Market Regulation Measures on the Management of Credit Restoration

Promulgation Date: 2021-7-30
Title: 市场监管总局关于印发《市场监督管理信用修复管理办法》的通知
Document Number:国市监信规〔2021〕3号
Promulgating Entities: State Administration for Market Regulation
Source of text: http://gkml.samr.gov.cn/nsjg/xyjgs/202108/t20210801_333258.html

Article 1: These Measures are drafted on the basis of the General Office of the State Council's Guiding Opinions on Further Improving Systems for Restraining the Untrustworthy and Building Mechanisms for Building Creditworthiness that have Longterm Effect (Guobanfa(2020)No.49), the Market Regulation Measures on the Management of the List of the Untrustworthy with Serious Violations, and the Market Regulation Provisions on the Display of Administrative Punishment Information, so as to regulate market regulation departments' efforts on managing credit restoration, to encourage untrustworthy parties that break the law (hereinafter simply 'parties') to correct their illegal and untrustworthy conduct, eliminate negative impact, and rebuild positive credit, to safeguard parties' lawful rights and interests, and to optimize the commercial business environment.

Article 2: "Credit restoration management" as used in these Measures refers to market regulation departments following the procedures provided to remove eligible parties from the abnormal business directory, restore individual-owned businesses to normal status in accordance with law, remove them from the List of the Untrustworthy with Serious Violations in advance, and stop display of information related to administrative punishments through the National Enterprise Credit Information Publicity System (hereinafter simply 'display system') in advance, and life corresponding management measures in accordance with law and promptly share information on the credit restoration with relevant departments as provided.

Article 3: The State Administration for Market Regulation is responsible for organizing and leading the work of managing credit restoration for the entire country.

Local departments for market regulation at the county level or above are responsible for efforts to manage credit restoration based on these Measures.

Article 4: The market regulation departments that made entry decisions are responsible for managing credit restoration for the directory of abnormal business operations and the List of the Untrustworthy with Serious Violations.

The market regulation departments that added the labels are responsible for managing credit restoration for Individual-operated businesses with abnormal business status.

The market regulation departments that made administrative punishment decisions are responsible for managing credit restoration of administrative punishment information.

Where the market regulation department that made the decision or the label is not within the same province, autonomous region, or directly governed municipality as the site of the parties' registration, they shall exchange relevant information with the market regulation department for the site of registration within 3 working days of making a decision, and that department is to assist in stopping the display of relevant information.

Article 5: Parties that have been entered into the directory of abnormal business operations or labeled as having abnormal business status, may apply for credit restoration in accordance with these Measures where they meet any of the following conditions:

(1) They supplement any missed annual reports and publicly display them;

(2) They have fulfilled instant information display obligations

(3) The have corrected display information that they had concealed the truth of or misrepresented;

(4) They have handled modifications of their domicile or business place registration in accordance with law, or the parties have submitted that they can again be contacted through the registered domicile or business place.

Article 6: Parties meeting the following conditions may apply for credit retoration after completing a 6 month display period for information on administrative punishments other than the administrative punishments provided for in the third paragraph of article 14 of the Market Regulation Provisions on Displaying Administrative Punishment Information, or where only a warning, circulation of criticism, or lower fine is received, and completing a 1 year display period for information on administrative punishments in the food, drug, and special equipment sectors:

(1) They have conscientiously performed obligations provided for in the administrative punishment decision.

(2) They have proactively eliminated harmful consequences and negative impact;

(3) They have not received another administrative punishment from the market regulation departments for the same type of illegal conduct;

(4) They have not been entered into the directory of abnormal business operations or the List of the Untrustworthy with Serious Violations;

Article 7: Where parties have been listed in the List of the Untrustworthy with Serious Violations for a full year and meet the following conditions, they may apply to the market regulation departments for credit restoration:

(1) They have conscientiously performed obligations provided for in the administrative punishment decision.

(2) They have proactively eliminated harmful consequences and negative impact;

(3) They have not received another heavier administrative punishment from the market regulation departments.

