Hainan Free Trade Port Social Credit Regulations

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Hainan Free Trade Port Social Credit Regulations

(Adopted at the 30th meeting of the Standing Committee of the Sixth Hainan Provincial People's Congress on September 29, 2021)

Table of Contents

Chapter I: General Provisions

Chapter II: Management of Social Credit Information

Chapter III: Incentives for Trustworthiness and Punishments for Untrustworthiness

Chapter IV: Protection of Credit Subjects' Rights and Interests

Chapter V: Legal Responsibility

Chapter VI: Supplementary Provisions

Chapter I: General Provisions

Article 1: These Regulations are drafted based on relevant laws and administrative regulations and in consideration of actual conditions in the Hainan Free Trade Port, so as to regulate the management of Social Credit Information, preserve the lawful rights and interests of credit subjects, accelerate the establishment of the social credit system, optimize the business environment, and promote the high-quality development of the Hainan Free Trade Port.

Article 2: “Social Credit” as used in these Regulations refers to the status of natural persons', legal persons' and organizations other than legal persons' (' Credit Subjects') conduct in the performance of legally-prescribed and contractual obligations in social and economic activities.

"Social Credit Information" refers to objective data and materials that may be used to identify, analyze, and judge credit subjects’ compliance with legal obligations and performance of contractual obligations. Social Credit Information is to be divided into Public Credit Information and Market Credit Information.

"Public Credit Information" refers to Social Credit Information produced or acquired in the course of lawful performance of legally-prescribed duties or provision of public services by state organs or organizations authorized by laws and regulations to have public affairs management duties.

"Market Credit Information" refers to Social Credit Information produced or acquired during production, business, and social service activities by industry associations, chambers of commerce, credit service establishments, and other enterprises and public institutions.

Article 3: Activities such as the collection, aggregation, disclosure, sharing, querying, and application of Social Credit Information shall be conducted in accordance with law and must not endanger national security, public safety, or the public interest, and must not disclose state secrets, commercial secrets, and personal privacy, ensuring information security.

Article 4: People's government at the county level or above shall place the establishment of a social credit system within the Citizens' economic and social development plan, establish and complete mechanisms for coordination, systems of responsibility for meeting targets, and evaluation systems for the establishment of a social credit system, and do the overall work of promoting the establishment of a social credit system within that administrative region.

The departments in charge of social security for people's governments at the county level or above are responsible for efforts on the management of social credit such as comprehensive coordination, drafting of plans and policies, oversight, and management; and orchestrating the establishment, operation, and management of the credit information sharing platform for that level.

The relevant departments of people's governments at the county level or above, such as for natural resources and planning, tourism and culture, the environment, commerce, education, health, public security, housing and urban construction, transport, and market regulation, as well as supervision commissions, people's courts, people's procuratorates, and so forth, shall complete relevant social credit work in accordance with their duties and division of labor.

Article 5: State organs and organizations authorized by laws or regulations to have public affairs management functions shall strengthen the application of credit, establish and complete credit-based regulatory mechanisms, and conduct hierarchical and categorical regulation of regulatory subjects.

Article 6: The establishment of the social credit system shall emphasize giving play to the functions of industry associations and chambers of commerce as well as other social organizations, encouraging and guiding social forces' participation in credit management, services, and oversight.

Article 7: Encourage the development of the credit services industry, supporting credit service establishments in providing the public with credit products and services through means such as credit reporting, credit consultation, credit rating, credit insurance, and credit guarantees.

Credit subjects are encouraged to make inquiries and use Social Credit Information reports during activities such means such as market transactions, enterprise management, industry self-discipline, financial services, and public interest activities.

Credit service establishments are encouraged to use big data, cloud computing, blockchain, artificial intelligence, and other modern technology to launch credit products in which they have intellectual property rights, and expand the application of the credit services field.

Credit rating establishments are encouraged to connect with the international credit rating market, and actively participate in international competition and the drafting of international standards, enhancing the international influence of credit rating establishments.

Article 8: The Hainan Free Trade Port is to establish and complete social credit systems, strengthening the establishment of creditworthiness in areas such as government affairs, commercial affairs, and society, and judicial credibility.

Article 9: People's governments at the county level or above shall strengthen the establishment of a culture of creditworthiness, carrying out education on credit knowledge, and increasing the public's awareness of legal compliance and creditworthiness.

Credit service establishments and other enterprises and public institutions shall strengthen the management of their own credit, leading the units to enhance awareness of creditworthy business.

Media such as television, radio, periodicals, and the internet shall carry out publicity and education on the development of a culture of creditworthiness, creating a creditworthy and harmonious social atmosphere.

The public shall be trustworthy and self-disciplined, enhance awareness of creditworthiness and actively participate in c education and credit supervision activities.

