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PRODUCT QUALITY

Category  TECHNOLOGICAL CONTROL Organ of Promulgation  The Standing Committee of the National People's Congress Status of Effect  In Force
Date of Promulgation  1993-02-22 Effective Date  1993-09-01  

Law of the People's Republic of China on Product Quality



Contents
Chapter I  General Provisions
Chapter II  Supervision and Control over Product Quality
Chapter III  Liability and Obligation of Producers and Sellers  
Chapter IV  Compensation for Damage
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Adopted at the 30th Meeting of the Standing Committee of the

Seventh National People's Congress on February 22, 1993,
promulgated by Order No.71 of the President of the People's
Republic of China on February 22, 1993, and effective as of September 1, 1993)
Contents

    Chapter I    General Provisions

    Chapter II   Supervision and Control over Product Quality

    Chapter III  Liability and Obligation of Producers and Sellers      

                 Concerning Product Quality

        Section 1  Liability and Obligation of Producers Concerning        

                   Product Quality

        Section 2  Liability and Obligation of Sellers Concerning          

                   Product Quality

    Chapter IV  Compensation for Damage

    Chapter V   Penalty Provisions

    Chapter VI  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted to strengthen the supervision
and control over product quality, to define the liability for
product quality, to protect the legitimate rights and interests of users and consumers and to safeguard the socio-economic order.

    Article 2  Anyone who corducts activities of production and
sale of any product within the territory of the People's Republic
of China must abide by this Law.

    "Product" referred to in this Law means a product which is
processed or manufactured for the purpose of sale.

    This Law shall not apply to construction projects.

    Article 3  Producers and sellers shall be liable for product
quality in accordance with this Law.

    Article 4  It is prohibited to forge or falsely use
authentication marks, famous-and-excellent-product marks or other
product quality marks; it is prohibited to forge the origin of a
product, to forge or use the name and address of a factory of another producer; and it is prohibited to mix impurities or
imitations into products that are produced or sold, or pass a fake
product off as a genuine one, or pass a defective product off as a
high-quality one.

    Article 5  The State shall encourage the popularization of scientific methods in product quality control and the adoption of advanced science and technology. The State shall encourage
enterprises to make their product quality meet and even surpass
their respective trade standards, the national and international
standards. Units and individuals that have made outstanding
achievements in ensuring advanced product quality control and in
raising product quality to the advanced international standards
shall be awarded.

    Article 6  The department in charge of supervision and control
over product quality under the State Council shall be responsible
for nation-wide supervision and control over product quality. The
relevant departments under the State Council shall be responsible
for supervision and control 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 administrative regions. The relevant
departments in the local people's governments at or above the
county level shall be in charge of supervision and control over
product quality within the scope of their respective functions and
responsibilities.
Chapter II  Supervision and Control over Product Quality

    Article 7  The quality of a product shall be inspected and
proved to be up to the standards. No sub-standard product shall be
passed off as a product up to the standards.

    Article 8  Industrial products constituting possible threats to
the health or safety of human life and property must be in
compliance with the national standards and trade standards
safeguarding the health or the safety of human life and property;
In the absence of such  national standards or trade standards,
the product must meet the requirements for safeguarding the health
or safety of human life and property.

    Article 9  The State shall, in compliance with the
international quality control standards in general use, practise
a rule of authentication for enterprise quality An enterprise may
on voluntary basis apply to the department in charge of supervision
and control over product quality under the State Council or an
authentication agency approved by a department authorized by the
department in charge of supervision and control over product
quality under the State Council for authentication of enterprise
qualitysystem. With respect to the enterprise which has passed the
attestation, the authentication agency shall issue an
authentication certificate of enterprise quality system.

    The State shall practise a product quality attestation 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
and control over product quality under the State Council or to an
authentication agency approved by a department authorized by the
department in charge of supervision and control over product
quality under the State Council for authentication of product
quality. With respect to the enterprise which has passed the
authentication, the attestation agency shall issue a product
quality authentication certificate and permit it to use the
product quality authentication marks on its products or the
packages thereof.

    Article 10  The State shall, with respect to product quality,
enforce a 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, important industrial products
which have a bearing on the national economy and the people's
livelihood, and products with quality problems as reported by
users, consumers or relevant organizations shall be subjected to
random checking. Such supervision and random checking shall be
planned and organized by the department in charge of supervision
and control 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. However, overlapping
random checking shall be avoided. The results of random checking of product quality shall be made public. Where the law provides
otherwise with respect to the supervision over and inspection of product quality, the provisions of such law shall apply.