Where laws or administrative regulations provide that the period for carrying out corresponding management measures is not complete, they must not apply for early removal.

Article 8: Parties applying for credit restoration shall submit the following materials:

(1) the written application for credit restoration;

(2) Trustworthiness pledges;

(3) Materials related to performing legally-prescribed obligations and correcting illegal conduct;

(4) Other materials requested by the State Administration for Market Regulation.

Parties may submit applications by going to the market regulation departments or through the display system.

The market regulation departments shall make a decision on acceptance within 2 working days of receiving an application. Where the application materials are complete and comply with the format prescribed by law, they shall be accepted and the parties shall be notified. Where they are not accepted, the parties shall be notified and the reasons explained.

Article 9: The market regulatory departments may employ methods such as online verification, written verification, or on-site verification to verify the parties' performance of legally-prescribed obligations and correction of illegal conduct, and other such conduct.

Article 10: Where parties apply for removal from the directory of abnormal business operations or Individual-operated businesses apply to restore normal status in accordance with items (1) and (2) of Article 5 of these Measures, the market regulation departments shall make a decision within 5 working days of receiving the application, and remove them from the directory of abnormal buisiness operations or restore the Individual-operated businesses to normal status.

Where parties apply for removal from the directory of abnormal business operations or Individual-operated businesses apply to restore normal status in accordance with items (3) and (4) of Article 5 of these Measures, the market regulation departments shall make a decision within 5 working days of investigating and confirming, and remove them from the directory of abnormal business operations or restore the Individual-operated businesses to normal status.

Where parties apply for credit restoration in accordance with article 6 or 7 of these Measures, the market regulation departments shall make a decision within 15 days of accepting it. Where stopping the display of information on administrative punishments or removal from the List of the Untrustworthy with Serious Violations is granted, the display of relevant information shall be stopped within three working days of the decision, and the corresponding management measures shall be lifted. Where stopping the display of information on administrative punishments or removal from the List of the Untrustworthy with Serious Violations is not granted, the parties shall be notified and the reasons explained.

Except where laws or administrative regulations provide that the period for carrying out corresponding management measures is not complete.

Article 11: The market regulation departments shall send relevant information to other departments within 3 working days after removals from the directory of abnormal business operations or the List of the Untrustworthy with Serious Violations, or the restoration of Individual-operated businesses to normal status, or stopping the display of information on administrative punishments.

Article 12: In accordance with the principle of having those who make designations restore them, the market regulation departments for the site of registration (domicile) shall cooperate in stopping display or labels of information on untrustworthiness within 5 working days of receiving information on credit restoration from other departments.

Article 13: Where parties intentionally conceals the truth or make misrepresentations and the circumstances are serious, the market regulation departments are to revoke the decision to grant credit restoration or restore prior status. The period for the announcement of administrative punishment information and the List of the Untrustworthy with Serious Violations by the market regulation departments is to be recalculated.

Article 14: The market regulation departments may notify parties in writing, by e-mail, text message, networks, or other such methods.

Article 15: Where laws, regulations, and policy documents of the Party Central Commission or State Council provide that credit may not be restored, the market regulation departments are not to grant credit restoration.

Article 16: Parties may apply for an administrative reconsideration or bring an administrative lawsuit in accordance with law regarding decisions of the market regulation departments on credit restoration.

Article 17: Where the market regulation departments do not perform duties in accordance with these Measures, a higher level market regulation departments shall order corrections. Managers who bear responsibility and other directly responsible personnel are to be handled in accordance with the Market Regulation Provisions on the Administrative Law Enforcement Responsibility Systems.

The collection of any fees during credit restoration is strictly prohibited.

Article 18: These Measures apply to the management of credit restoration by the departments for drug administration and intellectual property rights management.

Article 19: The State Administration for Market Regulation is to uniformly draft form documents related to credit restoration by the market regulation departments.

Article 20: These Measures are to take effect on September 1, 2021.