Product Quality Laws and Regulations

Product Quality Laws and Regulations

PRC, Product Quality Law (Revised)

(Promulgated on 8 July 2000 and effective as of 1 September 2000.)

PART ONE: GENERAL PROVISIONS

Article 1: This Law is formulated in order to strengthen the supervision and control of product quality, raise the level of product quality, clarify the liability for product quality, safeguard the lawful rights and interests of consumers and protect the social and economic order.

Article 2: This Law must be complied with when engaging in the production and/or sale of products within the People's Republic of China.

For the purposes of this Law, the term "products" means products that are sold following processing or manufacture.

This Law shall not apply to construction projects. However, this Law shall apply to those construction materials, slabs, fittings and equipment used in construction projects that fall within the scope of products stipulated in the preceding paragraph.

Article 3: Producers and sellers shall establish sound internal product quality management systems, strictly implement job quality specifications and quality responsibilities and the corresponding evaluation methods.

Article 4: Producers and sellers shall bear liability for product quality in accordance with this Law.

Article 5: The forgery or passing off of quality marks such as certification marks is prohibited. Falsification of the place of origin of products, and falsification or passing off of the name and/or address of another's factory is prohibited. Adulteration of products produced or sold, mixing of improper elements with products produced or sold, passing off spurious products as genuine products, and passing off products of poor quality as quality products is prohibited.

Article 6: The State encourages the practice of scientific quality control methods and the adoption of advanced and scientific technologies, and encourages enterprises to cause the quality of their products to achieve and surpass industry, national and international standards.

Work units and individuals of outstanding achievement whose product quality control is advanced and whose product quality is of an internationally advanced level, shall be rewarded.

Article 7: People's governments at every level shall include the raising of product quality in national economic and social development plans, strengthen the overall planning and directing of product quality work, guide and supervise producers and sellers in strengthening product quality management and raising product quality, organize all relevant departments to adopt lawful measures to halt violations hereof in the course of production and sales and ensure the implementation hereof.

Article 8: The State Council's product quality supervision department shall be in charge of the nationwide supervision of product quality. Relevant departments of the State Council shall be responsible for supervision of product quality within the scope of their respective duties.

Local departments at and above county level in charge of supervising product quality shall be in charge of supervising product quality within their administrative divisions. Relevant departments of local people's governments at and above county level shall be responsible for the supervision of product quality within the scope of their respective duties.

If any laws contains other provisions regarding product quality supervision departments, matters shall be handled in accordance with the relevant laws.

Article 9: Working personnel of people's governments at every level and of other State authorities may not abuse their authority, be derelict in their duties, practice graft, cover up or connive at violations hereof that are committed in the course of production or sales in their area or within their chain of organizations, or hinder or interfere in the lawful investigation and handling of violations hereof in the course of production or sales.

If a people's government at any level or other State authority covers up, or connives at, a violation hereof in the course of production or sales, the legal liability of its main person in charge shall be pursued in accordance with the law.

Article 10: Any work unit or individual shall have the right to report violations hereof to the product quality supervision department or other relevant department.

Product quality supervision departments and other relevant departments shall maintain the confidentiality of persons who report such violations and reward them in accordance with the provisions of the people's government of the relevant province, autonomous region or municipality directly under the central government.

Article 11: No work unit or individual may exclude products meeting quality standards that were produced by enterprises from outside its/his area or chain of organizations from entering its/his area or chain of organizations.

PART TWO: SUPERVISION AND CONTROL OF PRODUCT QUALITY

Article 12: Product quality shall be examined and found to be up to standard. Substandard products may not be passed off as products that are up to standard.

Article 13: Industrial products that may be hazardous to health, personal safety or the safety of property must conform to national and industry standards for the safeguarding of health, personal safety and the safety of property. If no national or industry standards have been formulated, the products must conform to the requirements for the safeguarding of health, personal safety and the safety of property.