    Products may be inspected if the supervision and random
checking of such products so require, but no fees shall be charged
for such purposes from the enterprises concerned. Expenses thus
incurred shall be disbursed in accordance with the relevant
regulations of the State Council.

    Article 11  Product testing and inspection institutions must
have appropriate testing facilities and capabilities, and shall
undertake the work of testing and inspection of product quality
only after being appraised and endorsed by a department in charge
of supervision and control over product quality under the people's
government at or above the provincial level or an organization
authorized by the department. Where the laws, administrative rules
and regulations provide otherwise with respect to the institutions
for testing and inspection of product quality, the provisions of such laws, rules and regulations shall apply.

    Article 12  Users and consumers shall have the right to make
inquiriesto the producers and sellers about the quality of their
products. Where a complaint is made to a department in charge of supervision and control over product quality or to an
administrative department for industry and commerce or to any other
department concerned, such department shall be responsible for
handling the case.

    Article 13  Social organizations responsible for the protection
of the rights and interests of consumers may, with respect to
matters concerning product quality as reported by consumers,
suggest to the departments concerned that they handle the matters,
and may give support to consumers in bringing a suit to a people's
court with respect to the damage caused by quality problems of products.
Chapter III  Liability and Obligation of Producers and Sellers  
Concerning Product Quality

    Section 1  Liability and Obligation of Producers
Concerning Product Quality

    Article 14  Producers shall be liable for the quality of the
products they produce.

    The products shall meet the following quality requirements:

    (1) being free from unreasonable dangers threatening the
safety of human life and property, and conforming to the national
standards or trade 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 directions stating their functional
defects;

    (3) conforming to the product standards marked on the products
or the packages thereof, and to the state of quality indicated by
way of product directions, samples, etc.

    Article 15  All marks on the products or the packages thereof shall meet the following requirements:

    (1) with certificate showing that the product has passed
quality inspection;

    (2) with name of the product, name and address of the factory
that produced the product, all being marked in Chinese;

    (3) with corresponding indications regarding the
specifications, grade of the product, the main ingredients and
their quantities contained in the product, where such particulars
are to be indicated according to the special nature and
instructions for use of the product;

    (4) with production date, safe-use period or date of invalidity if the product is to be used within a time limit;

    (5) with warning marks or warning statements in Chinese for
products which, if improperly used, may cause damage to the
products perse, or may endanger the safety of human life or
property.

    Food products without package and other non-packed products
which are difficult to be marked because of their special nature
may dispense with product marks.

    Article 16  The packages of poisonous, dangerous or fragile
products, or products that should be kept upright during storage
and transportation, or other products with special requirements
must meet the corresponding requirements and carry warning marks or
warning statements in Chinese indicating directions for storage
and transportation.

    Article 17  No producer may produce any product that has been
officially eliminated by the State.

    Article 18  No producer may forge the origin of a product, nor
forge or falsely use another producer's name and address.

    Article 19  No producer may forge or falsely use another
producer's authentication marks, famous-and-excellent-product marks
or other product quality marks.

    Article 20 In  producing products, producers may not mix
impurities or imitations into the products, nor substitute a fake
product for a genuine one, a defective product for a high-quality
one, nor pass a substandard product off as a good-quality one.

    Section 2  Liability and Obligation of Sellers
Concerning Product Quality

    Article 21  A seller shall practise a check-for-acceptance
system while replenishing his stock, and examine the quality
certificates and other marks.

    Article 22  A seller shall adopt measures to keep the products
for sale in good quality.

    Article 23  A seller may not sell invalid or deteriorated
products.

    Article 24  The marks of a seller's products shall conform to
the provisions of Article 15 of this Law.

    Article 25  A seller may not forge the origin of a product,
nor forge or falsely use another producer's name and address.

    Article 26  A seller may not forge or falsely use another
producer's authentication marks, famous-and-excellent-product marks
or other product quality marks.

    Article 27  In selling products, sellers may not mix impurities
or imitations into the products, nor substitute a fake product for
a genuine one, a defective product for a high-quality one, nor pass
a substandard product off as a good-quality one.
Chapter IV  Compensation for Damage

    Article 28  A seller shall be responsible for repair, or change
of the product, or for refund of a product if the it is sold under
any of the following circumstances, and, where the product has
caused any loss on users or consumers, the seller shall compensate
for such loss:

    (1) not having the functions it ought to have, and no prior
explanation thereabout being given by the seller;

    (2) not conforming to the product standards marked on the
product or its package;

    (3) not conforming to the state of quality indicated by way of product directions or sample, etc.

