**Order No. 42 of the State Administration for Market Regulation

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**Order No. 42 of the State Administration for Market Regulation: “Decision of the State Administration for Market Regulation on Amending Two Regulations, including the Interim Provisions on Procedures for Administrative Penalties in Market Regulation”, was adopted at the 10th executive meeting of the State Administration for Market Regulation on June 24, 2021. It is hereby promulgated and shall take effect as of July 15, 2021. Director: Engineer Zhang, July 2, 2021. **Decision of the State Administration for Market Regulation on Amending Two Regulatory Provisions, namely the Interim Provisions on Administrative Penalties in Market Regulation.** In order to implement the newly revised Administrative Penalty Law of the People’s Republic of China, which was announced on January 22, 2021, the State Administration for Market Regulation has decided to amend certain provisions of the Interim Provisions on Administrative Penalties in Market Regulation and the Interim Measures for Hearings on Administrative Penalties in Market Regulation; details are provided in the attachment. The Interim Provisions on Procedures for Administrative Penalties in Market Regulation and the Interim Measures for Hearings Concerning Administrative Penalties in Market Regulation shall be amended accordingly in light of this decision, and the order of their provisions shall be adjusted accordingly; they shall then be republished. This decision shall come into effect on July 15, 2021. Attachments: 1. Amendments to the Interim Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration; 2. Amendments to the Interim Measures for Hearings on Administrative Penalties in Market Supervision and Administration. Attachment 1: Amendments to the Interim Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration. I. Change the title to: “Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration”. II. Amend the provision in Paragraph 1, Article 4, which reads “Relevant personnel involved in handling a case shall recuse themselves if they have a direct interest in the parties involved,” to read “Relevant personnel involved in handling a case shall recuse themselves if they have a direct interest in the case or any other relationship that may affect the impartial administration of justice.” Add a paragraph as the third one: “Prior to the making of a decision on recusal, the investigation of the case shall not be suspended.” ” III. Add a new clause as Article 5: “The market supervision and administration authorities and the personnel involved in handling cases shall keep confidential, in accordance with the law, any **secrets, trade secrets, and personal privacy that come to their knowledge during the process of imposing administrative penalties.” ” IV. Article 6 is renumbered as Article 7, and the phrase “except as otherwise provided by laws and administrative regulations” is amended to “where otherwise provided by laws, administrative regulations, and departmental rules, such provisions shall apply”. V. Article 7 is renumbered as Article 8, and the phrase “except as otherwise provided by laws, regulations, and rules stipulating that such matters shall be under the jurisdiction of market supervision and administration departments at or above the provincial level” is modified to “where laws, regulations, and rules stipulate that such matters shall be under the jurisdiction of market supervision and administration departments at or above the provincial level, such provisions shall apply”. VI. Article 8 is renumbered as Article 9, and its first paragraph is amended to read: “The dispatched agencies of the market supervision and administration department shall impose administrative penalties in the name of the department within the scope of authority determined by the department, except where laws or regulations authorize them to impose such penalties in their own name.” ” Modify the phrase in the second paragraph from “Market supervision and administration departments at or above the county level may, within their statutory authority, delegate the implementation of administrative penalties to organizations that meet the conditions stipulated in the Administrative Penalties Law of the People’s Republic of China” to “Market supervision and administration departments at or above the county level may, within their statutory authority, delegate in writing the implementation of administrative penalties to organizations that meet the conditions stipulated in the Administrative Penalties Law of the People’s Republic of China”. Add a new clause as the third one: “The power of attorney shall specify the specific matters entrusted, the authority granted, the duration, and other relevant details.” The entrusting administrative organs and the entrusted organizations shall make the power of attorney public. ” VII. Article 9 shall be renumbered as Article 10; in this article, the term “e-commerce” shall be revised to “online transactions” at three occurrences. VIII. Article 11 shall be renumbered as Article 12, and the phrase “under the jurisdiction of the market supervision and administration department that first filed the case” therein shall be revised to “under the jurisdiction of the market supervision and administration department that first carried out the case-filing”. 9. Article 12 shall be renumbered as Article 13. The phrase “If no agreement can be reached through consultation, the case shall be submitted to the common superior market regulation authority for designation of jurisdiction” therein shall be revised to “If no agreement can be reached through consultation, the case shall be submitted to the common superior market regulation authority for designation of jurisdiction” ； It is also possible for the common superior market supervision and administration department to directly designate jurisdiction.” X. Article 13 is renumbered as Article 14, and the phrase “where the market supervision and administration department finds that the case under investigation falls outside its jurisdiction” is revised to “where the market supervision and administration department finds that the case for which an investigation has been initiated falls outside its jurisdiction”. 11. Article 14 shall be renumbered as Article 15. The original first paragraph shall be revised into two paragraphs. The first paragraph reads: “Where necessary, the superior market regulatory authority may delegate cases under its jurisdiction to a subordinate market regulatory authority for handling.” Where laws, regulations, and rules explicitly stipulate that a case shall be under the jurisdiction of a higher-level market regulation authority, such authority shall not delegate the case to a lower-level market regulation authority for handling. ” The second paragraph reads: “When it deems necessary, the superior market regulation authority may directly handle cases under the jurisdiction of a subordinate market regulation authority; it may also designate other subordinate market regulation authorities to handle such cases.” ” The original second paragraph was changed to the third paragraph. 12. Article 16 is renumbered as Article 17, and its first paragraph is amended to read: “Where the market supervision and administration department discovers that a case under investigation falls under the jurisdiction of another administrative department, it shall promptly transfer the case to the relevant department in accordance with the law.” ” Modify the second paragraph to read: “When the market supervision and administration department discovers that an illegal act may constitute a crime, it shall promptly transfer the case to the judicial authorities, and handle the handover procedures for the items involved in the case as well as other materials related to the case in accordance with relevant regulations.” ” 13. The title of Chapter 3 is changed to: “The Ordinary Procedure for Administrative Penalties”. 14. Article 17 is renumbered as Article 18, and its second paragraph is amended to read: “The time required for testing, inspection, quarantine, appraisal, as well as for the right holder to identify or authenticate, shall not be included in the time limit specified in the preceding paragraph.” ” Delete paragraph 3. 15. Add a new article as Article 19, divided into two paragraphs. The first paragraph reads: “Upon verification, if the following conditions are met, a case shall be filed: ‘(1) There is preliminary evidence indicating the existence of violations of laws, regulations, and rules governing market supervision and management.’” ； “(II) Administrative penalties should be imposed in accordance with laws, regulations, and rules pertaining to market supervision and administration ； “(III) Falling under the jurisdiction of this department ； “(IV) Within the statutory time limit for imposing administrative penalties. ” The second clause states: “If it is decided to initiate an investigation, an approval form for initiating the case shall be filled out, and the person in charge of the investigating agency shall assign two or more investigators with administrative law enforcement qualifications to handle the investigation.” ” 16. Add a new article as Article 20, divided into two paragraphs. The first paragraph reads: “Upon verification, a case may not be filed if any of the following circumstances exist: (1) The illegal act is minor and corrected promptly, with no harmful consequences resulting therefrom” ； “(II) First-time violation with minor harmful consequences and prompt correction ； “(3) The parties have sufficient evidence to prove that they had no subjective fault, except as otherwise provided by laws or administrative regulations ； “(IV) Other circumstances under which a case may not be filed in accordance with the law. ” The second paragraph reads: “In cases where it is decided not to initiate proceedings, a form for approval of non-filing shall be completed.” ” 17. Articles 18 and 19 are renumbered as Article 21, and Paragraph 3 is deleted. 18. Article 19 shall be renumbered as Article 22. The phrase “and shall show their law enforcement credentials to the parties involved or relevant personnel” therein shall be revised to “and shall proactively show their law enforcement credentials to the parties involved or relevant personnel”. 19. Articles 20 and 21 are renumbered as Article 23, and Paragraph 4 is amended to read: “The aforementioned evidence shall comply with the provisions on evidence in laws, regulations, and rules, and must be verified as true before it can be used as a basis for determining the facts of the case.” Evidence obtained by illegal means shall not be used as a basis for determining the facts of a case. ” 20. Article 23 is renumbered as Article 26, and a new paragraph is added as Paragraph 4: “Where the market supervision and administration department uses electronic surveillance equipment to collect and document facts of violations in accordance with laws and administrative regulations, it shall act in conformity with the relevant provisions of the Administrative Penalty Law of the People’s Republic of China.” ” 21. Article 24 is renumbered as Article 27, and its first paragraph is amended to read: “Public documents formed outside the territory of the People’s Republic of China shall be certified by a notary office in the country where they were issued, or the certification procedures specified in the treaties concluded between the People’s Republic of China and that country shall be followed.” Evidence relating to identity relations shall be certified by a notary office in the country where it is located, and authenticated by the embassies or consulates of the People’s Republic of China in that country, or the certification procedures specified in the relevant treaties concluded between the People’s Republic of China and that country shall be followed. ” Revise the second paragraph to read: “Evidence obtained in the **Special Administrative Regions of the People’s Republic of China, the Macao Special Administrative Region, and Taiwan region shall be subject to the relevant certification procedures.” ” 22. Article 32 is renumbered as Article 35, and the term “seven days” therein is amended to “seven working days”. 23. Article 34 shall be renumbered as Article 37; the phrase “Article 18” therein shall be deleted. 24. Article 38 shall be renumbered as Article 41. Paragraph 3 shall be revised to read: “Unless otherwise provided by laws or regulations, items that are prone to damage, loss, spoilage, difficult to store, incur excessively high storage costs, or are seasonal goods and thus not suitable for long-term preservation may, prior to being designated as confiscated property, with the consent or upon application by the right holder and with approval from the head of the market supervision and administration department, be disposed of in accordance with the law after relevant measures have been taken to preserve evidence.” ； Where the right holder is unidentified, a public announcement may be made in accordance with the law. If, after the expiration of the announcement period, there is still no consent or application from any right holder, disposition may be carried out in accordance with the law. The proceeds from preliminary disposals are managed in accordance with the cash management procedures applicable to the case. ” 25. Article 39 shall be renumbered as Article 42. In the second paragraph, “Where perishable goods or other items difficult to store have been auctioned or sold, the proceeds from such auction or sale shall be refunded.” The phrase “If the selling price is significantly lower than the market price at the time of sale, causing losses to the parties involved, compensation shall be provided” shall be revised to “If the market supervision and administration department has disposed of the property in accordance with the law and has received proceeds therefrom, such proceeds shall be returned.” If prior handling is clearly improper and causes losses to the party concerned, compensation shall be provided.” Replace “Article 74” in the third paragraph with “Article 82”. 