The production or sale of industrial products that fail to meet the standards and requirements for safeguarding health, personal safety and the safety of property is prohibited. The specific administrative measures therefor shall be formulated by the State Council.

Article 14: The State will put into practice a certification system for enterprise quality systems, on the basis of internationally used quality control standards. Enterprises may apply on a voluntary basis for certification of their quality system to a certification institution recognized by the State Council's product quality supervision department or by a department authorized by the State Council's product quality supervision department. If the system is certified as up to standard, the certification institution shall issue an enterprise quality system certification document.

The State will put into practice a product quality certification system by reference to internationally advanced product standards and technological requirements. Enterprises may apply on a voluntary basis for certification of product quality to a certification institution recognized by the State Council's product quality supervision department or by a department authorized by the State Council's product quality supervision department. If the product is certified as up to standard, the certification institution shall issue a product quality certification document and permit the enterprise to use a product quality certification mark on the product or its packaging.

Article 15: The State will implement a system of supervision and inspection of product quality. The main form of such supervision and inspection will be spot checks, which shall be carried out on products that may be hazardous to health, personal safety or the safety of property, important industrial products that affect the national economy and the people's livelihood, as well as products that consumers and/or relevant organizations report as having quality problems. Spot check samples shall be randomly taken from the market or from the sales stock in the enterprise's finished products warehouse. Supervision and spot checking shall be planned and organized by the State Council's product quality supervision department. Local product quality supervision departments at or above county level may also organize supervision and spot checking within their administrative divisions. If any laws contain other provisions regarding the supervision and inspection of product quality, matters shall be handled in accordance with the relevant laws.

The local authorities may not duplicate spot checks of products that have been subjected to supervision and spot checking by the State; and lower level authorities may not duplicate spot checks of products that have been subjected to supervision and spot checking by higher level authorities.

Products may be subjected to inspection as required for purposes of supervision and spot checking. The quantity of samples taken for inspection may not exceed that reasonably required for the inspection, and the persons whose products are being inspected may not be charged inspection fees. The inspection expenses required for supervision and spot checking shall be listed as expenditure in accordance with State Council regulations.

If the producer or seller disagrees with the results of the spot inspection, he may apply for re-inspection to the product quality supervision department that conducted the supervision and spot check or the product quality supervision department at a higher level within 15 days of the date of receipt of the inspection results. The conclusion on the re-inspection shall be rendered by the product quality supervision department that accepted the application for re-inspection.

Article 16: Producers and sellers may not refuse product quality supervision and inspections conducted in accordance with the law.

Article 17: Where products subject to supervision and spot checking hereunder are found to be substandard, the producer or seller thereof shall be ordered to rectify the matter by the product quality supervision department that conducted the supervision and spot checking. If the producer or seller fails to rectify the matter within the allotted time limit, the product quality supervision department of the people's government at or above the provincial level shall issue an announcement. If during the re-inspection conducted after the announcement the products are still found to be substandard, the producer or seller shall be ordered to suspend business and carry out re-organization within a specified time limit. If during the re-inspection conducted after the expiration of the reorganization period the products are still found to be substandard, the business licence of the producer or seller shall be revoked.

If products subject to supervision and spot checking hereunder are found to have serious quality problems, punishment shall be administered in accordance with the relevant provisions of Part Five hereof.

Article 18: When investigating and handling suspected violations hereof pursuant to evidence or reports of suspected violations that it has obtained, the product quality supervision department at or above the county level may exercise the following functions and powers:

carry out an on-the-spot inspection of the premises where the party concerned is suspected to engage in production or sales activities in violation of this Law;
investigate and learn the details of the suspected engagement in production or sales activities that violate this Law from the legal representative, main persons in charge and other relevant personnel of the party concerned;
review and photocopy the relevant contracts, invoices, account books and other relevant materials of the party concerned; and
seal or impound products for which there is evidence to believe that they do not comply with State or industry standards for the safeguarding of health, personal safety or safety of property or products with other serious quality problems and the raw and auxiliary materials, packaging and production tools directly used in the production or sale of such products.