    After repair, change, refund or compensation has been made
according to the provisions of the preceding paragraph, if the
liability is attributed to the producer 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 producer
or the supplier.

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

    Where contracts for purchase and sale of products or for processing
concluded between producers or sellers or between producers and sellers
provide otherwise, the parties concerned shall act in accordance
with the provisions of the contracts.

    Article 29  A producer shall be liable for compensation if his
defective product causes damage to human life or property other
than the defective product itself (hereinafter referred to as
another person's property).

    A producer shall not be liable for compensation if he 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 at the time
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 30  Where damage to human life or another person's
property is due to a product's defect caused by the fault of a
seller, the seller shall be liable for compensation.

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

    Article 31  Where a defective product causes damage to human
life or another person's property, the victim may claim
compensation from the producer and may also claim compensation from
the seller of such product. Where the liability falls on the
producer, but the seller has made the compensation, the seller
shall have the right to recover the loss from the producer. Where
the liability falls on the seller, but the producer has made the
compensation, the producer shall have the right to recover the loss
from the seller.

    Article 32  Where bodily injury is caused by a product due to
its defect, the infringer shall compensate for the medical expenses
of the infringed, the decreased earnings due to the loss of his
working time as well as the subsistence allowance if the infringed
is disabled; where such defect causes death of the infringed, the
infringer shall also pay the funernal expenses, the pension for the
family of the deceased and the living expenses necessary for any
other person(s) supported by the decased  before his death.

    Where damage is caused to the property of the infringed is
caused due to the defect of a product, the infringer shall restore
the damaged property to its original state, or pay compensation at
the market price. Where the infringed suffers any other serious
losses, the infringer shall also compensate for such losses.

    Article 33  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 for damages from defective products shall
be forfeited upon completion of ten years from the day when the
defective product causing the damage is delivered to the first user
or consumer, except that the clearly stated safe-use period has not
expired.      

    Article 34  "Defect" referred to in this Law means the
unreasonable danger existing in a product which endangers the
safety of human life or another person's property; where there are
national or trade standards safeguarding the health or safety of human life and property, "defect" means inconformity to such
standards.

    Article 35  Where a civil dispute concerning product quality
arises, the parties concerned may seek a settlement through
negotiation or mediation. If the parties are unwilling to resort to
negotiation or mediation, or negotiation or mediation provies to be
unsuccessful, they may apply to an arbitration organization for
arbitration as agreed upon between the parties; if the parties fail
to reach an arbitration agreement, they may bring a suit before a
people's court.

    Article 36  The arbitration organization or the people's court
may entrust an organization in charge of product quality inspection
specified in Article 11 of this Law with product quality
inspection.
Chapter V  Penalty Provisions

    Article 37  Where products produced do not comply with the
relevant national or trade standards safeguarding the health or
safety of human life and property, the producer shall be ordered
to stop the production, the products and earnings illegally
produced and made shall be confiscated. And, a fine from twice to
five times the amount of the unlawful earnings shall be imposed
concurrently, and the business licence may be revoked; if the act
constitutes a crime, the offender shall be investigated for
criminal responsibility according to law.

    Where products sold do not comply with the relevant national
or trade standards safeguarding the health or safety of human life
and property, the seller shall be ordered to stop the sale. If a
seller intentionally sells products not complying with the relevant
national or trade standards safeguarding the health and safety of human life and property, the products for illegal sale and the
unlawful earnings thus made shall be confiscated. And, a fine from
twice to five times the unlawful earnings shall be imposed
concurrently, and the business licence may be revoked; if the act
constitutes a crime, the offender shall be investigated for
criminal responsibility according to law,.

    Article 38  Where a producer or a 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 good-quality one, the
producer or seller shall be ordered to stop production or sale, the
unlawful earnings shall be confiscated. And, a fine from twice to
five times his unlawful earnings shall be imposed concurrently, and
the business licence may be revoked; if the act constitutes a
crime, the offender shall be investigated for criminal
responsibility according to law.

