Memorandum of Understanding on the Implementation of Joint Disciplinary Actions for Responsible Entities for Untrustworthiness in the Field of Domestic Services

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Memorandum of Understanding on the Implementation of Joint Disciplinary Actions for Responsible Entities for Untrustworthiness in the Field of Domestic Services

The following opinions have been reached on carrying out joint disciplinary action against entities responsible for untrustworthiness in field of domestic services, to thoroughly implement so as to thoroughly study and Implement Xin Jinping's Thought on Socialism with Chinese Characteristics for a New Era, and the spirit of the 19th Party Congress, and to implement the requirements of the "State Council Notice concerning Issuance of the Planning Outline for the Establishment of a Social Credit System (2014-2020)"(GuoFa (2014) No. 21), the "The State Council Guiding Opinions on Establishing and Improving Systems of Joint Incentives for Trustworthiness and Joint Disciplinary Action for Untrustworthiness and Accelerating the Establishment of the Social Credit System" (Guofa (2016) No. 33), the 'State Council General Office's Opinions on Promoting Fair Market Competition and Preserving Normal Market Order' (Guofa (2014) No.20), the 'State Council Opinions on Advancing the Establishment of a Commercial Environment for Modernized and Legalized Domestic Trade' (GuoFa (2015) No. 49), the 'Memorandum of Cooperation on Carrying Out Joint Disciplinary Action Against Seriously Untrustworthy Violating Entities in the Field of Domestic Trade Circulation' (FaGaiCaijin (2017) No. 1943), the "National Development and Reform Commission and People's Bank of China Guiding Opinions on Strengthening and Regulating Efforts on the Management of Lists of Persons Receiving Joint Incentives for Trustworthiness or Joint Punishment for Untrustworthiness" (Fagaicaijingui (2017) No. 1798) and other such documents, and to accelerate the establishment of a social credit system in the domestic services field and establishment of systems for joint disciplinary action, by the National Development and Reform Commission, People's Bank of China, Ministry of Commerce, Organization Department of the CPCC, Publicity Department of the CCCPC, Civilization Office of the CPCC, Supreme People's Court, Ministry of Science and Technology, Ministry of Public Security, Ministry of Finance, Ministry of Human Resources and Social Security, Ministry of Land and Natural Resources, Ministry of Housing and Urban and Rural Development, Ministry of Transport, Ministry of Water Resources, General Customs Administration, State Administration of Taxation, State Administration of Industry and Commerce, State Administration of Radio, Film and Television, China Banking Regulatory Commission, Securities Regulatory Commission, Insurance Regulatory Commission, State Administration of Civil Service, Civil Aviation Administration, All-China Federation of Labor Unions, Communist Youth League Central Committee, All-China Womens Federation, Railway administration Company, and other relevant departments.

I. The targets of joint disciplinary action

Targets of joint disciplinary action (hereinafter 'punishment targets') mainly refers to entities responsible for violations, such as relevant establishments and their staffs designated by the competent departments as having seriously untrustworthy conduct such as violations in the course of business operations in the field of domestic services, of the 'Provisional Measures on the Management of Housekeeping Services' (Order of the Ministry of Commerce 2012 No 11) with 'housekeeping services' in the 'Provisional Measures on the Management of Housekeeping Services' equivalent to 'domestic services', and other relevant laws, regulations, rules, and normative documents; going against the principle of creditworthiness and credit; including:

II. Methods for Carrying out Information Sharing and Joint Punishment

The National Development and Reform Commission is to establish a joint reward and punishment system based on the national credit information sharing platform. Through this system, the Ministry of Commerce is to provide the departments and units that have signed this memorandum with information on untrustworthy responsible entities and dynamically update the statuses in accordance with relevant provisions. All departments are to follow the contents of this memorandum and, in accordance with laws and regulations, implement joint disciplinary action against entities responsible for untrustworthiness in the ​​domestic services field. All departments are to give feedback to the National Development and Reform Commission and Ministry of Commerce through the national credit information sharing platform on the state of implementation for joint punishment and reward systems.