26. Article 42 is renumbered as Article 45 and divided into two paragraphs. The first paragraph reads: “When handling administrative penalty cases, if the market supervision and administration department truly needs the assistance of relevant authorities or other market supervision and administration departments in conducting investigations and collecting evidence, it shall issue a letter requesting such assistance.” ” The second clause states: \"The market supervision and administration department that receives the request for assistance in an investigation shall provide such assistance regarding matters within its jurisdiction, and shall complete the relevant work within 15 working days from the date of receiving the request.\" If completion needs to be postponed, the market supervision and administration department that requested the investigation should be informed prior to the expiration of the deadline. ” 27. Article 45 is renumbered as Article 48, and its two paragraphs are merged into one. The phrase “Upon the completion of the investigation into a case, the handling agency shall prepare a report on the completion of the investigation and submit it, along with the case documents, to the reviewing agency for examination” is revised to “Upon the completion of the investigation into a case, the handling agency shall prepare a report on the completion of the investigation”. 28. Article 46 is renumbered as Article 49 and amended into three paragraphs. The first paragraph reads: “The case-handling agency shall submit the investigation conclusion report together with the case materials to the review agency of the market supervision and administration department for review.” ” The second clause reads: “Review is divided into legal review and case review.” ” The third clause states: “Case handlers shall not serve as reviewers.” ” 29. Add a new article as Article 50, divided into three paragraphs. The first paragraph reads: “In the following cases involving complex circumstances or serious illegal acts for which administrative penalties are to be imposed, prior to the person in charge of the market supervision and administration department making a decision on the administrative penalty, it shall be the personnel responsible for legal review of administrative penalty decisions who conduct such legal review.” ； No decision may be made without legal review or if the review is unsuccessful: \"(1) Those involving significant public interests\" ； “(II) Those that are directly related to the significant rights and interests of the parties or third parties, and have gone through a hearing process ； “(III) The case is complex and difficult, involving multiple legal relationships ； “(IV) Other circumstances stipulated by laws and regulations that require legal review. ” The second clause reads: “For the cases specified in the second item of the preceding paragraph, a legal review is conducted after the hearing procedure is completed.” ” Paragraph 3 reads: “Market supervision and administration departments at or above the county level may stipulate specific provisions regarding the scope of cases subject to legal review under Paragraph 1.” ” 30. Add a new article as Article 51, divided into two paragraphs. The first paragraph reads: “Legal review shall be carried out by the legal affairs department of the market supervision and administration department or other relevant agencies.” ” The second clause states: \"Those who are working for the market supervision and administration authorities for the first time and are responsible for reviewing administrative penalty decisions from a legal perspective must obtain a legal professional qualification by passing the **uniform legal professional qualification examination.\" ” 31. Add a new article as Article 52, divided into three paragraphs. The first paragraph shall read: “In cases subject to the ordinary procedure other than those specified in Paragraph 1 of Article 50 of these provisions, a case review shall be conducted.” ” The second clause states: “Case review is carried out by the case-handling units of the market supervision and administration department or other relevant agencies.” ” Paragraph 3 states: “In cases where an affiliate of the market supervision and administration department imposes administrative penalties in its own name, the affiliate is responsible for reviewing the case.” ” 32. Article 47 is renumbered as Article 53, and the term “case review” therein is changed to “review”. 33. Article 51 is revised to Article 57; in the first paragraph, it is stipulated that after a recommendation for administrative punishment is approved, the market supervision and administration department shall inform the party concerned in writing of the facts, reasons, and basis for the proposed administrative punishment decision, and shall also inform the party of its right to make statements and defenses in accordance with the law. Where the proposed administrative penalty falls within the scope of a hearing, the party shall also be informed of their right to request a hearing” shall be revised to “In cases where an administrative penalty is proposed, before making a decision on such penalty, the market supervision and administration department shall inform the party in writing of the details of the proposed penalty, as well as the facts, reasons, and legal basis for it, and shall also inform the party of their rights to present statements and defenses in accordance with the law. If the administrative penalty proposed falls within the scope of a hearing, the party shall also be informed of their right to request a hearing. Change “three working days” in the second paragraph to “five working days”” ； Change “No request for a hearing” to “No request for a hearing was made”. 34. Article 52 is revised to Article 58, and the phrase “Administrative penalties shall not be aggravated due to the parties’ statements, defenses, or requests for a hearing” is amended to “Administrative penalties shall not be imposed more severely as a result of the parties’ statements, defenses, or requests for a hearing”. 35. Article 54 is renumbered as Article 60, and the phrase “no administrative penalty shall be imposed” in Item 3 of Paragraph 1 is amended to “no administrative penalty will be imposed”. Add a new clause as the second one: \"For cases specified in Paragraph 1 of Article 50 of these regulations for which administrative penalties are to be imposed, such decisions shall be made through collective discussion by the persons in charge of the market supervision and administration department.\" ” Delete the original second paragraph. 36. Add a new article as Article 61: “Where no administrative penalty shall be imposed on a party for its illegal acts in accordance with the law, the market supervision and administration department shall provide education to such party.” ” 37. Article 55 is renumbered as Article 62, and its second item is amended to read: “Facts and evidence of violations of laws, regulations, and rules.” Modify the fifth item to: “Methods and deadlines for fulfilling administrative penalties”. Modify the sixth item to: “Ways and time limits for applying for administrative reconsideration and filing administrative lawsuits”. 38. Article 56 is renumbered as Article 63, and amended to read: “Administrative penalty decisions made by the market supervision and administration department that have a certain social impact shall be made public in accordance with relevant regulations.” ” Add another clause as the second one: \"Where a publicly announced administrative penalty decision is amended, revoked, deemed unlawful, or declared invalid in accordance with the law, the market supervision and administration department shall withdraw the information regarding that administrative penalty decision within three working days and provide an explanation for such action.\" ” 39. Article 57 is renumbered as Article 64, and the phrase in Paragraph 1 reading “Cases handled under the ordinary procedure shall have a decision rendered within 90 days as of the date of case filing” is modified to “Cases handled under the regular procedure shall have a decision rendered within 90 days as of the date of case filing”. Modify the second paragraph to read: “During the handling of a case, time spent on suspension, hearings, announcements, as well as testing, inspection, quarantine, appraisal, identification or verification by the right holder, and orders to return any overcharged amounts are not included in the time frame referred to in the previous paragraph for handling the case.” ” 40. Add one article to be Article 65: “In the event of emergencies such as major infectious disease outbreaks, in order to control, mitigate, and eliminate the social hazards caused by such emergencies, market regulation authorities shall impose swift and severe penalties, in accordance with the law, on any acts that violate the measures for responding to emergencies.” ” 41. Article 58 is renumbered as Article 66 and amended to read: “Where the facts of the violation are clear and there is a legal basis for it, an administrative penalty in the form of a fine of up to 200 yuan for natural persons, or up to 3,000 yuan for legal persons or other organizations, or a warning, may be imposed on the spot.” Where otherwise provided by law, such provisions shall prevail. ” 42. Article 59 is renumbered as Article 67, and its second paragraph is amended to read: “The administrative penalty decision shall be signed or sealed by the case handler and delivered to the party concerned on the spot.” If the party refuses to sign for it, this shall be indicated on the administrative penalty decision document. ” 43. Article 60 is renumbered as Article 68, and the term “remedial measures” therein is revised to “remedial measures and time limits”. 44. Article 61 shall be renumbered as Article 69. The phrase “the parties concerned shall be informed of the facts, reasons, and basis for the decision on administrative punishment” therein shall be revised to “the parties concerned shall be informed of the proposed content of the administrative punishment as well as the relevant facts, reasons, and basis”. 45. Article 63 is renumbered as Article 71, and the phrase in the first paragraph reading “The party shall fulfill its obligations within the time limit specified in the administrative penalty decision” is amended to “The party shall fulfill its obligations within the time limit stated in the administrative penalty decision”. 46. Article 64 is renumbered as Article 72, and the phrase “pay the fines and forfeits through a designated bank” in the first paragraph is modified to “pay the fines and forfeits through a designated bank or an electronic payment system”” ； In the first item, change “twenty yuan” to “one hundred yuan”” ； In the second item, “fifty yuan” should be changed to “two hundred yuan”, and “one thousand yuan” should be changed to “three thousand yuan”” ； In the third item, “the party has genuine difficulties in paying the fine to the designated bank” is revised to “the party has genuine difficulties in paying the fine to the designated bank or through an electronic payment system”. Modify the second paragraph to read: “When case handlers collect fines on the spot, they must issue the party concerned with a special receipt uniformly issued by the financial department of the State Council or the financial departments of provinces, autonomous regions, or municipalities directly under the Central Government.” ” 47. Article 65 is amended to Article 73, and the phrase “two days” appears three times in it and is replaced with “two working days”. 48. Article 66 is renumbered as Article 74, and the phrase “Where the market supervision and administration department agrees to allow the party to pay the fine in installments or on a deferred basis, it shall inform the party in writing of the deadline for such deferred or installment payment” is revised to “Where the market supervision and administration department agrees to allow the party to suspend or pay the fine in installments, it shall inform the party in writing of the deadline for such suspension or installment payment”. 49. Article 67 shall be renumbered as Article 75. The phrase “the amount of additional fines imposed shall not exceed the amount of fines payable” therein shall be revised to “the amount of additional fines imposed shall not exceed the amount of the fines”. 50. Article 68 is revised to Article 76, and the term “ten days” therein is changed to “ten working days”. Add a new clause as the second one: \"Where the market supervision and administration department approves a postponement or installment payment of the fine, the deadline for applying to the people’s court for compulsory enforcement shall be calculated from the end of the period during which the payment is suspended or made in installments.\" ” 51. Delete Article 69. 52. Article 70 is renumbered as Article 77, and the term “general procedure” therein is changed to “ordinary procedure”” ； In the fourth item, “Article 54” is amended to “Article 60”. 