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Procedures of Shanghai Municipality on Administration of Production Permit

Procedures of Shanghai Municipality on Administration of Production Permit
 
(Promulgated by the Shanghai Municipal People' s Government on November 20, 1998)
    
     Article 1 Basis
     These Procedures are formulated according to Article 6 of the Regulations of Shanghai Municipality on Supervision Over Product Quality.
     Article 2 License System
     This Municipality implements an administrative system of production permit (hereinafter referred to as permit system) on the products involving personal safety and health, and other important products (hereinafter referred to as products).
     Article 3 Scope of Application
     These Procedures shall apply to the products to be produced or sold under permit system in this Municipality and other related administrative activities.
     Article 4 Competent Authorities
     Shanghai Municipal Technology Supervision Bureau (hereinafter referred to as SMTSB) shall be responsible for the verification and issuance of production permit, and its supervision and administration in this Municipality.
     Article 5 Products Under Administration of Production Permit and Rules for Check-up
     SMTSB shall specify the products subject to production permit administration and shall publish such product list upon the approval from the Shanghai Municipal People' s Government.
     SMTSB shall organize relevant departments and experts to set up rules for product check-up in the light of the characteristics of products under production permit administration.
     Article 6 Public Announcement
     SMTSB shall make public announcement on the following items within thirty days after the rules for product check-up have been set:
     1. Time limit for an enterprise to file its application;
     2. Time limit for the evaluation, examination and inspection of the applicant enterprise; and
     3. The starting date and ending date of the implementation of the production permit system.
     Article 7 Prerequisite for Application
     An enterprise that applies for producing the product under production permit administration system shall meet the following requirements:
     1. The product quality shall conform to the State standards, professional criteria or local standards of this Municipality;
     2. Having the design of the product and technological documents that are drawn through due process stipulated by law, and are capable to direct correctly the production;
     3. Having production equipment, technological devices, and means of testing that can guarantee the quality of the product;
     4. Having a quality testing department or professional quality testing personnel, and a strict quality control system; and
     5. All staff members of the enterprise that are related with the quality of the product are competent at their respective jobs.
     Article 8 Application Materials
     The enterprise that meets the requirements stipulated in Article 7 of these Procedures shall, within the specified application time limit, apply to SMTSB by submitting the following documents:
     1. Application letter;
     2. A copy of business license; and
     3. Overall performance test report on the product quality.
     Article 9 Evaluation and Examination
     SMTSB shall, within the specified time limit, evaluate and examine the applicant' s quality system and inspect the product quality according to the rules for product check-up.
     Article 10 Verification and Issuance of Production Permit
     After evaluation, examination and inspection, SMTSB shall issue production permit to the enterprise that meets any of the following situations:
     1. The enterprise passes the evaluation and examination of the quality system and the product quality inspection;
     2. The enterprise passes the evaluation and examination of the quality system but not the product quality inspection; and later passes the inspection after rectification within the time limit; or
     3. The enterprise passes the product quality inspection but not the evaluation and examination of the quality system; and later passes the evaluation and examination after rectification within the time limit.
     Article 11 Cases of Non-issuance
     After evaluation and examination, SMTSB shall not issue production permit to the enterprise that is under any of the following situations:
     1. The enterprise fails to pass the evaluation and examination of the quality system and the product quality inspection;
     2. The enterprise passes the evaluation and examination of the quality system but not the product quality inspection; and later still fails to pass the inspection after rectification within the time limit; or
     3. The enterprise passes the product quality inspection but not the evaluation and examination of the quality system; and later still fails to pass the evaluation and examination after rectification within the time limit.
     The enterprise that fails to obtain the production permit shall be forbidden to produce the product under administration of production permit.
     Article 12 Indication of Production Permit Number and Mark
     The enterprise that obtains the production permit shall indicate the production permit number and mark on the product or its package.
     Article 13 Maintenance of Quality System and Product Quality
     The enterprise that produces the product under production permit administration shall maintain the required quality system and product quality.
     SMTSB shall conduct regular supervision and inspection on the quality system and the quality of the product under production permit administration.
     Article 14 Validity of Production Permit
     The validity of the production permit shall be 3 years or 5 years.
     Within 90 days prior to the expiry of the production permit, SMTSB shall issue a new production permit to replace the old one when the enterprise passes quality system evaluation and examination and product quality inspection according to the rules for check-up.
     Article 15 Trial Production System
     This Municipality shall practice a trial production system on the enterprises that apply, after the implementation of the production permit system, for the implementation of production permit administration in their production. SMTSB shall provide separately on the time limit of the trial production and procedures on its administration.
     SMTSB shall verify and issue production permit to the qualified enterprise on trial production pursuant to Articles 7, 8, 9, and 10 of these Procedures.
     Article 16 Forbidden Behavior
     No unit or individual person shall be allowed to transfer, forge, fraudulently use or alter the production permit.
     Article 17 Cancellation of Production Permit
     When the enterprise that produces products under the production permit administration permit administration terminates its production according to law, it shall attend to the formalities of cancellation of production permit with SMTSB.
     Article 18 Requirements on the Seller
     The seller who sells products under production permit administration shall practice the inspection and check and acceptance system on incoming goods, and check the production permit and certificate of product quality.
     Products that are under the production permit administration but without production permit shall not be sold except the product on trial production pursuant to Section 1 of Article 15 of these Procedures.
     Article 19 Products From Other Parts of the Country to be Sold in Shanghai
     When the product, produced by an out-of-town enterprise, that belongs to the products under production permit administration of this Municipality, is to be sold in Shanghai, its producer or seller shall, at the time when the product is for the first time placed on the Shanghai market, submit to SMSTB, for the record, a product quality inspection report issued by a product inspection organ, that has passed the examination and verification of a quality inspection administrative department at the provincial level. In the case of a product without product quality inspection report, the producer or the seller shall entrust a product inspection organ that has passed the examination and verification of SMSTB to inspect the quality of the product, and submit the quality inspection report to SMSTB for the record.
     Selling the product under the administration of production permit in this Municipality produced by an out-of town enterprise but without report to SMTSB for the record, shall be regarded as selling product without production permit.
     Article 20 Administrative Penalty and Calculation of Product Value and Sales Income
     SMTSB shall, pursuant to Articles 34 and 37 of the Regulations of Shanghai Municipality on Product Quality Supervision, impose penalty on the enterprise that violates the provisions on the permit system.
     When SMTSB imposes an administrative penalty in accordance with the provision of the preceding Section and needs to calculate the cost of product produced without production permit, the cost of the products not yet sold by the producing enterprise shall be calculated at the actual cost of the products, the cost of the products already sold shall be calculated at the ex-works price, and the value of sales income of the product without production permit shall be calculated at purchase price if the product is not sold and at selling price if sold.
     Article 21 Rate Standards
     For the initial application for production permit, the applicant enterprise shall hand in application fee and product inspection fee. The application fee will be verified by the municipal price control department, and the product inspection fee will be set according to the State' s standard.
     Article 22 Relation with Production License
     The product under production permit administration that is included by the State into the scope of administration of production license shall not be listed in the scope of production permit administration.
     Article 23 Department Responsible for Interpretation in Application
     SMTSB shall be responsible for the interpretation of these Procedures in their specific application.
     Article 24 Date of Implementation and Repealer
     These Procedures shall become effective on January 1, 1999, and the Procedures for Trial Implementation of Shanghai Municipality on Industrial Production Permit promulgated by the Shanghai Municipal People' s Government on July 14, 1992 shall be repealed at the same time.
    


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