Article 10: People's governments at the county level or above and relevant departments may carry out cross-regional cooperation on the establishment of the social credit system, advancing the sharing of Social Credit Information, mutual recognition of credit products, and cooperation on incentives for trustworthiness and punishments for untrustworthiness.

Chapter II: Management of Social Credit Information

Article 11: A cataloged management system is to be implemented for Public Credit Information. The Hainan Free Trade Port is to implement the National Basic Catalog of Public Credit Information.

In conjunction with relevant departments, the provincial people's government's department in charge of social credit is to compile a Public Credit Information catalog for the Hainan Free Trade Port and implement it after approval by the provincial people's government.

The Hainan Free Trade Zone's Public Credit Information catalog shall be openly published and updated when appropriate.

Article 12: In the course of handling registrations, qualification reviews, routine regulation, and public services, state organs and organizations authorized by laws or regulations to have public affairs management duties shall record and store Public Credit Information in accordance with the requirements of the Public Credit Information catalog and relevant standards and specifications, and shall promptly, accurately, and completely aggregate it on the Credit Information sharing platform.

Article 13: People's governments at the county level or above and relevant departments shall establish and complete a credit pledge system.

Market entities are encouraged to proactively make credit pledges to the public, and voluntarily display credit information such as their registrations, business operations, contract performances, and societal public interest activities through government portal websites or other channels, and make public credit pledges as to the veracity of the information. Truthful, lawful, and complete credit pledge information may be an important basis for handling administrative permits, conducting ongoing and ex-post regulation, carrying out credit assessments, producing credit reports, and so forth.

Article 14: Industry associations, chambers of commerce, credit service establishments, and other enterprises and public institutions may lawfully collect the Market Credit Information of related credit subjects in "Market Credit Information" refers to Social Credit Information during production, business, and social service activities.

Where collecting Market Credit Information that involves natural persons' personal information, it shall be with the consent of the credit subject and the credit subject shall be notified of the content collected, the method of collection, the use of the information, and of the rights and interests enjoyed by the credit subject and the obligations they shall bear. Except for information that shall be disclosed in accordance with laws and administrative regulations.

In the collection of Market Credit Information, natural persons' income, savings, commercial insurance, real estate information, and tax amount information must not be collected. Except, however, where notice of the possible adverse consequences of providing this information is given and the credit subject's written consent has been obtained and the usage has been agreed upon.

In the collection of Market Credit Information, it is prohibited to collect information on natural persons' religious beliefs, blood type, illness, medical, or history, physiological information such as genetics and fingerprints, or any other information that laws or administrative regulations prevent the collection of.

Support industry associations and chambers of commerce to establish and complete systems for internal industry credit pledges, and to encourage members to provide their own Social Credit Information in forms such as voluntary declarations and pledges.

Article 15: People's governments at the county level or above shall establish and complete systems for sharing Social Credit Information, promoting the integration of Public Credit Information and Market Credit Information. The provincial department in charge of social credit, justice organs, units carrying out vertical management, and so forth, shall strengthen communication and cooperation, advancing cooperation in the development of credit information systems such as the Hainan Free Trade Port credit information sharing platform and the Basic Financial Credit Information Databases.

The Basic Financial Credit Information Databases and credit information systems of units implementing vertical management may carry out information sharing and data exchanges with the credit information sharing platform.

Article 16: Public Credit Information is to be released through means such as public announcements, authorized inquiries, and public affairs sharing.

Public Credit Information that shall be disclosed in accordance with law, shall be disclosed and announced to the public on the Public Credit Information platform. Public Credit Information that cannot be made public in accordance with law, may be inquired into upon the credit subjects' verification of their real identity or written authorization, and used for the agreed-upon uses.

Article 17: People's governments at the county level or above and relevant departments shall draft and publish service regulations, reasonably setting up desks for Social Credit Information inquiries and providing convenient inquiry services to the public through means such as the internet.

Chapter III: Incentives for Trustworthiness and Punishments for Untrustworthiness

Article 18: The Hainan Free Trade Port is to establish a system of rewards for trustworthiness and punishments for untrustworthiness for this province, strengthening advocacy and praise for trustworthy conduct and lawfully conducting punishment and restraint of untrustworthy conduct.

People's governments at the county level or above and relevant departments shall organize the implementation of incentives for trustworthiness and punishments for untrustworthiness.

