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**Order No. 41 of the State Administration for Market Regulation: The Provisions on the Administrative Law Enforcement Responsibility System for Market Regulation were approved at the 5th Bureau Meeting of the State Administration for Market Regulation on March 25, 2021; they are hereby promulgated and shall come into force as of July 15, 2021. Director: Engineer Zhang, May 26, 2021. Provisions on the Administrative Law Enforcement Responsibility System for Market Regulation (issued by the State Administration for Market Regulation under Order No. 41 dated May 26, 2021). Article 1: These provisions are formulated in order to implement the administrative law enforcement responsibility system, supervise and ensure that staff members of market regulation departments carry out their duties in accordance with the law, and encourage new efforts and actions in the new era; they are based on the actual requirements of market regulation work. Article 2 These Provisions shall apply to the implementation of the administrative law enforcement responsibility system by the market supervision and administration departments. Article 3: In implementing the administrative law enforcement responsibility system, it is necessary to uphold the leadership of the Party and adhere to the principles of statutory authority, consistency between rights and responsibilities, proportionality between actions and penalties, equal emphasis on restraint and incentives, as well as a combination of punishment and education. It is essential to hold those who fail in their duties accountable and exempt those who fulfill their obligations. Article 4: The market supervision and administration department shall strengthen leadership, organize, coordinate, and promote the implementation of the administrative law enforcement responsibility system, with its various affiliated agencies carrying out relevant work within their respective areas of responsibility. The higher-level market supervision and administration departments guide and supervise the lower-level ones in implementing the administrative law enforcement responsibility system in accordance with the law. Article 5 The market supervision and administration department shall, in accordance with the arrangements of the people’s ** at its corresponding level, sort out the bases for administrative law enforcement, prepare lists of powers and responsibilities, make them public to the general public in an appropriate form, and adjust them in a timely manner in light of any revisions to laws, regulations, and rules. Article 6 The market supervision and administration department shall, based on the list of powers and responsibilities, allocate the administrative law enforcement duties it is mandated to carry out in accordance with the law to the respective law enforcement agencies and positions. Clarify and assign the law enforcement responsibilities of the respective law enforcement agencies and positions; it is not permitted to arbitrarily increase or reduce the unit’s administrative law enforcement powers. Article 7: The market supervision and administration department shall, in accordance with the list of powers and responsibilities, formulate guidelines and flowcharts for handling matters that have a direct impact on the rights and obligations of administrative counterparts, based on different types of powers, and make such materials available to the public in an appropriate form. Article 8: Staff members of the market supervision and administration department shall exercise their powers within the scope of their statutory authority and in accordance with legal procedures, ensuring strict, standardized, fair, and civilized law enforcement; they must not neglect their duties, exceed their authority, or abuse it. Article 9 If a staff member of the market supervision and administration department, through intent or gross negligence, performs his or her administrative law enforcement duties in violation of the law, thereby causing harmful consequences or negative impacts, such conduct constitutes an error in administrative law enforcement, and the relevant person shall bear administrative law enforcement responsibilities in accordance with the law. Where laws and regulations provide separate provisions regarding the constitutive elements of specific administrative law enforcement errors, such provisions shall apply. Article 10 In any of the following circumstances, the administrative law enforcement responsibilities of the relevant staff members shall be pursued in accordance with the law: (1) Making a decision to grant an administrative license beyond the statutory authority ； (II) Failing to accept an application for an administrative license that meets the legal requirements when the circumstances are serious, or failing to make a decision to grant or deny such a license in accordance with the legal requirements ； (III) Imposing administrative penalties or administrative coercion without legal basis, or imposing administrative coercion in a disguised form ； (IV) Failing to initiate cases that meet the criteria for administrative penalty proceedings in a timely manner, or where the officers carrying out the administrative penalties do not possess the necessary administrative law enforcement credentials ； (5) Arbitrarily changing the type or severity of administrative penalties, or altering the subject, conditions, or methods of administrative coercion ； (6) Granting administrative licenses in violation of relevant legal procedures and with serious consequences, or imposing administrative penalties or administrative coercion in violation of legal procedures ； (7) Illegally