When investigating and handling suspected violations hereof, the administration authority for industry and commerce at or above the county level may, within the scope of the duties and responsibilities stipulated by the State Council, exercise the functions and powers specified in the preceding paragraph.

Article 19: Product quality inspection institutions must possess the appropriate qualifications and ability to carry out examinations. They may undertake product quality inspections only after they have been assessed to be up to standard by the product quality supervision department of a people's government at or above the provincial level or a department authorized thereby. If any laws or administrative regulations contain other provisions regarding product quality inspection institutions, matters shall be handled in accordance with the relevant laws and administrative regulations.

Article 20: Unofficial intermediary organizations that engage in product quality inspections and certification must be legally established and may not be superior or subordinate offices of, or be otherwise interested in, administrative authorities or other State authorities.

Article 21: Product quality inspection institutions and certification institutions must lawfully issue objective and fair inspection results or certifications in accordance with the relevant standards.

Product quality certification institutions shall, in accordance with State regulations, conduct post-certification follow-up inspections of products for which approval has been granted to use a certification mark. Work units that use a certification mark on products that do not meet certification standards shall be required to rectify the matter. If the case is serious, such work units' qualification to use the certification mark shall be revoked.

Article 22: Consumers shall have the right to make inquiries of product producers and sellers regarding product quality problems. If consumers complain to product quality supervision departments, administrations for industry and commerce or related departments, the departments accepting the complaints shall be responsible for handling the same.

Article 23: Unofficial organizations protecting the rights and interests of consumers may propose that relevant departments take charge of handling product quality problems reported by consumers, and shall support consumers in instituting actions in a people's court over damage caused by product quality.

Article 24: The product quality supervision departments of the State Council and the provinces, autonomous regions and municipalities directly under the central government shall regularly issue announcements on the quality of the products that are subject to their supervision and spot checking.

Article 25: Product quality supervision departments or other State authorities and product quality inspection institutions may not recommend certain producers' products to the public; and they may not participate in the business of dealing in products through such means as supervising the manufacture or sale of products, etc.

PART THREE: PRODUCT QUALITY LIABILITY AND OBLIGATIONS

Section One: Product Quality Liability and Obligations of Producers

Article 26: Producers shall be liable for the quality of their products.

Product quality shall satisfy the following requirements:

no unreasonable danger to personal safety or the safety of property exists; if there are State or industry standards for the safeguarding of health, personal safety or the safety of property, such standards shall be complied with;
the product possesses the properties for use that should be possessed by the product, with the exception, however, of products where flaws in their properties for use are clearly indicated; and
conform to the product standards indicated on the product or its packaging, and conform to the quality indicated by such means as the product description, physical samples, etc.

Article 27: The labelling of products or their packaging must be authentic and conform to the following requirements:

have a product quality inspection certificate;
have the product name and the producing factory's name and address displayed in Chinese;
if the product's characteristics and usage requirements necessitate the display of the product's specifications, grade, and the names and quantities of its major constituents, such information shall be displayed in Chinese; if consumers require prior information of the product's specifications, grade, and the names and quantities of its major constituents, such information shall be displayed on the outer packaging or relevant information shall be provided to consumers beforehand;
products to be used within a certain period of time shall clearly carry their production date, period of safe use or date of expiry in a prominent place; and
products whose improper use is likely to cause the products themselves to be damaged or to endanger personal safety and/or the safety of property shall carry a warning mark or a warning in Chinese.

Unpackaged foodstuff and other unpackaged products that are difficult to label due to the special characteristics of such products are not required to be labelled.

Article 28: The quality of the packaging of hazardous goods that are fragile, flammable, explosive, toxic, corrosive or radioactive, etc., and the quality of the packaging of products that may not be placed upside down during storage and transportation or that have other special requirements, must conform to the corresponding requirements and, in accordance with the relevant State regulations, bear warning marks or warnings written in Chinese to indicate the points for attention in storage and transportation.