53. Add a new article as Article 79: “The market supervision and administration department shall, in accordance with the law, record in writing, audio-visual form, or other similar ways the entire process of administrative penalties, including their initiation, investigation and evidence collection, review, decision-making, service, and enforcement, and shall archive such records in accordance with the provisions of Article 78 of these regulations.” ” 54. Article 73 is renumbered as Article 81, and the term “seven days” therein is amended to “seven working days”” ； Change “Article 74” to “Article 82” therein” ； Change “Article 75” to “Article 83” therein. 55. Article 74 shall be renumbered as Article 82. The original third item shall be revised to become the fourth item. The phrase “service may be effected by mail or by entrusting the local market regulation authority to effect service” therein shall be revised to read “service may be effected by mail or by entrusting the local market regulation authority, or by referring the matter to other departments for service.”” ； Change “In the case of delivery by delegation, the date on which the recipient signs for receipt shall be regarded as the date of delivery” to “In the case of delivery by delegation or transfer, the date on which the recipient signs for receipt shall be regarded as the date of delivery”. Change the original fourth item to the third item, and modify “in addition to the administrative penalty decision letter, with the consent of the person to whom it is served” to “with the consent of the person to whom it is served and the signing of a confirmation letter regarding the delivery address”. 56. Article 77 is renumbered as Article 85, and its second paragraph is amended to read: “These provisions shall apply to the imposition of administrative penalties by organizations authorized by laws and regulations to perform market supervision and management functions.” ” Appendix 2 Amendments to the Interim Provisions on Hearings for Administrative Penalties in Market Regulation. 1. Change the title to: “Provisions on Hearings for Administrative Penalties in Market Regulation”. 2. Amend the provision in Paragraph 1, Article 4, which reads “If the hearing chairperson, hearing officers, recorders, or interpreters have a direct interest in the parties involved, they shall recuse themselves,” to read “If the hearing chairperson, hearing officers, recorders, or interpreters have a direct interest in the case or any other relationship that may affect the impartial administration of justice, they shall recuse themselves.” III. Amend Paragraph 1 of Article 5 to read as follows: “Where the market supervision and administration department intends to impose one of the following administrative penalty decisions, it shall inform the party concerned of their right to request a hearing: ‘(1) Ordering suspension of production or business operations, ordering closure, or imposing restrictions on engaging in certain activities’” ； “(2) Downgrading of qualification level, revocation of licenses or business licenses ； “(III) Impose a fine of not less than 10,000 yuan on natural persons, and not less than 100,000 yuan on legal persons or other organizations ； “(IV) Administrative penalties in the form of confiscation of the illegal gains and illegal property held by natural persons, legal entities, or other organizations, where the total value of such items reaches the amount specified in item (III) ； “(5) Other relatively severe administrative penalties ； “(6) Other circumstances stipulated by laws, regulations, and rules. ” IV. Amend the phrase “it shall inform the party in writing of the facts, reasons, and basis for the proposed administrative penalty” in Article 6 to read “it shall inform the party in writing of the details of the proposed administrative penalty as well as the facts, reasons, and basis thereof”. V. Change the two instances of “three working days” in Article 7 to “five working days”” ； In 2 places, “hold a hearing” was changed to “hearing”. VI. Change “require a hearing” in Articles 13 and 18 to “require a hearing”. VII. Modify the phrase in Paragraph 1 of Article 20, which reads “and the notice of the hearing shall be served on the parties seven days prior to the holding of the hearing,” to “and the notice of the hearing shall be served on the parties seven working days prior to the holding of the hearing.” In paragraph 3, the phrase “The hearing officer shall notify the third party of the time and place of the hearing before it is held” shall be revised to “The hearing officer shall notify the third party of the time and place of the hearing seven working days before it is held”. VIII. Change “seven days before the hearing” in Article 21 to “seven working days before the hearing”. IX. Modify the phrase in Paragraph 1 of Article 22 from “except in cases involving **state secrets, trade secrets, or personal privacy” to “except in cases where **state secrets, trade secrets, or personal privacy are required by law to be kept confidential”. Change “three days prior to the hearing” in the second paragraph to “three working days prior to the hearing”. X. In Paragraph 1 of Article 25, the original Item 4 shall be revised to two items: Item 4 and Item 5. Item 4 reads: “Cross-examination”” ； The fifth item is: “Debate”. Change the original fifth item of the first paragraph to the sixth item. 11. Modify the phrase “the circumstances shall be recorded in the hearing transcript” in Paragraph 2 of Article 28 to “the hearing officer shall indicate them in the hearing transcript”. 12. A new paragraph shall be added to Article 29 as Paragraph 2: “The market regulation and supervision authorities shall, based on the transcript of the hearing and in light of the opinions and suggestions put forward in the hearing report, make a decision in accordance with the relevant provisions of the ‘Procedures for Administrative Penalties in Market Regulation and Supervision’.” ” 13. Amend Paragraph 2 of Article 32 to read: “These Provisions shall apply to administrative penalty hearings held by organizations authorized by laws and regulations to perform market supervision and management functions.” ” 14. Amend Article 33 to read: “The provisions regarding the service of enforcement documents in these Measures shall be in accordance with the relevant regulations of the Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration.” ” Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration (Issued on December 21, 2018, by Order No. 2 of the State Administration for Market Regulation; amended in accordance with Order No. 42 of the State Administration for Market Regulation dated July 2, 2021, titled “Decision of the State Administration for Market Regulation on Amending the Interim Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration and Two Other Regulations”) Chapter I General Provisions Article 1 These provisions are formulated in order to standardize the procedures for administrative penalties in market supervision and administration, ensure that market supervision and administration agencies impose administrative penalties in accordance with the law, and protect the legitimate rights and interests of natural persons, legal persons, and other organizations, in light of laws and administrative regulations such as the Administrative Penalty Law of the People’s Republic of China and the Administrative Coercion Law of the People’s Republic of China. Article 2 These Provisions shall apply to the imposition of administrative penalties by market supervision and administration departments. Article 3 When imposing administrative penalties, market regulation and supervision authorities shall adhere to the principles of fairness and transparency, combine punishment with education, and ensure that the facts are clear, evidence is conclusive, the applicable legal basis is correct, procedures are lawful, and the penalties are appropriate. Article 4: The market supervision and administration department shall implement a recusal system when imposing administrative penalties. Those involved in handling a case who have a direct interest in the case or other relationships that may affect impartial enforcement shall recuse themselves. The recusal of the principal responsible person of the market regulation and supervision department shall be decided through collective discussion by the department’s responsible persons ； The recusal of other persons in charge within the market supervision and administration department shall be decided by the principal person in charge of that department ； The recusal of other relevant persons shall be decided by the person in charge of the market supervision and administration department. The investigation into the case shall not be halted prior to the issuance of a decision to dismiss it. Article 5 The market supervision and administration departments, as well as the personnel involved in handling cases, shall keep confidential, in accordance with the law, any **secrets, trade secrets, and personal privacy that come to their knowledge during the process of imposing administrative penalties. Article 6 The superior market supervision and administration department shall strengthen supervision over the administrative penalties imposed by the subordinate market supervision and administration departments. Market supervision and administration departments at all levels shall strengthen supervision over their internal agencies and dispatched offices, as well as those entrusted with the implementation of administrative penalties. Chapter 2 Jurisdiction Article 7 Administrative penalties shall be under the jurisdiction of the market supervision and administration department at or above the county level where the illegal act occurred. Where laws, administrative regulations, or departmental rules provide otherwise, such provisions shall prevail. Article 8 The market supervision and administration departments at the county level and at the city level with districts have jurisdiction, in accordance with their authority, over administrative penalty cases that occur within their respective jurisdictions. Where laws, regulations, or rules stipulate that matters shall be under the jurisdiction of market regulation departments at or above the provincial level, such stipulations shall prevail. Article 9: The dispatched agencies of the market supervision and administration department shall impose administrative penalties in the name of the department within the scope of authority determined by the department, unless laws or regulations authorize them to impose such penalties in their own name. Market supervision and administration departments at the county level or above may, within their statutory authority, delegate in writing the implementation of administrative penalties to organizations that meet the conditions stipulated in the Administrative Penalty Law of the People’s Republic of China. The entrusted organization shall impose administrative penalties in the name of the entrusting administrative authority within the scope of the delegation ； Administrative penalties may no longer be entrusted to any other organization or individual for enforcement. The power of attorney shall specify the specific matters entrusted, the scope of authority, the term, etc. The entrusting administrative organs and the entrusted organizations shall make the power of attorney public. Article 10: The illegal acts of operators of online trading platforms, as well as those of online traders who sell goods or provide services through their own websites or other online services, shall be under the jurisdiction of the market supervision and administration departments at the county level or above where they are located. The illegal activities of operators on the platform are under the jurisdiction of the market supervision and administration authorities at the county-level or higher where they actually conduct their business. Where market supervision and administration departments at or above the county level where the operator of an online trading platform is domiciled first discover clues of illegal activities or receive complaints and reports, they may also exercise jurisdiction. Article 11 Administrative penalties for the act of publishing illegal advertisements through mass media such as radio, film, television, newspapers, periodicals, and the Internet shall be imposed by the market supervision and administration authorities in the locality where the advertiser is situated. If it is difficult for the market supervision and administration department in the location of the ad publisher to oversee advertisers and ad operators based in other locations, the illegal activities of such advertisers and ad operators can be referred to the market supervision and administration department in their respective locations for handling. Regarding illegal activities in online advertising, the market supervision and administration authorities in the location where the advertiser is based, or where the advertising agency is located, may also assume jurisdiction if they first discover evidence of such violations or receive complaints or reports. Administrative penalties for advertisers who publish illegal online advertisements on their own are imposed by the market supervision and administration authorities in the location where the advertiser is based. Article 12 Where two or more market supervision and administration departments have jurisdiction over the same illegal act committed by a party, the jurisdiction shall lie with the market supervision and administration department that first files a case. Article 13: If two or more market