons directly
in charge and other persons held directly responsible shall be
investigated for their criminal responsibility in accordance with
the provisions of Article 1 of this Decision.

    10. Any State functionary who exploits his office to
intentionally shield an enterprise, institution or a person from
prosecution, while clearly knowing that it or he is guilty of a
crime stipulated in this Decision, shall be investigated for
criminal responsibility by applying mutatis mutandis the provisions
of Article 188 of the Criminal Law.

    Any State functionary who is charged with the responsibility
of investigating an enterprise, institution or a person guilty of a crime listed in this Decision but fails to perform his duty as
stipulated by the law shall, in light of the different
circumstances, be investigated for criminal responsibility in
accordance with the provisions of Article 187 of the Criminal Law
or by applying mutatis mutandis the provisions of Article 188 of the Criminal Law.

    Any State functionary, who by abusing his power or practising
jobbery, retaliates against or frame up a person who exposes or
denounces any crime listed in this Decision shall be investigated
for criminal responsibility in accordance with the provisions of Article 146 of the Criminal Law.

    11. Whoever commits a crime as mentioned in any article of this Decision and is found to be a recidivist, shall be given a
heavier punishment.

    12. If a fine is sentenced in accordance with the provisions
of this Decision, the amount of the fine shall be not less than one
time but not more than five times of the unlawful earning.

    Whoever commits a crime as mentioned in any article of this
Decision and thereby causes losses to the victims shall, besides
being investigated for criminal responsibility in accordance with
this Decision, be sentenced according to law to compensation for
the losses incurred in light of the circumstances.

    Where a crime is committed as mentioned in any article of this
Decision, all his earning and property illegally obtained shall be
confiscated; Where a crime is committed as mentioned in Articles 2
to 7 of this Decision, the products illegally produced or marketed
as listed in these Articles shall be confiscated.

    13. This Decision shall enter into force as of September 1,
1993.