Article 29: Producers may not produce products that the State has pronounced obsolete.

Article 30: Producers may not falsify the place of origin of products and may not falsify or pass off the name and/or address of another's factory.

Article 31: Producers may not forge or pass off quality marks such as certification marks.

Article 32: In producing products, producers may not adulterate the same or mix the same with improper elements. They may not pass off spurious products as genuine, or products of poor quality as quality products. They may not pass off substandard products as products that are up to standard.

Section Two: Product Quality Liability and Obligations of Sellers

Article 33: Sellers shall establish and implement an examination and acceptance system for purchased stock and shall examine product quality certificates and other labelling.

Article 34: Sellers shall adopt measures to maintain the quality of products sold.

Article 35: Sellers may not sell products that the State has pronounced obsolete and whose sale it has ordered stopped or products that have expired or whose quality has deteriorated.

Article 36: The labelling of products sold by sellers must conform to the provisions of Article 27 hereof.

Article 37: Sellers may not falsify the place of origin of products and may not falsify or pass off the name and/or address of another's factory.

Article 38: Sellers may not forge or pass off quality marks such as certification marks.

Article 39: In selling products, sellers may not adulterate the same or mix the same with improper elements. They may not pass off spurious products as genuine, or products of poor quality as quality products. They may not pass off substandard products as products that are up to standard.

PART FOUR: DAMAGES

Article 40: In any of the following circumstances, the seller shall be responsible for the repair, replacement or return of the product sold; if the consumer that purchased the product incurs losses as a result, the seller shall compensate for such losses:

the product sold does not possess the properties for use that it should possess, and no prior indication is given of such situation;
the product sold does not conform to the applied product standard as indicated on the product or its packaging; or
the product sold does not conform to the quality indicated by such means as a product description or physical sample.

After the seller has taken responsibility for repair, replacement or return and compensated for losses in accordance with the preceding paragraph, if the producer is liable or if another seller that provided the seller with the product (the "Supplier") is liable, the seller shall have recourse against the producer or the Supplier.

If the seller does not repair, replace or return the product or compensate for the losses in accordance with the first paragraph, the product quality supervision department or the administration authority for industry and commerce shall order rectification of such situation.

If product sales and purchase contracts and product processing contracts between producers, between sellers or between producers and sellers provide otherwise, the parties to such contracts shall handle matters pursuant to such contracts.

Article 41: If a defect in a product causes personal injury or damage to property other than the defective product ("Another's Property"), the producer shall be liable for damages.

The producer shall not be liable for damages if he can prove that:

he has not put the product into circulation;
the defect causing the harm did not yet exist when the product was put into circulation; or
the level of science and technology at the time when the product was put into circulation was not sufficient to detect the existence of the defect.

Article 42: If a product is defective due to the fault of the seller and such defect causes personal injury or damage to Another's Property, the seller shall be liable for damages.

If the seller is unable to identify the producer of a defective product and is also unable to identify the Supplier thereof, the seller shall be liable for damages.

Article 43: If a defect in a product causes personal injury or damage to Another's Property, the victim may claim damages from the producer; alternatively, he may claim damages from the seller. If the producer of the product is liable and damages are paid by the seller of the product, the seller of the product shall have recourse against the producer of the product. If the seller of the product is liable and damages are paid by the producer of the product, the producer of the product shall have recourse against the seller of the product.

Article 44: If a defect in a product causes personal injury to the victim, the injuring party shall compensate for such expenses as medical expenses, nursing costs during the treatment period, loss of income due to absence from work, etc. If the defect causes a permanent disability, the injuring party shall additionally make such payments to the disabled person as his daily-life self-help device costs, cost-of-living allowance, disability compensation, the necessary living expenses of his dependents, etc. If the defect causes the death of the victim, the injuring party shall additionally pay such expenses as the funeral expenses, death compensation and the necessary living expenses of the dependents of the deceased, etc.