supervision and administration departments have a dispute over jurisdiction, they shall attempt to resolve it through consultation within seven working days from the date the dispute arises; if no agreement is reached, they shall submit the matter to their common superior market supervision and administration department for determination of jurisdiction ； It can also be directly assigned jurisdiction by the common higher-level market supervision and administration authority. Article 14: If the market supervision and administration department discovers that a case assigned for investigation does not fall under its jurisdiction, it shall transfer the case to the market supervision and administration department that has jurisdiction over it. If the market supervision and administration department to which the case is transferred has objections regarding its jurisdiction, it shall submit the matter to the common higher-level market supervision and administration department for jurisdictional assignment, and shall not transfer the case on its own again. Article 15: When it deems necessary, the superior market supervision and administration department may assign cases under its jurisdiction to lower-level market supervision and administration departments for handling. Where laws, regulations, and rules explicitly stipulate that a case shall be under the jurisdiction of a higher-level market regulation authority, such authority shall not delegate the case to a lower-level market regulation authority for handling. If the higher-level market supervision and administration department deems it necessary, it may directly investigate cases under the jurisdiction of lower-level market supervision and administration departments, or it may assign such cases to other lower-level market supervision and administration departments for handling. If the lower-level market supervision and administration department believes that there are special reasons why it is difficult to handle a case that falls under its jurisdiction according to the law, it may request that the higher-level market supervision and administration department take charge of the case or assign someone else to handle it. Article 16: In cases referred to the market supervision and administration department at the next higher level for jurisdiction or designated jurisdiction, such department shall determine the authority responsible for handling the case within seven working days from the date it receives the submitted materials. Article 17: If the market supervision and administration department discovers that a case under investigation falls under the jurisdiction of another administrative department, it shall promptly transfer it to the relevant department in accordance with the law. If the market supervision and administration authorities discover that an illegal act constitutes a crime, they shall promptly transfer the case to the judicial authorities, and handle the handover procedures for the items involved in the case as well as other materials related to it in accordance with relevant regulations. Chapter 3 General Procedures for Administrative Penalties Article 18 The market supervision and administration department shall, within 15 working days from the date it discovers a lead regarding an illegal act through its powers of supervision and inspection, or via complaints, reports, referrals from other departments, or assignments from higher authorities, conduct an investigation. It is up to the person in charge of the market supervision and administration department to decide whether to initiate a case ； Under special circumstances, with the approval of the person in charge of the market supervision and administration department, the period may be extended by fifteen working days. Unless otherwise provided by laws, regulations, and rules. The time required for testing, inspection, quarantine, appraisal, as well as for the identification or recognition by the rights holder, is not included in the period specified in the preceding paragraph. Article 19 Upon verification, a case shall be filed if the following conditions are met: (1) There is preliminary evidence indicating the existence of violations of laws, regulations, and rules regarding market supervision and management ； (II) Administrative penalties should be imposed in accordance with laws, regulations, and rules pertaining to market supervision and administration ； (III) Falling under the jurisdiction of this department ； (IV) Within the statutory time limit for imposing administrative penalties. If it is decided to initiate an investigation, an approval form for initiating the case shall be filled out, and the person in charge of the investigating agency shall assign two or more investigators with administrative law enforcement qualifications to handle the investigation. Article 20 Upon verification, in any of the following circumstances, no case shall be initiated: (1) The illegal act is minor and has been promptly corrected, with no harmful consequences resulting therefrom ； (II) First-time violation with minor harmful consequences and prompt correction ； (3) The parties have sufficient evidence to prove that they had no subjective fault, except as otherwise provided by laws or administrative regulations ； (IV) Other circumstances under which a case may not be filed in accordance with the law. If it is decided not to file a case, an approval form for not filing a case shall be filled out. Article 21: Case handlers shall conduct investigations into cases in a comprehensive, objective, fair, and timely manner, collect and obtain evidence, and carry out inspections in accordance with the provisions of laws, regulations, and rules. When collecting or obtaining evidence from the party for the first time, they shall be informed of their rights to make statements, defend themselves, and request recusal. Article 22: When conducting investigations or inspections, there must be no fewer than two officers, and they shall proactively present their law enforcement credentials to the parties involved or relevant persons. Article 23: Case handlers shall collect evidence in accordance with the law. Evidence includes: (1) documentary evidence ； (II) Physical evidence ； (III) Audio-visual materials ； (IV) Electronic data ； (5) Testimony of witnesses ； (VI) Statements of the parties ； (7) Expert opinion ； (8) Records of inspection and on-site notes. Evidence materials obtained in accordance with the law during pre-filing verification or supervision and inspection can be used as evidence in the case. For cases transferred, the evidence materials collected by the transferring authority through its own powers can be used as evidence in the case. The aforementioned evidence must comply with the provisions on evidence set forth in laws, regulations, and rules, and must be verified as true before it can be used as a basis for determining the facts of a case. Evidence obtained by illegal means shall not be used as a basis for determining the facts of a case. Article 24 The documentary and physical evidence collected or obtained shall be the original copies or items. If it is difficult to obtain the original documents or items, copies, photocopies, or transcriptions can be used, and photographs or videos that adequately reflect the appearance or content of the original documents or items can also be taken. Copies, photocopies, transcriptions, as well as photographs and videos shall be checked by the person providing the evidence to confirm their accuracy compared to the original items, after which it shall be stated that they are consistent with the originals, along with the date of issuance and the source of the evidence; the person shall also sign or seal them. Article 25 The audio-visual materials collected and retrieved shall be the original carriers of the relevant materials. If it is difficult to obtain the original medium containing the audio-visual materials, copies can be made, with details such as the method of production, the time of production, and the person who produced them indicated. Audio material should be accompanied by a written record of the audio content. Article 26 The electronic data collected or retrieved shall be the original medium of the relevant data. If it is difficult to obtain the original medium containing electronic data, evidence can be collected through methods such as copying, entrusting analysis, documenting in a fixed format, or taking photographs and videos, while indicating the method of creation, the time of creation, and the person who created it. Market supervision and administration departments can use internet information systems or devices to collect and preserve evidence of illegal activities. Internet information systems or devices used to collect and preserve evidence of illegal activities must comply with relevant regulations to ensure the authenticity and integrity of the electronic data collected and preserved. The market supervision and administration department may assign or hire personnel with specialized knowledge to assist case handlers in investigating and collecting electronic data related to the case. Where the market supervision and administration authorities use electronic surveillance equipment to collect and document evidence of violations in accordance with laws and administrative regulations, they shall act in compliance with the relevant provisions of the Administrative Penalty Law of the People’s Republic of China. Article 27 Public documents and evidence formed outside the territory of the People’s Republic of China shall be certified by a notary office in the country where they were issued, or the certification procedures specified in the relevant treaties concluded between the People’s Republic of China and that country shall be followed. Evidence relating to identity relations shall be certified by a notary office in the country where it is located, and authenticated by the embassies or consulates of the People’s Republic of China in that country, or the certification procedures specified in the relevant treaties concluded between the People’s Republic of China and that country shall be followed. Evidence obtained in the **Special Administrative Regions of the People’s Republic of China, the Macao Special Administrative Region, and Taiwan region must go through the relevant certification procedures. Evidence in a foreign language, such as foreign-language documentary evidence or audiovisual materials, shall be accompanied by an accurate Chinese translation prepared by an institution qualified for translation work, stamped by the translation institution or signed by the translator. Article 28: When inspecting items or locations suspected of being involved in illegal activities, the parties concerned shall be notified to be present. The case handlers shall prepare a record of the scene, specifying details such as time, place, and events, to be signed or sealed by the case handlers and the parties involved. Article 29: Case handlers may question the parties involved as well as other relevant entities and individuals. Inquiries should be conducted individually. A record should be made of the interrogation, and this record shall be submitted to the person being interrogated for verification ； For those who have difficulty reading, it should be read to them. If there are any errors or omissions in the transcript, it should be permitted to make corrections or additions. The altered portion shall be signed, sealed, or otherwise confirmed by the person being questioned. After verification, the person being questioned signs, seals, or otherwise confirms each page of the record. The case handlers shall sign the record. Article 30: Case handlers may request the parties involved and other relevant entities and individuals to provide supporting documents or other materials related to the alleged illegal acts within a specified period, and the providers of such materials shall sign or seal them. In the process of investigating cases involving infringement and counterfeiting, market supervision and administration authorities may request the rights holder to identify whether the products in question were manufactured by the rights holder or with the rights holder’s permission, or they may ask the rights holder to conduct an assessment of relevant matters. Article 31: When conducting sampling for evidence collection, the market supervision and administration department shall notify the parties involved to be present. The case handlers shall prepare sampling records, seal the samples, and issue an inventory, with the case handlers and the parties signing or stamping on the seals and relevant records. When collecting samples through online purchases, telephone orders, or similar means, it is necessary to document the transaction process, the unpacking and inspection of goods, and the sealing of samples by taking photos, screenshots, audio recordings, or videos. Where laws, regulations, rules, or **relevant provisions specify requirements regarding the qualifications of sampling agencies or the sampling methods, the market regulation authorities shall entrust relevant agencies to conduct the sampling or carry out the sampling in accordance with the prescribed procedures. Article 32: In order to clarify the facts of a case, where it is necessary to conduct tests, inspections, quarantines, or expert evaluations on specific matters related to the case, the market supervision and administration department shall entrust such tasks to institutions with statutory qualifications ； In the absence of a legally qualified institution, other eligible institutions may be