New law taking effect in June 2016

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A number of new Laws and Regulations are set to take next month, many of which may have an impact on the lives and business of ordinary persons in China. The following is very cursory summary of some of the major ones

Largely Adapted from: http://www.legaldaily.com.cn/index_article/content/2016-05/31/content_6653695.htm?node=5955

Education Law + Higher Education Law

Links: http://www.npc.gov.cn/npc/xinwen/2015-12/28/content_1957553.htm

http://www.gov.cn/zhengce/2015-12/28/content_5029896.htm

These two laws, passed in 1995 and 1998 respectively were revised in December 2015, with revisions to take effect June 1.

Among the revisions are heightened provisions against cheating on State tests, such as using crib sheets, plagiarizing or taking tests on behalf of others. The law allows for scores to be cancelled, and even for disqualification from future exams for a period of 1-3 years. These changes are in line with revisions to the Criminal Law late last year that also took a harsher stance on cheating on official examinations, focusing mainly on those organizing cheating, but also targeting the use of ‘hired guns’ to take tests on one’s behalf.

The degree of punishments against schools for conduct such as improper recruitment and enrollment has also been increased, with fines of up to 5x the unlawful gains being imposed, possible removal of permits, and even criminal penalties.

The higher education law calls for the establishment of a school assessment system. Experts organized by administrative departments of education will create a publicly available report on the quality of schools.

New Limits on items brought from abroad.

Link: http://www.customs.gov.cn/publish/portal0/tab49564/info789113.htm

New rules put out by customs and other departments will take effect this month, limiting what travelers may take across the borders. This includes broad restrictions on carrying many products in volumes that exceed those for “reasonable personal use”, in an attempt to better regulate domestic markets.

Link: http://www.customs.gov.cn/publish/portal0/tab515/info797996.htm

For imports of gold, customs agencies at several pilot sites in Beijing, Shanghai, Guangzhou, Qingdao, and Shenzhen will have more relaxed rules in place. The primary change is that pilot locations will not require a separate permit for each important of gold or gold products, but will allow use of a single permit over a 6 month period, provided the total quantity limits do not exceed those for 12 imports.

Establishment of the Investor Protection Fund Company, LLC

Link: http://www.jiaokedu.com/fagui/difangfagui/377076.html

The China Securities Regulatory Commission’s newly revised “Administrative Measures on Investor Protection Funds” will take effect on the first of this month, with new rules clarifying the nature and duties of investor protection funds.

The measures call for the establishment of a State owned limited liability company known as the China Securities Investor Protection Fund to provide long-term effective precautions against risk. It will be responsible for the overall management and operation of funds, monitoring risk of securities companies, participating in risk management work, making payments when compulsory measures are taken against securities brokerages, participating in the liquidation of closed brokerages, and working to protect the rights and interests of brokers.

Copyright Registration

Link: http://www.ncac.gov.cn/chinacopyright/contents/483/276158.html

To better protect copyright, new efforts to unify the national copyright registration scheme will also take effect. Authors registering works will now receive a uniform registration certificate with a standardized seal, facilitating proof of claims to copyright ownership.

Children’s clothing standards

Link: http://bit.ly/1U9cgqN

China’s first ever mandatory safety guidelines specifically targeting children’s clothing will take effect, imposing age based standards for children aged 0-14.

Deliveries (Kuaidi)

Link: http://nm.spb.gov.cn/zcfg/bz/201603/P020160316423720503391.pdf

Part of an ongoing and increasing effort to better regulate China’s ubiquitous Kuaidi electric bike and trike delivery services, the national postal service has been tasked with developing safety and operations standards that take effect this week. Regulations require heightened obligations to verify parcel information and ensure its legality.

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