III. Joint Discipline Measures

(I) Disciplinary Measures Taken by Departments in Charge of Commerce

1. When untrustworthy enterprises and individuals create new violations of laws or regulations, they are to be given a heavy sentence in accordance with law.

(Implementing Units: Ministry of Commerce)

2. Untrustworthy enterprises and individuals may not enjoy support policies in the area of ​​domestic services, such as training subsidies, business incubation, and insurance subsidies.

(Implementing Units: Ministry of Commerce)

(2) Cross-departmental joint disciplinary measures

3. Each administrative department is to restrict, suspend, or cancel policy funding supports for the targets of disciplinary action in their field of competency.

(Implementing Units: All levels of people's government, the Ministry of Finance, the National Development and Reform Commission and other relevant departments)

4. Lawfully restricting them from participating as suppliers in government procurement activities for a set period of time.

(Implementing Units: Ministry of Finance)

5. Restricting access to Government Provided Lands

(Implementing Units: Ministry of Land and Natural Resources)

6. Lawfully Limiting and Prohibiting Participation in Infrastructure and Public Utility Concessions

(Implementing Units: National Development and Reform Commission, Ministry of Finance Ministry of Housing and Urban and Rural Development, Ministry of Transport, and the Ministry of Water Resources)

7. Lawfully restricting participation in construction project bidding and tendering, and other relevant public resource trading activities.

(Implementing Units: National Development and Reform Commission and other relevant departments)

8.Restrictions on initiating the establishment or having a stake in financial institutions and small loan companies, financing guarantee companies, venture investment companies, internet financing companies, bank card clearing houses, payment establishments other than banks, and so forth.

(Implementing Units: People's Bank of China, China Banking Regulatory Commission,Insurance Regulatory Commission, Ministry of Finance, and the bodies designated by local governments for oversight of finance guarantee companies)

9. Restricting new science and technology support programs, and, on the basis of relevant provisions, suspending review of their new science and technology program support funding reports, and so forth.

(Implementing Units: Ministry of Science and Technology)

10. Strengthening management of publication of their advertisements by radio stations, television stations, and publishers of periodicals, a/v materials and so forth.

(Implementing Units: State Administration of Radio, Film and Television)

11. Listing as a target for key monitoring in tax administration, increasing oversight and the frequency of inspections.

(Implementing Units: State Administration of Taxation)

12. When applying for credit financing, property insurances, or handling credit card or other financial services, the financial institutions are to make their untrustworthy conduct an important consideration in their review.

(Implementing Units: People's Bank of China, China Banking Regulatory Commission, Insurance Regulatory Commission)

13. Make information on violations and untrustworthiness a consideration in the approval or registration of other companies' credit bonds.

(Implementing Units: Securities Regulatory Commission)

14. Not accepting applications to issue corporate bonds.

(Implementing Units: The National Development and Reform Commission)

15. Making information on the untrustworthiness of the punishment targets a consideration in review of stock issuances and review of public transfers of shares in small and medium-sized enterprises.

(Implementing Units: Securities Regulatory Commission)

16. Making the untrustworthy behavior of the targets of punishment a consideration in oversight and management during and after the fact of a domestic listed company's implementation of an equity incentive plan or making relevant personnel equity incentive recipients.

(Implementing Units: Securities Regulatory Commission)

17. Put relevant entities with records of untrustworthiness under key scrutiny, during and after the event, in acquisitions by listed companies or unlisted public companies.

(Implementing Units: Securities Regulatory Commission)

18. Make the untrustworthy conduct of the targets of punishment a consideration in review of major asset reorganizations of non-listed public companies.

(Implementing Units: Securities Regulatory Commission)

19. Make the untrustworthy conduct of the targets of punishment a consideration in reviews and approvals of private fund sales organizations.

(Implementing Units: Securities Regulatory Commission)

20. Make violations and untrustworthy conduct a consideration in approvals of modifications of shareholders with an interest of 5% or more, and actual controllers, bank card clearance establishments and non-bank payment bodies.

