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I. The targets of joint disciplinary action
The targets of joint disciplinary action are production and business units that have serious untrustworthy conduct in the environmental protection field, as well as their legal representatives, principle responsible persons, and relevant personnel that have direct responsibility. The targets of joint disciplinary action described above are to be periodically reported to the signatory departments of this MOU by the Ministry of Environmental Protection.
II. Punishment Measures
In accordance with relevant laws, regulations, rules, and normative documents, each departments is to employ one or several of the following disciplinary measures against the targets of joint disciplinary action (See attachment for the relevant basis and implementation department):
(1) Restrictions or prohibitions on production and trading units market entry, administrative permits, or financing
1. Restrictions on acquisition of Government Land Provisions.
2. Restrictions on obtaining industrial production permits.
3. Restrict participation as a supplier in government procurement activities.
4. Restrict participation in bidding activities for government financed construction projects.
5. Restrict participation in infrastructure and public utilities concessions.
6. Restrictions on obtaining safety production permits
7. Revoke qualifications as a testing body for those motor vehicle emissions testing bodies that make misrepresentations.
8. Where untrustworthy production and business units apply for management as customs certified enterprise, customs will not clear their certification.
9. Restrict issuance of enterprise and coperate bonds.
10. Restrict registration of non-financial debt financince tools.
11. Lawfully make information on the untrustworthy conduct of production and business units a consideration in reviewing the issuance of stocks and listing in the national small and medium-sized enterprize shares exchange system.
(2) Stop production and business units' enjoyment of benefit policies, or don't approve their applications for beneficial policies.
12. Where coal plants enjoy environmentally friendly electricity pricing, confiscate the discount for periods where sulfur dioxide, nitrous oxide, and smoke emissions exceeded standards, and give a heavier fine.
13. Where a punishment is received for violations of the laws and regulations on environmental protection, they must not enjoy comprehensive resource utilization and labor value added tax refund policies for 36 months from the date on which the punishment decision is handed down, in accordance with the relevant provisions of the Ministry of Finance, and State Administration of Taxation.
14. Where there is unlawful conduct such as exceeding standards for pollutant emissions or exceeding comprehensive volume control indexes for emission of key pollutants, follow the relevant provisions of the Ministry of Finance and State Administration of Taxation to stop implementation of environmental protection project enterprise income tax benefits that are already enjoyed.
15. Stop implementation of relevant government financial supports, or restrict applications for government funding programs.
16. Stop implementation of beneficial policies in areas such as investment, or do not approve applications related to enjoyment of related benefit policies.
(3) Restrict production and business units, as well as relevant responsible people, in work such as business performance evaluations, comprehensive assessments, and selections for awards
17. Where relevant provisions of the central business performance evaluation for responsible persons of enterprises is applied to people responsible for untrustworthy production and business units, their annual comprehensive business performance evaluation score is to be reduced in light of their severity and degree and impact, even so as to reduce their annual business performance and seniority evaluation levels; and correspondingly garnish performance and seniority bonuses of the enterprise responsible persons; where the circumstances are serious, give a disciplinary sanction or conduct an investigation of the enterprises' responsible person.
18. Where relevant provisions of the United Front Work Department of CPC Central Committee and 13 other departments on comprehensive assessment of non-publicly owned economic representatives is applied to people responsible for untrustworthy production and business units, they should not be recommended as delegates to the people's congress or political consultative conferences, and must not be selected for awards and commendations.
19. Untrustworthy production and business units must not receive honorifics such as 'civilized unit' and those they have already received are to be revoked; and the legal representatives and principle responsible persons for untrustworthy production and business units, and directly responsible people must not receive honorifics such as moral models, May 1, Labor awards, and so forth; and those they have already received are to be revoked.
(4) Other punishment measures
20. Promote financial institutions making the untrustworthy status of untrustworthy production and business units a consideration in financial credit.
21. Promote insurance establishments making untrustworthy production and business units' records of untrustworthiness a consideration in setting environmental pollution responsiility insurance rates.
22. Pay key attention to production and business units that have serious untrustworthy conduct during the supervision during and after the event in acquisitions by listed companies or non- public listed companies.
23. Each market and industry supervision department is to make untrustworthy production and business units targets for key supervision, increase the extent of routine supervision, increase the rate and frequency of spot checks.
24. Relevant departments are to announce untrustworthy production and business units information to the public through the China Cultural Market Network, the 'Credit China' website, and the national enterprise credit information disclosure system.
25. Other punishment measures implemented by each department in accordance with law.
各部门按照本备忘录约定内容，依法依规对环境保护领域失信生产经营单位及其有关人员实施联合惩戒。 Concurrently establish mechanisms for periodic reporting on the efficacy of punishments, in which all relevant units are to give feedback to the National Development and Reform Commission and Ministry of Environmental Protection through the national credit information sharing platform on the state of implementation for joint disciplinary action.
IV. Other Matters
Each department 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 guiding all levels of units in corresponding system to carry 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.