If a defect in a product causes damage to the property of the victim, the injuring party shall restore the property to its original state or pay compensation at the market price. If the victim suffers other serious losses as a result thereof, the injuring party shall compensate for such losses.

Article 45: The state of limitations for claims for damages arising from a defect in a product shall be two years, calculated from the date on which the person concerned knew or ought to have known that his rights and interests had been infringed upon.

The right to claim for damages arising from a defect in a product shall be extinguished 10 years after the defective product causing the damage is delivered to the first consumer, unless the clearly indicated period of safe use has not yet expired.

Article 46: For the purposes of this Law, the term "defect" shall mean an unreasonable danger in a product, which danger threatens personal safety or another's property. Where a product is governed by State or industry standards for the safeguarding of health, personal safety or the safety of property, the term "defect" shall mean noncompliance of the product with such standards.

Article 47: Civil disputes arising over product quality may be settled through consultation or mediation between the parties. If the parties are not willing to settle the dispute through consultation or mediation or if consultation or mediation is unsuccessful, the dispute may be submitted to an arbitration institution for arbitration on the basis of an agreement between the parties. If the parties have not reached an arbitration agreement or if the arbitration agreement is invalid, proceedings may be directly instituted in a people's court.

Article 48: An arbitration institution or people's court may entrust a product quality inspection institution as provided for in Article 19 hereof with inspecting the quality of the relevant product.

PART FIVE: PENAL PROVISIONS

Article 49: If anyone produces or sells products that do not comply with the State or industry standards for the safeguarding of health, personal safety or the safety of property, such producer or seller shall be ordered to cease the production or sale thereof, the illegally produced or sold products shall be confiscated and a fine equivalent to not less than the value of the illegally produced or sold products (which term here and hereafter includes the products that have been sold and those that have not been sold) and not more than three times such value shall be imposed. The illegal income, if any, shall be confiscated. If the case is serious, the producer's or seller's business licence shall be revoked. If a criminal offence is constituted, the offender shall be prosecuted according to law.

Article 50: If products are adulterated, improper elements are mixed with products, spurious products are passed off as genuine products, products of poor quality are passed off as quality products or substandard products are passed off as products that are up to standard, the producer or seller shall be ordered to cease the production or sale thereof, the illegally produced or sold products shall be confiscated and a fine of not less than 50% of the value of the products produced or sold and not more than three times such value shall be imposed. The illegal income, if any, shall be confiscated. If the case is serious, the producer's or seller's business licence shall be revoked. If a criminal offence is constituted, the offender shall be prosecuted according to law.

Article 51: If anyone produces products pronounced obsolete by the State, or sells products that have been pronounced obsolete and whose sale has been ordered stopped by the State, such producer or seller shall be ordered to cease the production or sale thereof, the illegally produced or sold products shall be confiscated and a fine equivalent to not more than the value of the illegally produced or sold goods shall be imposed. The illegal income, if any, shall be confiscated. If the case is serious, the producer's or seller's business licence shall be revoked.

Article 52: If anyone sells products that have expired or whose quality has deteriorated, such seller shall be ordered to cease the sale thereof, the illegally sold products shall be confiscated and a fine equivalent to not more than twice the value of the illegally sold products shall be imposed. The illegal income, if any, shall be confiscated. If the case is serious, the seller's business licence shall be revoked. If a criminal offence is constituted, the offender shall be prosecuted according to law.

Article 53: If the place of origin of products is falsified, the name and/or address of another's factory is falsified or passed off, or quality marks such as certification marks are forged or passed off, the producer or seller shall be ordered to rectify the situation, the illegally produced or sold products shall be confiscated and a fine equivalent to not more than the value of the illegally produced or sold goods shall be imposed. The illegal income, if any, shall be confiscated. If the case is serious, the producer's or seller's business licence shall be revoked.