entrusted to carry out the task. The results of testing, inspection, quarantine, and appraisal shall be communicated to the parties involved. Article 33: In cases where evidence may be lost or difficult to obtain in the future, the market supervision and administration department may take measures to register and preserve on a provisional basis the evidence related to the alleged illegal acts. The adoption or revocation of measures for advance registration and preservation shall be approved by the person in charge of the market supervision and administration department. In cases of urgency where immediate measures of registration and preservation are required on the spot, the case handlers shall report to the person in charge of the market supervision and administration department within 24 hours and complete the approval procedures thereafter. If the person in charge of the market supervision and administration department believes that pre-registration and preservation measures should not be taken, such measures shall be lifted immediately. Article 34: When evidence is temporarily registered and preserved, it shall be counted on the spot, and a list shall be prepared. The parties and the case handlers shall sign or seal the list, one copy of which shall be given to the parties, and a notice of temporary registration and preservation of the evidence shall be delivered on the spot. During the period of prior registration and preservation, the parties or relevant persons shall not damage, destroy, or transfer the evidence. Article 35 For evidence that has been temporarily registered and preserved, the following measures shall be taken within seven working days: (1) Take evidence preservation measures such as recording, copying, taking photos, and recording videos in a timely manner depending on the circumstances ； (II) Those that require testing, inspection, quarantine, or appraisal shall be sent for such testing, inspection, quarantine, or appraisal ； (III) Where administrative coercive measures such as seizure and confiscation may be taken in accordance with relevant laws and regulations, decide to adopt such administrative coercive measures ； (IV) If the facts of the violation are established and confiscation is warranted, an administrative penalty decision shall be issued to confiscate the illegal items ； (5) If the facts of the violation do not exist, or although such facts do exist the property shall not be seized, detained, or confiscated in accordance with the law, a decision shall be made to lift the measures of preliminary registration and preservation. If relevant measures are not taken within the prescribed time, the preliminary registration and preservation measures shall be automatically lifted. Article 36 The market supervision and administration department may take administrative coercive measures such as sealing up and seizing in accordance with the provisions of laws and regulations. The adoption or lifting of administrative coercive measures shall be approved by the person in charge of the market supervision and administration department. In cases of urgency where administrative coercive measures need to be taken on the spot, the case handlers shall report to the person in charge of the market supervision and administration department within 24 hours and complete the approval procedures afterwards. If the person in charge of the market supervision and administration department believes that administrative coercive measures should not be taken, such measures shall be lifted immediately. Article 37: The market supervision and administration department shall carry out administrative coercive measures in accordance with the procedures stipulated in the Administrative Coercion Law of the People’s Republic of China, and shall deliver on the spot the decision letter and list regarding the implementation of such administrative coercive measures. Article 38: The period of seizure and detention shall not exceed thirty days ； In complex cases, with the approval of the person in charge of the market supervision and administration department, the period may be extended, but the extension shall not exceed 30 days. Unless otherwise provided by laws or administrative regulations. The decision to extend the seizure or confiscation shall be promptly notified in writing to the party concerned, along with the reasons therefor. If it is necessary to test, inspect, quarantine, or appraise an item, the period of seizure or detention does not include the time required for such testing, inspection, quarantine, or appraisal. The periods for testing, inspection, quarantine, and appraisal shall be specified and communicated in writing to the parties involved. Article 39: When seizing items consigned by a party, a notice of assistance in seizure shall be issued to request relevant entities to provide assistance, and the party shall be notified in writing. Article 40: If items suspected of being illegal and kept at the party’s residence or in their custody need to be seized, the party shall be ordered to take them out ； If the party refuses to remove it, the relevant local departments or units shall assist in removing it and go through the seizure procedures. Article 41: The seized or confiscated premises, facilities, or property shall be properly kept and must not be used or damaged ； The market supervision and administration department may entrust a third party to keep it, and such third party shall not damage it or transfer or dispose of it without authorization. Seized premises, facilities, or property shall be sealed with seals issued by the market supervision and administration department, and no one is allowed to use them arbitrarily. Unless otherwise provided by laws and regulations, items that are prone to damage, loss, deterioration, are difficult to store or require high storage costs, or are seasonal goods that are not suitable for long-term storage may, prior to being designated as confiscated property, be disposed of in accordance with the law after obtaining the consent or application of the rights holder and approval from the person in charge of the market supervision and administration department, as well as after taking relevant measures to preserve evidence ； Where the right holder is unidentified, a public announcement may be made in accordance with the law. If, after the expiration of the announcement period, there is still no consent or application from any right holder, disposition may be carried out in accordance with the law. The proceeds from preliminary disposals are managed in accordance with the cash management procedures applicable to the case. Article 42 Under any of the following circumstances, the market supervision and administration department shall promptly decide to lift the seizure or confiscation: (1) The party involved has committed no illegal act ； (II) The premises, facilities, or property seized or confiscated are not related to the illegal act ； (III) A decision has already been made regarding the illegal act, and there is no longer a need for seizure or confiscation ； (IV) The period for seizure and detention has expired ； (5) Other circumstances where it is no longer necessary to take measures of seizure or confiscation. Upon lifting the seizure or confiscation, the property shall be returned immediately, and the case handlers and the parties involved shall sign or stamp the property list. If the market supervision and administration department has disposed of the property in accordance with the law and obtained funds as a result, such funds shall be returned. If prior handling is clearly improper and causes losses to the parties involved, compensation shall be provided. Where the whereabouts of the parties are unknown or it is impossible to determine the owner of the items involved in the case, notification of collection shall be made in accordance with the method of service by public announcement stipulated in Item 5, Article 82 of these Provisions. If no one claims the items after the expiration of the announcement period, with the approval of the person in charge of the market supervision and administration department, the said items shall be turned over to the authorities, or auctioned according to law, and the proceeds shall be deposited in the state treasury. Article 43: During the process of investigation and evidence collection, if it is impossible to notify the parties involved, if they fail to appear or refuse to be interviewed, or if they refuse to sign, affix their seal, or provide confirmation by other means, the investigators shall note down the circumstances in the record or other documents. They shall also document the situation through audio or video recording. When necessary, relevant persons may be invited to serve as witnesses. Article 44: When conducting on-site inspections, questioning parties and other relevant entities and individuals, taking samples for evidence collection, applying measures such as preliminary registration and preservation, or imposing administrative coercive measures such as seizures or attachments, it is necessary to record the circumstances at the scene by means of photography, audio recording, video recording, etc., in accordance with relevant regulations. Article 45: When handling administrative penalty cases, if the market supervision and administration department truly needs the assistance of relevant authorities or other market supervision and administration departments in conducting investigations and collecting evidence, it shall issue a letter requesting such assistance. The market regulation authorities receiving a letter requesting assistance in an investigation shall render assistance regarding matters within their jurisdiction, and complete the relevant work within 15 working days from the date of receipt of such letter. If completion needs to be postponed, the market supervision and administration department that requested the investigation should be informed prior to the expiration of the deadline. Article 46 Under any of the following circumstances, the investigation into a case may be suspended upon approval by the person in charge of the market supervision and administration department: (1) The administrative penalty decision must be based on the outcome of a related case or other administrative decisions, and such related case has not yet been resolved or such other administrative decisions have not yet been made ； (2) Issues involving the application of laws, etc., which need to be referred to competent authorities for interpretation or confirmation ； (III) The case cannot be investigated temporarily due to force majeure ； (IV) The case cannot be investigated temporarily due to the missing whereabouts of the party involved ； (5) Other circumstances under which the investigation should be suspended. After the reasons for suspending the investigation have been removed, the investigation of the case shall be resumed immediately. Article 47 Where a natural person suspected of having committed an illegal act dies, or a legal person or other organization ceases to exist, and there is no successor to assume its rights and obligations, thereby making it impossible to continue the investigation of the case, the investigation may be terminated upon approval by the person in charge of the market supervision and administration department. Article 48: Upon completion of a case investigation, the handling agency shall prepare a report on the conclusion of the investigation. The report on the completion of case investigation includes the following contents: (1) Basic information of the parties involved ； (II) Source of the case, investigation process, and circumstances regarding the imposition of administrative coercive measures ； (III) Facts ascertained through investigation and key evidence ； (IV) Nature of the illegal act ； (V) Handling suggestions and basis ； (VI) Reasons for discretion and other matters that need to be explained. Article 49: The case-handling agency shall submit the investigation conclusion report together with the case materials to the review body of the market supervision and administration department for review. The review is divided into legal review and case review. Case handlers shall not serve as reviewers. Article 50 In the following cases involving complex circumstances or serious illegal acts for which administrative penalties are to be imposed, a legal review shall be conducted by personnel responsible for the legal review of administrative penalty decisions before the person in charge of the market supervision and administration department makes a decision on the administrative penalty ； No decision shall be made without legal review or if the review is unsuccessful: (1) those involving significant public interests ； (II) Those that are directly related to the significant rights and interests of the parties or third parties, and have gone through a hearing process ； (III) The case is complex and difficult, involving multiple legal relationships ； (IV) Other circumstances stipulated by laws and regulations that require legal review. For the cases specified in item 2 of the preceding paragraph, a legal review is conducted after the hearing procedure is completed. Market supervision and administration departments at the county level or above may make specific provisions regarding the scope of cases subject to legal review as mentioned in the first paragraph. Article 51 Legal review shall be carried out by the legal affairs department of the market supervision and administration department or other relevant agencies. Those who are new to the task of conducting legal reviews for administrative