Article 19: People's governments at the county level or above and relevant departments shall establish mechanisms for incentives for trustworthiness, and may implement the following reward measures for credit subjects with positive credit within the scope of their authority:

(1) Giving facilitated services such as priority handling or simplified procedures in implementing administrative management and public services;

(2) Giving credit points and credit level promotions in exchanges of public resources;

(3) Reducing the ration of spot inspections and the frequency of inspections in routine regulation, and use off-site inspection methods more often;

(4) Where other requirements are equal, make them priority choices or giving them key supports in the implementation of government benefit policies;

(5) Conducting publicity or promotions on credit portal websites or related media;

(4) Where other requirements are equal, make them priority choices or giving them key supports in the implementation of government benefit policies;

Article 20: The Hainan Free Trade Port is to determine the scope of fields for lists of seriously untrustworthy entities in accordance with laws, regulations, and relevant provisions, and in consideration of development needs. Where the state has set provisions on the range of fields for lists of seriously untrustworthy entities, enforce the state provisions.

Article 21: Designation standards for lists of seriously untrustworthy entities are to be enforced in accordance with the standards set in laws, administrative regulations, or relevant state provisions. The list systems for seriously untrustworthy entities provided for in local regulations shall concurrently provide designation standards for the list of seriously untrustworthy entities and punishment measures.

Before making a designation for the list of seriously untrustworthy entities, the relevant departments of people's governments at the county level or above shall notify the credit subject of the reason and basis for the decision and of the rights they enjoy in accordance with law; where the credit subject objects, a review shall be made, and when necessary, a hearing ay be organized. A response on the outcome of the handling shall be made within the designated time period.

When credit subjects are included in the list of seriously untrustworthy entities, a decision document for designation as a seriously untrustworthy entity shall be issued and served, and the decision document is to indicate its reasons and basis, and a warning of disciplinary measures for untrustworthiness, as well as conditions and procedures for removal, remedies, and so forth.

Article 22: The province's local regulations may provide for the following punishments for untrustworthiness:

(1) Don't use facilitation measures such as credit pledges during administrative management and public services;

(2) List them as key subjects for regulation in routine regulation;

(3) Subtract credit points or reduce credit levels in exchanges of public resources;

(4) Restrict participation in government bidding or private-public partnership construction projects, or increase the proportion of the guarantee deposit;

(5) Restrict enjoyment of beneficial government policy supports, and restrict applications for government-funded projects;

(6) Restrict participation in awards and honors, and cancel qualifications to participate in competitions, revoke relevant honors;

(7) Other measures provided by laws and regulations.

The adoption of penalty measures against untrustworthy entities shall be connected to the untrustworthy entity's untrustworthy conduct; correspond to the character, circumstances, and degree of social impact of the untrustworthy conduct; and the punishment measures of an appropriate severity are to be employed against untrustworthiness to ensure that the punishment fits the offense.

Article 23: The Hainan Free Trade Port is to implement the National Basic List of Punishment Measures for Untrustworthiness.

The departments in charge of social credit for people's governments of the province and districted cities shall draft a list of punishment measures for untrustworthiness for the Hainan Free Trade Port on the basis of this province's local regulations in conjunction with relevant departments, and release it publicly after approval from the people's governments at that level.

The Hainan Free Trade Port's list of punishments for untrustworthiness shall be dynamically updated.

Article 24: People's governments at the county level or above's designations of untrustworthy conduct shall be based on the following legally-effective documents:

(1) Effective judicial judgment documents and arbitration documents;

(2) Administrative acts and decision documents such as for administrative punishments, or administrative rulings;

(3) Other documents that laws, regulations, or relevant state provisions provide may be the basis for a finding of untrustworthy conduct.

Article 25: Where legal persons or unincorporated organizations are entered into the list of seriously untrustworthy entities, when the relevant departments or units record the relevant information on untrustworthiness, they shall note the information on the legal representatives, principal responsible persons, actual controllers, and other persons directly responsible for the untrustworthy conduct, and carry out corresponding punishment measures in accordance with relevant provisions.

Chapter IV: Protection of Credit Subjects' Rights and Interests

Article 26: The relevant departments of people's governments at the county level or above and credit information providing units shall establish and complete systems management of Social Credit Information security and emergency responses, shall employ secure confidentiality measures, safeguard the security of the processes of the collection, aggregation, disclosure, sharing, querying and use of Social Credit Information.

Establishments and their personnel that are engaged in Social Credit Information management and services must not illegally provide, disclose, or use credit information, and must not, alter, fabricate, leak, steal, or illegally buy or sell credit information.

Article 27: The period for disclosure of information on untrustworthiness in Public Credit Information is normally not to exceed 5 years. It must not be disclosed again after the period for disclosure is completed. The period of disclosure is calculated from the day on which the determination of untrustworthy conduct was made; but where the state of untrustworthiness is ongoing, the period of disclosure is to be calculated from the date on which the untrustworthy conduct concludes. Where laws and regulations provide otherwise, follow those provisions.

Article 28: Natural persons have the right to obtain their credit reports twice each year from establishments that collect and aggregate their Social Credit Information.

Credit service establishments providing related services to credit subjects must not bundle the provision of those services to the collection of individuals' social credit information, and must not compel or indirectly compel credit subjects to accept it.