(Implementing Units: People's Bank of China)

21. Make the untrustworthy conduct of targets of punishment a consideration in approvals or recording of modifications to securities companies', fund management companies', or futures companies'establishment, equity rights, and actual controller, or private investment fund management registration, modification of major matter, and other fund recording.

(Implementing Units: Securities Regulatory Commission)

22. When approving the establishment of insurance companies or the modification of shareholders with 5% or more interest, or of actual controllers, and in permitting insurance profession referrals, make information on untrustworthiness an important consideration in approvals.

(Implementing Units: Insurance Regulatory Commission)

23.Make information on violations and untrustworthiness a consideration in the relevant entities serving as directors, supervisors, or senior management at securities companies, fund companies, or futures companies, as well as serving as the responsible person for branch organizations; make information on violations and untrustworthiness a consideration in the relevant entities serving as the directors, supervisors, or senior management of insurance companies, insurance property management companies, professional insurance referral bodies, financial guarantee companies, back card clearance bodies, and non-banking payment establishments; and place relevant entities with violations and untrustworthiness under key scrutiny where they have already become the directors, supervisors, or senior management of listed companies, or non-listed public companies; and place relevant entities with violations and untrustworthiness under key scrutiny where they have already become practitioners at securities, funds, or futures establishments.

(Implementing Units: People's Bank of China, State Administration of Industry and Commerce, Securities Regulatory Commission, Insurance Regulatory Commission, and the bodies designated by local governments for oversight of finance guarantee companies)

24. For those who have violated relevant laws and regulations and been given administrative punishments by the relevant departments, where the relevant departments' applied to the people's courts to compel enforcement, and the people's courts lawfully employed measures to restrict highspending in accordance with relevant provisions, or who are lawfully entered into the Judgment Defaulters List; restrict their passage on airplanes, soft-sleeper trains, G type trains, and first-class or higher seats on other train types, and other high-sending and spending on activities not essential for livelihood or work.

(Implementing Units: Supreme People's Court, Ministry of Transport, Civil Aviation Administration, Railway Corporation and other relevant units)

25.Targets of punishment that are judgment defaulters, and their legally-designated representatives, principle responsible persons, actual controllers, and directly responsible persons influencing the performance of debt obligations, from newly building, expanding or expensively renovating housing, or purchasing cars and other such products not necessary for life or work.

(Implementing Units: Ministry of Housing and Urban and Rural Development, Ministry of Public Security, Ministry of Land and Natural Resources, Ministry of Transport, General Customs Administration, Insurance Regulatory Commission)

26. Restricting punishment targets' recruitment (hiring) as civil servants or public institution staff.

(Implementing Units: Organization Department of the CPCC,Ministry of Human Resources and Social Security, National Civil Servants Bureau)

27. Promptly follow procedures to revoke honorific titles. Cancel punishment targets' participation in reward selections and evaluations; punishment targets must not receive honors such as 'civilized unit', 'moral model', 'model worker', or May 1 Labor Awards'.

(Implementing Units: Publicity Department of the CCCPC, Civilization Office of the CPCC, All-China Federation of Labor Unions, Communist Youth League Central Committee, and the All-China Women's Federation)

28.Announce information on the untrustworthiness of the targets of joint disciplinary action on the websites of relevant departments such as the Ministry of Commerce, the 'Credit China' website, the national enterprise credit information announcement system, the commercial creditworthiness public service platform, and so forth.

(Implementing Units: Ministry of Commerce, the National Development and Reform Commission, General Administration of Industry and Commerce)

IV. Each department for other matters should closely coordinate and actively implement this memorandum, drafting detailed implementation rules and operational processes on how to use, revoke, and manage information on untrustworthiness, and carrying out joint disciplinary action in accordance with law. Specific issues in the implementation of this memorandum related to the coordination and cooperation between departments are to be settled by the departments through consultations. After this memorandum is signed, where any laws, regulations, rules or normative documents that are the basis for any joint punishment measure are revised or adjusted, the revised laws, regulations, or normative documents are controlling.

Attachment: The legal basis and implementing units for joint disciplinary action measures

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