penalty decisions in market supervision and administration departments must obtain a legal professional qualification by passing the **Unified Legal Professional Qualification Examination. Article 52: For cases to which the ordinary procedure applies, except as provided in Paragraph 1, Article 50 of these Regulations, a case review shall be conducted. The review of cases shall be carried out by the case-handling agencies of market regulation departments or other agencies. In cases where an affiliate of the market supervision and administration department imposes administrative penalties in its own name, the affiliate is responsible for reviewing the case. Article 53 The main contents of the review include: (1) Whether jurisdiction exists ； (II) Are the basic circumstances of the parties clear? ； (3) Are the facts of the case clear and is there sufficient evidence? ； (IV) Is the qualitative assessment accurate? ； (5) Is the basis for application correct? ； (VI) Is the procedure legal? ； (7) Whether the handling is appropriate. Article 54 The reviewing body shall examine the case and submit written opinions and suggestions depending on the specific circumstances: (1) For cases with clear facts, sufficient evidence, accurate classification, correct applicable provisions, lawful procedures, and appropriate handling, it shall approve the proposed handling decision for the case ； (II) For cases with inaccurate qualitative assessments, incorrect applicable bases, illegal procedures, or improper handling, it is recommended that corrections be made ； (III) For cases with unclear facts and insufficient evidence, it is recommended to conduct further investigations ； (IV) Other opinions and suggestions deemed necessary to be put forward. Article 55 The review agency shall complete the review within ten working days from the date of receiving the review materials. Under special circumstances, it may be extended with the approval of the person in charge of the market supervision and administration department. Article 56: After the reviewing agency completes the review and returns the case documents, for cases for which administrative penalties are proposed, the case-handling agency shall submit the case documents, the recommendations for administrative penalties, and the review opinions to the person in charge of the market supervision and administration department for approval, and shall carry out procedures such as notification in accordance with the law ； For cases for which other administrative sanctions are recommended, the handling agency shall submit the case documents and review opinions to the person in charge of the market supervision and administration department for examination and decision. Article 57: In cases where an administrative penalty is to be imposed, before making such a decision, the market supervision and administration department shall inform the party concerned in writing of the details of the proposed penalty, as well as the facts, reasons, and legal basis for it, and shall also inform the party of their right to make statements and defenses in accordance with the law. If the administrative penalty proposed falls within the scope of a hearing, the party shall also be informed of their right to request a hearing. Where laws and regulations require that the party concerned be ordered to return any overcharged amount prior to the issuance of an administrative penalty decision, the amount intended to be ordered returned shall also be notified. If the party fails to exercise their right to make statements or defenses, or to request a hearing, within five working days from the date of delivery of the notice, it shall be deemed that they have waived such rights. Article 58: After informing the party concerned of the proposed administrative penalty decision, the market supervision and administration department shall give full consideration to the party’s opinions and review the facts, reasons, and evidence presented by the party. If the facts, reasons, or evidence presented by the party are valid, the market supervision and administration department shall accept them, and shall not impose a heavier administrative penalty merely because of the party’s statements, defenses, or requests for a hearing. Article 59 Where laws or regulations require the party concerned to return any overcharged amount, the market supervision and administration department shall, after hearing the party’s opinions and before making an administrative penalty decision, issue a notice ordering the refund, requiring the party to return the amount within a specified time limit. If it is difficult to locate the consumer or other business operator who overpaid, an order shall be issued to make a public announcement to help in their location. Article 60 The person in charge of the market supervision and administration department, after examining the report on the conclusion of the case investigation, the review opinions, the statements and defenses of the parties concerned, or the hearing reports, shall, depending on the circumstances, make one of the following decisions: (1) If there are indeed illegal acts for which administrative penalties are required by law, an administrative penalty decision shall be made based on the severity of the circumstances and the specific details ； (II) If there is indeed an illegal act, but there are circumstances under which no administrative penalty may be imposed in accordance with the law, then no administrative penalty shall be imposed ； (III) If the facts constituting an illegal act cannot be established, no administrative penalty shall be imposed ； (IV) Those that fall outside the jurisdiction of the market supervision and administration department shall be referred to other administrative departments for handling ； (5) If the illegal act constitutes a crime, it shall be referred to the judicial authorities. For cases covered by Paragraph 1 of Article 50 of these regulations for which administrative penalties are intended to be imposed, a collective decision shall be made by the person in charge of the market supervision and administration department. Article 61 Where no administrative penalty shall be imposed on a party for its illegal acts in accordance with the law, the market supervision and administration department shall provide education to such party. Article 62: When making a decision on administrative punishment, the market supervision and administration department shall prepare an administrative punishment decision document and affix its official seal to it. The contents of an administrative penalty decision include: (1) the basic information of the party, such as name or title and address ； (II) Facts and evidence of violations of laws, regulations, and rules ； (III) Admittance of the parties’ statements and defenses and the reasons therefor ； (IV) Content and basis of administrative penalties ； (V) Methods and deadlines for enforcing administrative penalties ； (VI) Procedures and time limits for applying for administrative reconsideration and filing administrative lawsuits ； (7) The name of the market supervision and administration department that issued the administrative penalty decision, and the date on which the decision was made. Article 63 Administrative penalty decisions made by market supervision and administration departments that have a certain social impact shall be made public in accordance with relevant regulations. If a publicly announced administrative penalty decision is amended, revoked, deemed unlawful, or declared invalid in accordance with the law, the market supervision and administration department shall withdraw the information regarding that administrative penalty decision within three working days and provide a public explanation for such action. Article 64: Decisions regarding cases handled under the ordinary procedure shall be made within ninety days as of the date of case filing. If, due to the complexity of the case or other reasons, it is not possible to make a decision within the prescribed time limit, an extension of thirty days may be granted with the approval of the person in charge of the market supervision and administration department. In cases where the situation is particularly complex or there are other special circumstances, and a decision cannot still be made despite the extension, the responsible persons of the market supervision and administration department shall hold a collective discussion to decide whether to extend the deadline further. If it is decided to extend it, a reasonable period for the extension must also be determined at the same time. During the handling of a case, periods such as suspensions, hearings, announcements, as well as testing, inspection, quarantine, appraisal, identification or differentiation by the right holder, and orders to return any overcharged amounts are not included in the time limit for handling the case referred to in the preceding paragraph. Article 65 In the event of emergencies such as major infectious disease outbreaks, in order to control, mitigate, and eliminate the social harm caused by such emergencies, the market supervision and administration authorities shall impose swift and severe penalties in accordance with the law on those who violate the measures for responding to such emergencies. Chapter 4: Summary Procedures for Administrative Penalties Article 66 Where the facts of the violation are clear and there is a legal basis for it, an administrative penalty decision may be made on the spot in the form of a fine of up to 200 yuan for natural persons, or up to 3,000 yuan or a warning for legal persons or other organizations. Where otherwise provided by law, such provisions shall prevail. Article 67 When applying the summary procedure to investigate and deal with illegal acts on the spot, the case handlers shall present their law enforcement credentials to the parties involved, investigate the facts of the violation on the spot, collect necessary evidence, and fill out an administrative penalty decision letter in a prescribed format and numbered. The administrative penalty decision shall be signed or sealed by the case handler and delivered to the party concerned on the spot. If the party refuses to sign for it, this shall be indicated on the administrative penalty decision document. Article 68 The administrative penalty decision issued on the spot shall specify the basic information of the party involved, the illegal act committed, the basis for the administrative penalty, the type of penalty, the amount of the fine, the methods and deadlines for payment, the methods and deadlines for seeking relief, the name of the department, the date, and the location, and shall be stamped with the seal of the market supervision and administration department. Article 69: Before making a decision on administrative punishment, the case handlers shall inform the party concerned of the content of the proposed administrative punishment as well as the facts, reasons, and legal basis for it, and shall also inform the party of their right to make statements and defenses. If the parties make statements and defenses, the case handlers shall record them in the transcript. Article 70: The relevant materials related to the handling of cases under the summary procedure shall be submitted by the case handlers to the market supervision and administration department where they are based for archiving and storage within seven working days from the date the administrative penalty decision is made. Chapter 5 Execution and Conclusion Article 71 Once an administrative penalty decision is rendered in accordance with the law, the party concerned shall fulfill it within the period specified in the decision. Where a party is dissatisfied with a administrative penalty decision and applies for administrative reconsideration or initiates an administrative lawsuit, the execution of the administrative penalty shall not be suspended, unless otherwise provided by law. Article 72 Where the market supervision and administration department imposes administrative penalties of fines or confiscation of illegal gains on a party, the party shall pay the fines and confiscated amounts within 15 days as of the date of receipt of the administrative penalty decision, through a designated bank or electronic payment system. In any of the following circumstances, the case handler may confiscate the fine on the spot: (1) when a fine of less than 100 yuan is imposed on the spot ； (2) Impose a fine of up to 200 yuan on natural persons and up to 3,000 yuan on legal persons or other organizations on the spot; if the fine is not collected on the spot, it will be difficult to enforce later ； (3) In remote, water-bound, or poorly accessible areas, where it is genuinely difficult for parties to pay fines to the designated bank or through an electronic payment system, upon request by the parties. Where law enforcement officers collect fines on the spot, they must issue to the parties concerned special receipts uniformly formulated by the financial department of the State Council or the financial departments of provinces, autonomous regions, and municipalities directly under the Central Government. Article 73: Fines collected on the spot by case handlers shall be delivered to the market supervision and administration department where they are based within two working days from the date of collection. Fines collected on the water at the scene shall be delivered to the local market supervision and administration department within two working days from the date of landing. The market supervision and administration department shall remit the fine to the