Article 29: Where credit information providing units discover that there are errors or omissions in the Social Credit Information they provided, they shall promptly correct it, and promptly send the corrected information to the Credit Information sharing platform.

Article 30: Where credit subjects feel that there are errors, ommissions, or violations of their lawful rights and interests in their Social Credit Information, they may submit a written objection to the department in charge of social credit for people's governments at the county level or above or Social Credit Information providing units. The departments in charge of social credit for people's governments at the county level or above or Social Credit Information providing units shall make a notation of the objection within one working day of receiving the objection materials, and give feedback to the applicant on the outcome of the verification and handling within seven working days. Where the situation is complex, the body handling the objection may apply for an extension, and the person responsible for that body may approve an extension, but the total extended time period for handling the objection must not exceed 15 working days.

Where verification confirms there is an error, it shall be corrected or deleted, and the applicant shall be notified; where a decision to not grant a change is made, the reasons shall be explained.

Article 31: After credit subjects' Public Credit Information is aggregated on the credit information sharing platform, the Public Credit Information is revoked by the unit originally providing it or where the conduct on which their designation as an untrustworthy entity is based is revoked by an effective legal document, the revoking unit shall promptly report the changed information to the department in charge of social credit for the people's government at the county level or above.

The departments in charge of social credit of people's governments at the county level or above shall complete the deletion of the information within 2 working days of receiving the modified information.

Article 32: Where untrustworthy entities correct their untrustworthy conduct and eliminate the negative impact, they may apply for credit restoration to the departments in charge of social credit of people's governments at the county level or above or the unit that made the finding of untrustworthy conduct.

Untrustworthy entities carrying out credit restoration may do so through methods such as making credit pledges, completing credit rectification, accepting special training, and participating in public interest charity.

Where conditions are met for credit restoration, the departments in charge of social credit for people's governments at the county level or above and relevant departments accepting the application shall shall remove them from the list of seriously untrustworthy entities in accordance with provisions, stop disclosure and sharing of the relevant information on untrustworthiness in accordance with law, handle the relevant information on untrustworthiness, and inform the credit subject of the restoration. After restoration is complete, the implementation of punishment measures shall be promptly stopped. Where the state has provisions on credit restoration, enforcement is to follow those provisions.

The departments in charge of social credit for people's governments at the county level or above are to draft specific measures on credit restoration in conjunction with relevant departments and implement them after aproval from that level of people's government.

Article 33: Where credit subjects feel that specific administrative acts in public Credit Information management activities violated their lawful rights and interests, they may apply for administrative reconsideration or initiate administrative litigation in accordance with law.

Chapter V: Legal Responsibility

Article 34: Where state organs or organizations authorized by laws and regulations to have public affairs management functions, and their staffs, carry out any of the following conduct, the relevant departments as provided by laws and regulations, or the discipline inspection and supervision departments, are to order corrections, where the circumstances are serious, sanctions are to be given in accordance with law; and where a crime is constituted, criminal responsibility is to be pursued in accordance with law

(1) Failure to collect, aggregate, disclose, share, query, or use Social Credit Information as provided, or failure to accept and handle credit objections as provided;

(2) Alteration, fabrication, concealment, or improper deletion of Social Credit Information;

(3) Leaking Social Credit Information without authorization to make it public;

(4) leaking Social Credit Information related to state secrets, commercial secrets, and personal privacy;

(5) Obtaining, selling, or providing Social Credit Information to others in violation of state provisions;

(6) Illegally implementing credit incentive or punishment measures;

(7) Violating the credit information security management system and causing information to be lost;

(8) other acts prohibited by laws or regulations.

Article 35: Where industry association, chambers of commerce, credit service establishments, or other enterprises and public institutions, social organizations, and their staffs violate these Regulations through any of the following conduct, the departments in charge of social credit or relevant regulatory department of people's governments at the county level or above are to order that corrections be made in a set period of time, and confiscate unlawful gains; fine units between 50,000 and 500,000 RMB; and fine the directly responsible managers and other directly responsible personnel between 10,000 and 100,000 RMB:

(1) Providing fake credit products;

(2) Collecting Social Credit Information for which collection is prohibited, or illegally collecting natural persons' Social Credit Information without consent;

(3) Failure to perform confidentiality obligations, or exceeding the legally prescribed or agreed upon scope of disclosure or use for Social Credit Information;

(4) Altering, fabricating, stealing, or illegally buying or selling Social Credit Information.

Article 36: Where the lawful rights and interests of credit subjects are harmed during the collection, aggregation disclosure, sharing, querying, and use of Social Credit Information, civil liability shall be borne in accordance with law; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Chapter VI: Supplemental Provisions

Article 37: These Regulations are to take force on January 1, 2022.

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