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Article 74: Those who, in violation of the provisions of this Law, engage in the production of special equipment without permission shall be ordered to cease such production, the illegally manufactured special equipment shall be confiscated, and they shall be fined not less than 100,000 yuan but not more than 500,000 yuan； If there are illegal gains, such gains shall be confiscated ； In cases where installation, modification, or repair has already been carried out, the parties concerned shall be ordered to restore the original state, or be given a time limit to have the work redone by a unit possessing the necessary permits. The entity responsible for the accident shall implement corrective measures in accordance with the law to prevent similar accidents from occurring. If an accident causes damage, the entity responsible for the accident shall bear the liability for compensation in accordance with the law. Interpretation of the provision: This article deals with the legal responsibilities for engaging in the production of special equipment without permission. Special equipment generally operates under conditions of high temperature, high pressure, high altitude, and high speed, posing significant risks. Therefore, to protect the lives and property of the people, Article 18 of this Law stipulates that **a licensing system shall be implemented for the production of special equipment in accordance with the principle of classified supervision and management. The special equipment production licensing system is an important market access mechanism; units responsible for the design, manufacturing, installation, modification, and repair of special equipment must meet certain criteria and obtain the corresponding production licenses before they can engage in such activities. During the legislative process of the Special Equipment Safety Law, the \"Plan for the Reform of State Council Agencies and the Transformation of Their Functions\" was being implemented in phases. Taking into account the needs of future reforms to the administrative approval system, the law established flexible provisions regarding the licensing system for special equipment production; it did not specify which exact stages of the production process required licensing, thereby leaving room for further reforms in the future. At present, in China, in accordance with the principle of classified supervision, special equipment is supervised based on the characteristics of different types of equipment and products, as well as their degree of risk and complexity, along with considerations related to their design, manufacturing, installation, and modification. Given the various characteristics of the production activities of repair units, etc., a comprehensive production licensing system for special equipment should be established and implemented. In the design phase, China implements a licensing system for design entities of pressure vessels and pressure pipelines. In the manufacturing sector, China implements a licensing system for manufacturers of boilers, pressure vessels, pressure pipeline components, elevators, lifting machinery, passenger ropeways, large-scale amusement rides, and special motor vehicles used within premises (factories). Provisions have also been made for installation, modification, and repair. Clear provisions have been made regarding licensing conditions, licensing procedures, licensing authorities, and hierarchical structures. I. Illegal acts for which legal liability shall be assumed: Violating the provisions of this Law by engaging, without permission, in the design, manufacture, installation, modification, or repair of special equipment that requires permission under law (including safety accessories for special equipment, safety protection devices, major components, and pressure pipeline elements) constitutes the illegal act specified in this article, and the corresponding legal liability shall be borne as provided herein. The entities that violate the provisions of this article are the units engaged in the illegal production of special equipment. Since the production of special equipment involves various stages such as design, manufacturing, installation, modification, and repair, the specific violations of this provision are quite complex. Firstly, illegal acts can exist independently at a certain stage of the production process, or they can exist simultaneously at multiple stages of the process or even throughout the entire process. For example, a pressure vessel designed by a licensed design firm and manufactured by a licensed manufacturing firm, but installed by an unlicensed installation company, constitutes a violation of these provisions at the installation stage ； If the units responsible for the design, manufacturing, installation, modification, and repair of pressure vessels do not hold the necessary permits, it constitutes a violation of these provisions during the production process. Second, by the time illegal activities are discovered, the production process may already be complete, with the products delivered or even put into use ； It is also possible that production activities are already in progress; or even if production has not officially begun, the illegal production unit may have already signed production contracts with customers or taken on related projects. Third, the illegal entity may neither possess the production conditions specified in Article 18 of this Law nor have obtained permission from the department responsible for the supervision and management of safety in special equipment ； It is also possible that the objective production conditions stipulated in Article 18 of this Law are met, but no production license has been obtained in accordance with the law. It should be noted that those who have, in accordance with the provisions of this Law, submitted an application for a production permit to the department responsible for the safety supervision and management of special equipment, and whose applications have been accepted and approved for trial production in compliance with the requirements of safety technical specifications, also fall under the category of having obtained certain permits. Such cases do not constitute “engaging in the production of special equipment without permission” as stipulated in this article. II. Forms of liability In accordance with the provisions of this article, those who engage in the production of special equipment without permission shall bear the following legal responsibilities: 1. Being ordered to cease production. If law enforcement authorities discover that a person is engaged in the production of special equipment without permission, in violation of Article 18 of this Law, they shall immediately issue an order requiring such person to cease such illegal activities, so as to prevent them from continuing with the design, manufacture, installation, modification, or repair of special equipment. 2. Confiscate special equipment manufactured illegally. In cases where unauthorized parties engage in the manufacture of special equipment and have already produced finished or semi-finished products, law enforcement authorities must immediately confiscate such illegally manufactured equipment to prevent it from entering the market and being put into use, thereby safeguarding the lives and property of the general public. Items subject to confiscation include special equipment and its materials, main components, safety accessories, and safety protection devices, etc. 3. Fines. Where law enforcement authorities discover that a perpetrator engages in the production of special equipment without permission, they shall also impose a fine ranging from 100,000 to 500,000 yuan, depending on the circumstances of the violation and the degree of harm caused. 4. Confiscate the illegal gains. If the offender has illegal gains, such gains shall be confiscated. The illegal gains referred to here mean all the income generated from the illegal production of special equipment, such as design fees obtained from illegal design work, and installation fees earned from illegal installation activities. 5. Order to restore the original condition or to reinstall, renovate, or repair it within a specified time limit. For special equipment that has been designed or manufactured in violation of regulations and for which installation, modification, or repair has already been carried out, or for special equipment that was designed and manufactured legally but for which such installation, modification, or repair was carried out illegally by unlicensed units, orders shall be issued to restore it to its original state prior to the installation, modification, or repair, or to have it reinstalled, modified, or repaired within a specified time frame by a licensed unit. When imposing a penalty, whether to order restoration to the original state or to order reinstallation, renovation, or repair within a specified time depends on the circumstances. If it is special equipment that has been designed and manufactured without permission, orders shall be issued to restore it to its original state, with further appropriate actions taken in accordance with the law ； If it is a special equipment that has been legally designed and manufactured, and unauthorized entities carry out its installation, modification, or repair, they may be ordered to have it reinstalled, modified, or repaired by a licensed entity within a specified time frame. It is worth noting that this penalty is parallel to the previous penalty, and both should be applied simultaneously when the applicable conditions are met.