designated bank within two working days. Article 74 If a party is genuinely financially distressed and needs to defer or pay the fine in installments, they shall submit a written application. With the approval of the person in charge of the market supervision and administration department, if it is permitted for the party concerned to defer or pay the fine in installments, the department shall inform the party in writing of the deadline for such deferral or installment payment. Article 75: If a party fails to pay the fine within the prescribed time, the market supervision and administration department may impose an additional fine of three percent of the amount of the original fine per day; however, the amount of this additional fine shall not exceed the amount of the original fine. Article 76: If the party fails to apply for administrative reconsideration or file an administrative lawsuit within the statutory time limit, nor complies with the administrative penalty decision, and still fails to fulfill such decision ten working days after receiving the reminder notice, the market supervision and administration department may, within three months from the expiration of the deadline, apply to the people’s court for compulsory enforcement in accordance with the law. Where the market regulation and supervision authority approves a postponement or installment payment of a fine, the time limit for applying to the people’s court for compulsory enforcement shall be calculated from the date when the period for postponement or installment payment of the fine expires. In cases subject to the ordinary procedure under Article 77, if one of the following circumstances occurs, the handling agency shall fill out the case closure approval form within 15 working days; upon approval by the person in charge of the market supervision and administration department, the case shall be closed: (1) The execution of the administrative penalty decision has been completed ； (2) The people’s court rules to terminate the execution ； (III) Cases where the investigation is terminated ； (IV) Those who make the decisions specified in items 2 to 5 of paragraph 1, Article 60 of these provisions ； (5) Other circumstances under which the case should be closed. Article 78: After a case is closed, the case handlers shall file and archive the case materials in accordance with the relevant regulations on archives management. Case files should be filed on a case-by-case basis, with complete materials and in a systematic and orderly manner. Case files can be divided into main files and supplementary files. The documents shall be filed in the following order: (1) Case-filing approval form ； (II) Administrative penalty decision and proof of service ； (III) Other legal documents issued to the parties and service receipts ； (IV) Evidence materials ； (5) Transcript of the hearing ； (VI) Documents for the disposal of property ； (7) Other relevant materials. The supplementary volumes are archived in the following order: (1) Materials originating from the case ； (II) Report on the conclusion of the investigation ； (III) Review comments ； (IV) Hearing Report ； (5) Case Closure Approval Form ； (VI) Other relevant materials. The storage and retrieval of case files shall be carried out in accordance with the relevant regulations on archive management. Article 79: The market supervision and administration department shall, in accordance with the law, record in writing, audio-visual form, or other similar ways the entire process of administrative penalties, including their initiation, investigation and evidence collection, review, decision-making, service, and enforcement, and shall file such records for preservation in accordance with the provisions of Article 78 of these regulations. Chapter 6 Periods and Service Article 80 Periods are calculated in hours, days, and months; the hour or day on which the period begins is not included. The period does not include transit time. If the last day of the period falls on a statutory holiday, the date on which the period expires shall be the first day following the statutory holiday. Article 81 The market supervision and administration department shall deliver the administrative penalty decision on the spot to the party concerned immediately after reading it out. If the party is not present, the administrative penalty decision shall be served on them within seven working days in accordance with the provisions of Articles 82 and 83 of these regulations. Article 82: When the market supervision and administration department serves legal documents, it shall do so in the following manner: (1) In the case of direct service, the recipient shall indicate the date of receipt on the service receipt form and sign or seal it; the date indicated by the recipient on the service receipt form shall be deemed the date of service. If the recipient is a natural person, and they are not present, it shall be delivered to an adult family member living with them for receipt ； If the recipient is a legal person or another organization, it shall be signed for by the legal representative of the legal person, the principal responsible person of the other organization, or the person designated by that legal person or organization to receive deliveries ； If the recipient has an agent, it may be delivered to that agent for receipt ； Where the addressee has designated a proxy to receive service on their behalf with the market regulation authority, the documents shall be delivered to and signed for by such proxy. The date on which the adult family member living with the recipient, the person designated by a legal person or other organization to receive documents, the agent, or the person acting as a receiver signs on the service receipt shall be deemed the date of service. (II) If the person to whom the document is to be served or an adult family member living with them refuses to sign for it, the market supervision and administration department may invite representatives from relevant grassroots organizations or the person’s employer to be present, so that they can explain the situation. The reason for the refusal and the date shall be recorded on the service receipt, which shall then be signed by the person who made the delivery and the witnesses, or otherwise confirmed, with the legal document being left at the person’s residence ； It is also possible to leave the enforcement document at the recipient’s residence and record the delivery process by taking photos or videos, which shall be deemed as delivery. (III) With the consent of the person to whom the documents are to be served and the signing of a confirmation form regarding the delivery address, legal documents may be delivered electronically via methods such as text messages, faxes, emails, or instant messaging accounts, as long as it is possible to confirm that they have been received. The market supervision and administration authorities shall document this process by taking photos, screenshots, recordings, or videos. The date on which text messages, faxes, emails, or instant messaging messages arrive in the recipient’s designated system shall be considered the date of delivery. (IV) If direct delivery is difficult, delivery by mail may be used, or the local market supervision and administration department may be entrusted to deliver it on behalf of the sender, or it may be handed over to other departments for delivery. In the case of delivery by mail, the date indicated on the receipt as the date of receipt shall be deemed the date of delivery ； In the case of delivery by delegation or transfer, the date on which the recipient signs for receipt shall be deemed the date of delivery. (5) If the person to whom the service is to be delivered is untraceable or it is not possible to serve them using the aforementioned methods, announcements can be posted on the bulletin boards of the market supervision and administration department as well as at the domicile of the person in question; announcements can also be published in newspapers or on the website of the market supervision and administration department. Sixty days after the date of issuance of the announcement shall be deemed as the date of service. When serving a notice by announcement, the reasons and process shall be stated in the case documents. When posting a notice on the bulletin board of the market regulation authority and at the domicile of the person served, measures such as taking photos or videos shall be taken to document the posting process. Article 83 The market supervision and administration department may require the recipient to sign a delivery address confirmation form; delivery to the address confirmed by the recipient shall be deemed as effective delivery. If the recipient’s delivery address changes, they shall promptly inform the market supervision and administration department in writing ； If notification is not provided in a timely manner, the market supervision and administration department shall deliver the documents to the original address, which shall be deemed as lawful delivery. If the enforcement documents fail to be actually received by the person to whom they are intended due to an inaccurate delivery address provided by that person, or because a change in the delivery address was not notified in writing to the market supervision and administration department, then in the case of direct delivery, the date on which the enforcement documents are left at that address shall be deemed the date of delivery ； In the case of delivery by mail, the date on which the enforcement document is returned is the date of service. Chapter 7 Supplementary Provisions Article 84 In these provisions, the terms “above,” “below,” and “within” all include the stated number itself. Article 85 These Provisions shall apply to the administrative penalties imposed by the drug regulatory department of the State Council and provincial drug regulatory departments. These provisions apply to the organization that is authorized by laws and regulations to perform market supervision and management functions and to impose administrative penalties. The procedures for imposing administrative penalties on acts that violate the Anti-Monopoly Law of the People’s Republic of China shall be carried out in accordance with the specific regulations issued by the market supervision and administration department of the State Council. Where special provisions do not specify otherwise, these provisions shall apply by reference. Article 86: The standard format for administrative penalty documents shall be uniformly established by the market supervision and administration department of the State Council. Provincial market supervision and administration departments may refer to the model document formats to establish document formats for administrative penalties applicable within their respective jurisdictions, and print them on their own. Article 87 These provisions shall come into force as of April 1, 2019. The \"Measures for the Implementation of Delegation of Administrative Penalties in Technical Supervision\" issued by the former **Technical Supervision Bureau under Order No. 45 on September 18, 1996, the \"Measures for the Management and Disposal of Seized and Confiscated Items in Quality and Technical Supervision\" issued by the former **Quality and Technical Supervision Bureau under Order No. 16 on April 9, 2001, the \"Provisions on the Procedures for Administrative Penalties by Administrative Industry and Commerce Agencies\" issued by the former **General Administration for Industry and Commerce under Order No. 28 on September 4, 2007, the \"Provisions on the Procedures for Administrative Penalties in Quality and Technical Supervision\" issued by the former **General Administration of Quality Supervision, Inspection and Quarantine under Order No. 137 on March 2, 2011, the \"Provisions on the Trial of Cases Involving Administrative Penalties in Quality and Technical Supervision\" issued by the same authority under Order No. 138 on March 2, 2011, and the \"Provisions on the Procedures for Administrative Penalties in Food and Drug Administration\" issued by the former **General Administration for Food and Drug Supervision under Order No. 3 on April 28, 2014, are all repealed simultaneously. Measures for Hearings on Administrative Penalties in Market Supervision and Administration (Issued on December 21, 2018, by Order No. 3 of the State Administration for Market Regulation; amended in accordance with Order No. 42 of the State Administration for Market Regulation dated July 2, 2021, titled “Decision of the State Administration for Market Regulation on Amending Two Regulatory Provisions, Including the Interim Provisions on Procedures for Administrative Penalties in Market Supervision and Administration”) Chapter I General Provisions Article 1 These measures are formulated in order to standardize the procedures for hearings on administrative penalties in market supervision and administration, ensure that market supervision and administration departments impose administrative penalties in accordance with the law, and protect the legitimate rights and interests of natural persons, legal persons, and other organizations, in line with the relevant provisions of the Administrative Penalty Law of the People’s Republic of China. Article 2 These Provisions shall apply to administrative penalty hearings organized by market supervision and administration departments. Article 3: When organizing administrative penalty hearings, the market supervision and administration authorities shall adhere to the principles of openness, fairness, and efficiency, and ensure and