Article 54: If the labelling of a product does not comply with Article 27 hereof, it shall be ordered to be corrected. If the labelling of a packaged product does not comply with Item (4) or (5) of Article 27 hereof and the case is serious, production and sale of such product shall be ordered to be ceased and a fine of not more than 30% of the value of the illegally produced or sold products shall be imposed. The illegal income, if any, shall be confiscated.

Article 55: If a seller sells products whose sale is prohibited under Articles 49 to 53 hereof, and there is sufficient evidence to prove that he was not aware that the sale of such products was prohibited and truthfully discloses the source of his goods, he may be given lenient or reduced punishment.

Article 56: If a work unit refuses to be subjected to legally conducted product quality supervision and inspection, it shall be given a warning and ordered to rectify the matter. If it refuses to rectify the matter, it shall be ordered to suspend business and carry out reorganization. If the case is particularly serious, its business licence shall be revoked.

Article 57: If a product quality inspection institution or certification institution falsifies inspection results or issues a sham certificate, it shall be ordered to rectify the matter, the work unit shall be fined not less than Rmb 50,000 and not more than Rmb 100,000 and the leading personnel directly in charge and the other directly responsible personnel shall be fined not less than Rmb 10,000 and not more than Rmb 50,000. The illegal income, if any, shall be confiscated. If the case is serious, the institution's inspection or certification qualifications shall be revoked. If a criminal offence is constituted, the offender's criminal liability shall be pursued according to law.

If the untruthfulness of the inspection results or certificate issued by a product quality inspection institution or certification institution causes losses, the institution shall be liable for the corresponding damages. If the untruthfulness of the inspection results or certificate causes serious losses, the institution's inspection or certification qualifications shall be revoked.

A product quality certification institution shall be jointly and severally liable with the producer or seller of a product, if such institution violates the second paragraph of Article 21 hereof by failing to lawfully demand rectification of a producer or a seller that uses a certification mark on products that do not meet certification standards or failing to lawfully revoke his qualifications to use the certification mark, and the product's non-compliance with certification standards causes losses to consumers. If the case is serious, the institution's certification qualifications shall be revoked.

Article 58: A social group or unofficial intermediary organization shall be jointly and severally liable with the producer or seller of a product if it gives an undertaking or warranty in respect of the quality of the product and such product does not meet the quality requirements mentioned in its undertaking or warranty and causes consumers to incur losses.

Article 59: If false publicity concerning the quality of a product is made in an advertisement, thereby deceiving and misleading consumers, the legal liability of the offender shall be pursued in accordance with the PRC, Advertising Law .

Article 60: The raw and auxiliary materials, packaging and production tools specially used by the producer in the production of products enumerated in Articles 49 and 51 hereof or in the production of spurious products passed off as genuine products shall be confiscated.

Article 61: If anyone makes facilitating arrangements such as in terms of transportation, custody or storage, etc. for the production or sale of products that he knows or ought to know to be products whose production and/or sale is prohibited hereunder, or if anyone provides technology for the production of spurious products passed off as genuine products, all the revenue from the transportation, custody, storage or provision of technology for the production of spurious products shall be confiscated, and a fine of not less than 50% of the illegal revenue and not more than three times such revenue shall be imposed. If a criminal offence is constituted, the offender's criminal liability shall be pursued according to law.

Article 62: If a service business operator uses in commercial services products whose sale is prohibited under Articles 49 to 52 hereof, he shall be ordered to cease such use. If he knows or ought to know that the sale of the products used is prohibited hereunder, he shall be punished according to the provisions hereof governing the punishment of sellers, based on the value of the products used illegally (including the products that have been used and those that have not yet been used).

Article 63: Anyone that conceals, transfers, sells off, damages or destroys articles that have been sealed or impounded by a product quality supervision department or administrative authority for industry and commerce shall be fined the equivalent of not less than the value of the articles concealed, transferred, sold off, damaged or destroyed and not more than three times such value. The illegal income, if any, shall be confiscated.