    Article 39  Where a product which has been officially
eliminated by the State is produced, the producer shall be ordered
to stop the production, the products and earnings illegally
produced and made shall be confiscated. And, a fine from twice to
five times the unlawful earnings shall be imposed concurrently, and
the business licence may be revoked.

    Article 40  Where invalid or deteriorated products are sold,
the seller shall be ordered to stop the sale, the products for
illegal sale and the unlawful earnings shall be confiscated. And,
a fine from twice to five times the unlawful earnings shall be
imposed concurrently, and the business licence may be revoled; if
the act constitutes a crime, the offender shall be investigated for
criminal responsibility according to law.

    Article 41  Where a producer or a seller forges the origin of a product or falsely uses another producer's name and address, or
forges or falsely uses authentication marks,
famous-and-excellent-product marks or other product quality marks,
the producer or seller shall be ordered to make public
rectification, and the unlawful earnings shall be confiscated; a
fine may be imposed concurrently.

    Article 42  Where anyone sells or purchases products mentioned
in Articles 37 to 40 of this Law by offering or accepting bribes or
other unlawful means and if the act constitutes a crime, the
offender shall be investigated for criminal responsibility
according to law.

    Article 43  Where the marks of a product do not comply with the
provisions of Article 15 of this Law, the producer or seller
concerned shall be ordered to make rectification; where the marks
of the packed products do not comply with the provisions of item
(4) or (5) of Article 15 of this Law and if the case is serious,
the producer or seller concerned may be ordered to stop production
or sale. And, a fine from 15% to 20% of the unlawful earnings may
be imposed concurrently.

    Article 44  Whoever forges inspection data or inspection
conclusion of a product shall be ordered to make rectification, and
a fine from twice to three times the inspection fee may be imposed.
If the circumstance is serious, the business licence shall be
revoked; where the act constitutes a crime, the person held
directly responsible shall be investigated for criminal
responsibility by applying mutatis mutandis the provisions of Article 167 of the Criminal Law.

    Article 45  An administrative sanction in the form of revocation of business licence provided for in this Law shall be
decided by the administrative department for industry and commerce,
while other administrative sanctions shall be decided by the
department responsible for supervision over product quality or the
administrative department for 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 sanctions, the
relevent provisions of such laws and administrative regulations
shall apply.

    Article 46  If a party is not satisfied with the decision on
administrative sanction, it may, within 15 days of the receipt of the sanction notice, apply for reconsideration to the authorities
at the next higher level to the authorities that have made the
decision on sanction; the party may also bring a suit in a people's
court directly within 15 days of the receipt of the sanction
notice.

    The authorities responsible for reconsideration shall make a
reconsideration decision within 60 days of the receipt of the
application for reconsideration. If a party concerned is not
satisfied with the reconsideration decision, it may bring a suit in
a people's court within 15 days of the receipt of such decision. If
no decision has been made by the authorities responsible for
reconsideration upon the expiry of the time limit, the party
concerned may bring an action in a people's court within 15 days of the expiry of the time limit for reconsideration.

    If the party concerned does not apply for reconsideration, nor
bring a suit in a people's court upon the expiry of the time limit,
nor carry out the decision on sanction, the authorities that have
made the decision on sanction may apply to the people's court for
compulsory enforcement.

    Article 47  Any State functionary engaged in the work of supervision and control over product quality, who abuses power,
neglects duty, engages in malpractice for private  benifit, shall
be investigated for criminal responsibility if his act constitutes
a crime; if his act does not constitute a crime, he shall be
subjected to administrative sanction.

    Article 48  Any State functionary who clearly knows that an
enterprise, institution or individual has committed criminal
actions in violation of this Law, and takes advantage of his
position to protect the offenders intentionally from prosecution,
shall be investigated for criminal responsibility according to law.

    Article 49  Whoever obstructs, by means of violence or
intimidation, State functionaries engaged in the work of supervision and control over product quality from carrying out
their duties according to law shall be investigated for criminal
resposibility in accordance with the provisions of Article 157 of the Criminal Law; whoever refuses or impedes, without resorting to
violence or intimidation, State functionaries engaged in the work
of supervision and control over product quality to carry out their
duties shall be punished by the public security organs in
accordance with the relevant provisions of the Regulations on
Administrative Penalties for Public Security.
Chapter VI  Supplementary Provisions

    Article 50  Measures for supervision and control over quality
of military industrial products shall be formulated separately by
the State Council and the Central Military Commission.

    Article 51  This Law shall come into force as of September 1,
1993.



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