facilitate the parties’ right to make statements and present defenses in accordance with the law. Article 4: The market supervision and administration department shall implement a recusal system for hearings in administrative penalty cases. The hearing chairperson, hearing officers, recordkeepers, and interpreters who have a direct interest in the case or other relationships that may affect impartial enforcement shall recuse themselves. The recusal of hearing officers, recorders, and interpreters shall be decided by the hearing chairperson ； The recusal of the hearing moderator is decided by the head of the market supervision and administration department. Chapter 2 Application and Acceptance Article 5 Where the market supervision and administration department intends to impose any of the following administrative penalty decisions, it shall inform the party concerned of their right to request a hearing: (1) Ordering suspension of production or business operations, ordering closure, or imposing restrictions on engaging in certain activities ； (2) Downgrading of qualification level, revocation of licenses or business licenses ； (III) Impose a fine of not less than 10,000 yuan on natural persons, and not less than 100,000 yuan on legal persons or other organizations ； (IV) Administrative penalties in the form of confiscation of the illegal gains and illegal property held by natural persons, legal entities, or other organizations, where the total value of such items reaches the amount specified in item (III) ； (5) Other relatively severe administrative penalties ； (6) Other circumstances stipulated by laws, regulations, and rules. Where the people’s congresses or people’s committees of provinces, autonomous regions, and municipalities directly under the Central Government have made specific provisions regarding the amounts of fines and confiscations stipulated in items 3 and 4 of the preceding paragraph, such provisions shall apply. Article 6: When informing the party of their right to a hearing, the party shall be notified in writing of the content of the administrative penalty proposed, as well as the facts, reasons, and legal basis for it. Article 7: Where a party requests a hearing, it may state its opinions on the receipt acknowledgment of the notice, or submit such requests within five working days from the date of receiving the notice. If the parties make their statements orally, the case handlers shall record the details in the minutes, and the parties shall sign or affix their seals to the minutes. If the party does not request a hearing within five working days from the date of delivery of the notice, it shall be deemed that they have waived this right. Where a party requests a hearing within the prescribed time limit, the market regulation authority shall organize a hearing in accordance with the provisions of these Measures. Chapter 3 Hearing Organizations, Hearing Officers, and Participants in Hearings Article 8 Hearings shall be organized by the legal affairs department of the market supervision and administration agency or other relevant agencies. Article 9 The hearing officers include the hearing chairperson, hearing members, and the recorder. Article 10: Participants in a hearing include the parties and their agents, third parties, case handlers, witnesses, interpreters, expert witnesses, and other relevant persons. Article 11 The chairperson of the hearing shall be designated by the person in charge of the market supervision and administration department. If necessary, one or two hearing officers can be appointed to assist the hearing chairperson in conducting the hearing. The recorder is appointed by the hearing chairperson and is specifically responsible for preparing for the hearing and recording it. Case handlers shall not serve as hearing chairpersons, hearing members, or recorders. Article 12 The hearing chairperson shall perform the following duties during the hearing procedure: (1) Decide on the time and place of the hearing ； (II) Examination of the eligibility of hearing participants ； (III) Preside over hearings ； (IV) Maintaining order at the hearing ； (5) Decide on the suspension or termination of the hearing, and announce the conclusion of the hearing ； (VI) Other duties assigned by these measures. The hearing chairperson shall perform their duties in presiding over the hearing in a public and fair manner, and shall not impede the parties or third parties from exercising their rights to make statements and defenses. Article 13 The natural persons, legal persons, or other organizations that request a hearing are the parties to the hearing. Article 14 Other natural persons, legal persons, or organizations that have an interest in the case under hearing may apply to participate in the hearing as third parties, or may be notified by the hearing officer to attend the hearing. Article 15: The parties and third parties may appoint one or two persons to attend the hearing on their behalf. When entrusting another person to attend a hearing on one’s behalf, it is necessary to submit to the market regulation authority a power of attorney signed or sealed by the principal, as well as identification documents of the authorized representative. The power of attorney shall specify the matters entrusted and the authority granted. For an authorized representative to withdraw the hearing application on behalf of the principal or explicitly waive the right to a hearing, explicit authorization from the principal is required. Article 16: Case handlers shall attend the hearing. Article 17 Witnesses, experts, etc. related to the case under hearing may attend the hearing on site with the consent of the hearing chairperson. Chapter 4 Preparation for the Hearing Article 18 The market supervision and administration department shall appoint a hearing chairperson within three working days from the date it receives the party’s application for a hearing. Article 19: The case handlers shall, within three working days from the date when the hearing chairperson is designated, transfer the case materials to the hearing chairperson, who shall then review those materials in order to prepare an outline for the hearing. Article 20 The hearing officer shall determine the time and place of the hearing within five working days from the date of receiving the case materials transferred by the case handlers, and shall serve a notice of the hearing on the parties seven working days prior to the holding of the hearing. The notice of the hearing shall specify the time and place of the hearing, as well as the names of the hearing officer, assessors, recorder, and interpreter, and inform the party of their right to request a recusal. If a third party attends the hearing, the hearing officer shall notify the third party of the time and place of the hearing seven working days prior to its holding. Article 21: The hearing officer shall notify the case handlers of the time and place of the hearing seven working days prior to its holding, and return the case documents. Article 22: Except where it involves **secrets, trade secrets, or personal privacy that must be kept confidential in accordance with the law, hearings shall be held publicly. In the case of a public hearing, the market supervision and administration department shall announce the name or title of the parties involved, the reason for the case, as well as the time and place of the hearing, three working days prior to its holding. Chapter 5 Conduct of Hearings Article 23 Before the hearing begins, the clerk shall verify whether the participants in the hearing are present and announce the following hearing rules to those present: (1) Obey the instructions of the hearing chairperson; no one shall speak or ask questions without the permission of the hearing chairperson ； (II) Recording, videographing, and photographing are prohibited without the permission of the hearing moderator ； (III) Participants in the hearing shall not leave the venue without the permission of the hearing moderator ； (IV) No loud talking is permitted, nor is clapping, making noise, or engaging in any other activities that disrupt the order of the hearing. Article 24 The hearing chairperson verifies the participants in the hearing, explains the reason for the hearing, announces the list of the hearing chairperson, hearing officers, recordkeepers, and interpreters, informs the participants of their rights and obligations during the hearing, and asks the parties whether they wish to file a request for recusal. Article 25 The hearing shall be conducted in accordance with the following procedures: (1) The case handlers shall present the facts of the party’s violation of the law, the evidence, the proposed administrative penalties, and the relevant basis ； (II) Statements and defenses by the parties and their authorized representatives ； (III) Statements by third parties and their authorized representatives ； (IV) Cross-examination ； (5) Debate ； (6) The hearing chairperson solicits the final opinions from all parties in the order of third parties, case handlers, and parties involved. The party may present evidence on the spot to support their claims, and the hearing officer shall accept it. Article 26: The hearing may be suspended under any of the following circumstances: (1) The party is unable to attend the hearing due to force majeure ； (II) When a party dies or ceases to exist, and it is necessary to determine the successor to the relevant rights and obligations ； (III) When a party files an application for recusal on an ad hoc basis, it is not possible to make a decision on the spot ； (IV) When it is necessary to notify new witnesses to appear or to conduct a re-evaluation ； (5) Other circumstances requiring the suspension of the hearing. Once the circumstances preventing the hearing from taking place are removed, the hearing officer shall resume the hearing. Article 27: A hearing may be terminated under any of the following circumstances: (1) The party withdraws the application for a hearing or explicitly relinquishes the right to a hearing ； (II) The party refuses to attend the hearing without proper reason ； (III) The party leaves the venue midway without the permission of the hearing officer ； (IV) The party dies or ceases to exist, and there is no successor to rights and obligations ； (5) Other circumstances requiring the termination of the hearing. Article 28 The recorder shall record truthfully and prepare transcripts of the hearing. The record of the hearing shall specify the time and place of the hearing, the reason for the hearing, the names of the hearing officers and participants, the opinions of all parties, and other matters that need to be recorded. After the hearing, the minutes of the hearing shall be checked by the participants in the hearing to ensure their accuracy, after which they shall sign or stamp them on the spot. If the party or third party refuses to sign or affix a seal, the hearing officer shall note this in the hearing record. Article 29: Upon the conclusion of the hearing, the hearing officer shall prepare a hearing report within five working days. The report shall be signed by the hearing officer and the hearing panel members, and together with the minutes of the hearing, it shall be submitted to the agency handling the case, which in turn shall forward it, along with other case-related documents, to the person in charge of the market supervision and administration department. The market supervision and administration department shall, based on the minutes of the hearing and taking into account the suggestions put forward in the hearing report, make a decision in accordance with the relevant provisions of the Provisions on the Procedures for Administrative Penalties in Market Supervision and Administration. Article 30 The hearing report shall include the following contents: (1) The reason for the hearing ； (II) Hearing officers, participants in the hearing ； (III) Time and place of the hearing ； (IV) Basic information on the hearing ； (5) Handling of suggestions and opinions ； (VI) Other matters that require reporting. Chapter 6 Supplementary Provisions Article 31 In these regulations, the terms “above” and “within” include the respective numbers themselves. Article 32 These Provisions shall apply to administrative penalty hearings organized by the drug regulatory department of the State Council and the drug regulatory departments at the provincial level. These measures shall apply to administrative penalty hearings held by organizations authorized by laws and regulations to perform market supervision and management functions. Article 33: The provisions regarding the service of enforcement documents in these measures shall be in accordance with the relevant regulations set out in the Provisions on the Procedures for Administrative Penalties by the Market Regulation Authorities. Article 34: The market supervision and administration department shall provide funding for hearings, as well as the premises, equipment, and other facilities necessary to organize them. The market supervision and administration department shall not charge fees to the parties when holding a hearing. Article 35 These Provisions shall come into force as of April 1, 2019. The \"Rules for Hearings by the **Food and Drug Administration (Trial Version)\\", issued by Order No. 23 of the former **Food and Drug Administration on December 30, 2005, and the \"Rules for Hearings in Administrative Penalty Cases by Industrial and Commercial Administration Agencies\", issued by Order No. 29 of the former **General Administration for Industry and Commerce on September 4, 2007, are both repealed simultaneously.