Article 64: If the property of anyone that is to assume civil liability for compensation and pay a fine by reason of a violation of this Law is insufficient to pay both, he shall first assume civil liability for compensation.

Article 65: Personnel of a people's government at any level or other personnel of State authorities shall be subjected to disciplinary sanctions and, if a criminal offence is constituted, be prosecuted if:

they cover up or connive at acts in violation of this Law carried out in the course of production or sale;
tip off persons engaged in production or sales activities in violation of this Law and assist them in evading investigation and handling of such violations; or
obstruct or interfere with the lawful investigation and handling by a product quality supervision department or administrative authority for industry and commerce of acts in violation of this Law carried out in the course of production or sale, where such obstruction or interference has serious consequences.

Article 66: If, in the course of performing a spot check for product quality supervision purposes, a product quality supervision department takes samples exceeding the prescribed quantity or charges an inspection fee of the person whose products are being inspected, the product quality supervision department at a higher level or the procuratorial authority shall order it to return the same. If the case is serious, the leading personnel directly in charge and the other directly responsible personnel shall be subjected to disciplinary sanctions according to law.

Article 67: If a product quality supervision department or other State authority violates Article 25 hereof by recommending a certain producer's products to the public or participating in the business of dealing in products through such means as supervising the manufacture or sale of products, etc., the authority at a higher level or the procuratorial authority shall order it to rectify the situation and to eliminate the effects of its violation. The illegal revenue, if any, shall be confiscated. If the case is serious, the leading personnel directly in charge and the other directly responsible personnel shall be subjected to disciplinary sanctions according to law.

If a product quality inspection institution commits a violation as mentioned in the preceding paragraph, the product quality supervision department shall order it to rectify the situation and to eliminate the effects of its violation. The illegal revenue, if any, shall be confiscated. The institution may additionally be subjected to a fine up to the amount of the illegal revenue. If the case is serious, its quality inspection qualifications shall be revoked.

Article 68: If personnel of a product quality supervision department or administrative authority for industry and commerce abuse their authority, are derelict in their duties or practise graft, and the same constitutes a criminal offence, their criminal liability shall be pursued according to law. If no criminal offence is constituted, they shall be subjected to disciplinary sanctions according to law.

Article 69: If anyone, by violence or threat, obstructs personnel of a product quality supervision department or administrative authority for industry and commerce in the performance of their duties according to law, his criminal liability shall be pursued according to law. If anyone refuses or obstructs such performance other than by violence or threat, he shall be punished by the public security authorities in accordance with the Security Administration Punishment Regulations.

Article 70: The administrative punishment of revocation of the business licence hereunder shall be decided upon by the administrative authorities for industry and commerce. The administrative punishments under Articles 49 to 57 and Articles 60 to 63 hereof shall be decided upon by the product quality supervision departments or the administrative authorities for industry and commerce, according to the scope of their duties as specified by the State Council. If other laws or administrative regulations contain other provisions in respect of the authorities that exercise the power to impose administrative punishment, matters shall be handled in accordance with the provisions of the relevant laws or administrative regulations.

Article 71: Products confiscated pursuant to this Law shall be destroyed or otherwise disposed of in accordance with the relevant regulations of the State.

Article 72: For the purposes of Articles 49 to 54 and Articles 62 and 63 hereof, the value of the illegally produced or sold products shall be their marked price. If no price is marked, the value shall be calculated according to the market value of other products of the same kind.

PART SIX: SUPPLEMENTARY PROVISIONS

Article 73: Procedures for supervision and control of the quality of military products shall be formulated separately by the State Council and the Central Military Commission.

If other laws or administrative regulations contain other provisions in respect of compensation for damage caused by nuclear installations or nuclear products, matters shall be handled in accordance with such provisions.

Article 74: This Law shall be implemented as from 1 September 1993.