expanding the scope of seizure and confiscation ； (8) Using or damaging seized or confiscated premises, facilities, or property ； (IX) Failing to make a decision regarding handling within the statutory period for seizure or detention, or failing to lift such seizure or detention in a timely manner in accordance with the law ； (10) Hiding, embezzling, or indirectly embezzling fines, illegally obtained proceeds or property confiscated, property sealed up or seized, as well as the funds obtained from auctions and lawful disposals thereof ； (11) Illegally imposing inspection measures or enforcement actions, thereby causing harm to the person or property of citizens, or resulting in losses for legal persons or other organizations ； (12) Failing to transfer cases that should be handed over to judicial authorities for criminal prosecution in accordance with the law, and substituting administrative penalties for criminal penalties ； (13) Failing to handle reports falling within the scope of the market supervision and administration authorities in accordance with the law, resulting in serious consequences ； (14) Failing to prevent or punish illegal acts that should be so addressed, thereby causing damage to the legitimate rights and interests of citizens, legal persons, or other organizations, as well as to the public interest and social order ； (15) Failing to implement a administrative reconsideration decision or delaying its implementation without proper justification ； (16) Failing to fulfill supervision duties in accordance with the law regarding the activities of the licensee in carrying out administrative licensing matters, or failing to exercise effective supervision, thereby causing serious consequences ； (17) Revealing **secrets or work secrets, or disclosing trade secrets or personal privacy acquired in the course of performing duties, thereby causing adverse consequences or impacts ； (18) Other circumstances stipulated by laws, regulations, and rules for which administrative law enforcement responsibilities should be pursued. Article 11 The following circumstances do not constitute errors in administrative law enforcement, and the relevant staff shall not be held accountable for such errors: (1) Deviations in administrative law enforcement actions occur due to unclear bases for such enforcement or differences in understanding of the relevant facts and bases, except in cases of intentional violation of the law ； (II) An erroneous judgment was made due to the administrative counterpart concealing relevant information or providing false materials, and the review duties were fulfilled in accordance with regulations ； (III) Making administrative law enforcement decisions based on inspection, testing, appraisal reports, or expert review opinions, etc., and having fulfilled the review duties as required ； (IV) Where the administrative counterpart fails to apply for administrative approval or registration in accordance with the law, and before the adverse effects caused by its illegal acts are detected, the market supervision and administration department has not received any reports or was unable to discover such issues due to objective reasons, provided that it has failed to fulfill its duties regarding supervision and inspection as required ； (5) Where new evidence emerges, resulting in a change in the previously established facts or the nature of the case, except where evidence is intentionally concealed or omitted due to gross negligence ； (6) The supervisory and inspection duties have been duly fulfilled in accordance with annual supervision and inspection plans, as well as supervision mechanisms such as \"random selection, random inspection, and public disclosure\"; or although no supervision or inspection has yet been carried out, the statutory or prescribed time limit has not been exceeded, and the administrative counterpart has committed an illegal act ； (7) Due to limitations imposed by objective factors such as science and technology or regulatory measures, it was not possible to identify any problems or to determine their nature ； (8) In the event of an accident or other emergency that is not directly caused by the failure or improper performance of the statutory duties by the market supervision and administration department ； (IX) Where illegal acts or potential accident hazards that have been identified have been investigated and dealt with in accordance with the law, orders have been issued for correction, or administrative coercive measures have been taken; yet harmful consequences or negative impacts arise as a result of the administrative counterpart’s refusal to make corrections, evasion of inspections, unauthorized illegal production or operation, or unlawful use of seized or confiscated equipment and facilities ； (10) Expressing clear opposition or reservations to incorrect decisions in collective decision-making ； (11) If it is discovered that a decision, order, or document issued by a superior is incorrect, and suggestions have been made to the superior to correct or revoke it, but the superior refuses to make any changes or insists on its continued implementation, except in cases where implementing such a decision, order, or document is clearly illegal ； (12) Failure to perform duties in accordance with the law due to force majeure or other insurmountable factors ； (13) Other circumstances under which administrative law enforcement liability shall not be pursued in accordance with the law. Article 12: In the process of promoting reform and innovation in administrative law enforcement, mistakes resulting from a lack of experience or from trial-based approaches, as well as errors made in exploratory experiments for which no clear restrictions exist, and unintentional oversights aimed at fostering development, shall exempt the relevant parties from administrative law enforcement accountability or result in no such accountability being imposed. However, it should be corrected in accordance with the law. Article 13 The market supervision and administration department shall investigate and handle any clues indicating mistakes in administrative law enforcement in accordance with the procedures stipulated in regulations such as the Regulations on Disciplinary Actions for Civil Servants in Administrative Agencies. Article 14: The imposition of administrative law enforcement responsibilities shall be based on the provisions of laws, regulations, and rules. Factors such as the nature, circumstances, and degree of harm associated with the wrongful acts in administrative law enforcement, as well as the subjective fault of the officials involved, shall be taken into comprehensive consideration. It is necessary to ensure that the facts are clear, the evidence is solid, the classification of the offenses is accurate, the handling is appropriate, the procedures are lawful, and all necessary formalities are met. Article 15 The market supervision and administration department may, in accordance with relevant regulations, discipline, and laws, take organizational actions or impose sanctions on staff members who have committed errors in administrative law enforcement. If the mistakes committed in administrative law enforcement are minor and there are statutory circumstances permitting a lighter or reduced punishment, the relevant staff members may be given verbal warnings, criticized and educated, ordered to conduct self-inspections, or issued admonitions. They may also be transferred from their administrative law enforcement positions or have their qualifications as such revoked, with no punishment imposed or a lighter punishment given. The circumstances for mitigating, reducing, or imposing stricter accountability for administrative law enforcement shall be handled in accordance with the provisions of relevant laws, regulations, and rules. Article 16: If the market supervision and administration department discovers that relevant staff members are suspected of violating Party discipline or of committing duty-related violations or crimes, it shall promptly transfer the case to the disciplinary inspection and supervision authorities for handling in accordance with relevant regulations. For the same administrative law enforcement error, if the supervisory authority has already imposed a disciplinary sanction, the market supervision and administration department shall not impose another sanction. Article 17: When authorities and units with relevant powers, such as those in charge of discipline inspection and supervision, initiate an investigation, the market supervision and administration department may, as required, organize qualified professionals to conduct assessments regarding whether the relevant staff have fulfilled their duties in accordance with the law and whether there have been any errors in their administrative enforcement actions, and issue written assessment opinions to serve as a reference for these authorities and units in determining responsibilities. Article 18: The staff of market supervision and administration departments who perform their duties in accordance with the law are protected by law; they shall not be subject to any sanctions unless there are legal grounds for such action and following legal procedures. Article 19: When performing their duties in accordance with the law, staff members of the market supervision and administration department have the right to reject any requests from entities or individuals that violate statutory duties, statutory procedures, or undermine the fairness of law enforcement. Article 20 The market supervision and administration department shall provide its staff with the necessary office space, law enforcement equipment, logistical support, and other resources to enable them to perform their duties in accordance with the law, and shall take measures to safeguard their physical health and safety. Article 21: If staff members of the market supervision and administration department suffer false reports, false accusations, as well as slander and humiliation due to their lawful performance of duties, the department shall promptly clarify the facts in an appropriate manner, eliminate any negative impacts, and safeguard their legitimate rights and interests. Article 22 The market supervision and administration department shall establish and improve an incentive mechanism for administrative law enforcement, and commend and reward those staff members who have achieved outstanding results in such work. Article 23: Administrative law enforcement as referred to in these provisions denotes the actions taken by market supervision and administration departments in exercising their administrative powers in accordance with the law, including administrative acts such as administrative licensing, administrative penalties, administrative coercion, administrative inspections, and administrative confirmations. Article 24 These Provisions shall apply to the implementation of the administrative law enforcement responsibility system by drug supervision and administration departments and intellectual property administration departments. These provisions shall apply to organizations authorized by laws and regulations to perform market supervision and management functions, which implement an administrative law enforcement responsibility system. Article 25 These provisions shall come into effect on July 15, 2021.