the Ministry of Commerce, the State Administration for Industry and Commerce Order of the Ministry of Commerce and the State Administration for Industry and Commerce No.22 The Measures for the Administration on the Depositing, Payment and Using of the Deposit of Direct Selling Companies, which were deliberated Bo Xilai, the Minister Wang Zhongfu, the Director General November 1st, 2005 Measures for the Administration of the Depositing, Payment and Using of the Deposit of Direct Selling Companies Article 1 The present Measures are formulated according to the provisions of paragraph 2 of Article 34 of the Regulations on Direct Selling Article 2 When applying for direct selling, a company shall submit its credence of the special deposit account opened by it at the designated Article 3 The following items shall be contained in the agreement on the special deposit account concluded by a direct selling company with 1. The designated bank shall pay the deposit in pursuance of the written decision of the Ministry of Commerce and the State Administration 2. The direct selling company shall not use the deposit without permission by violating the Regulations on Direct Selling Administration, 3. The designated bank shall report the conditions on the deposit account to the Ministry of Commerce and the SAIC in a timely manner, 4. The rights and obligations of the direct selling company and the designated bank and the ways of dispute resolution. The company, when applying for establishment, shall submit the agreement on opening the special deposit account signed by the designated Article 4 Three months after a direct selling company starts to undertake direct selling operation, the amount of the deposit shall be adjusted The amount of deposit of a direct selling company shall be kept at 15% of the sales income of its direct sales products of the last If it is necessity to increase the amount of deposit pursuant to the monthly sales amount of a direct selling company,, the direct Article 5 In case any of the following circumstances occurs, the Ministry of Commerce and the SAIC may jointly decide to use the deposit: 1. The direct selling company does not pay remuneration to the sales promoters without justifiable reasons, or can not pay the sales 2. The direct selling company is subject to such conditions as stopping business operation, merger, dissolution, transfer or bankruptcy, 3. In case any direct selling company causes damage to any consumer due to the quality of the direct selling product, it shall make compensation Article 6 In case any sales promoter or consumer require to use the deposit according to the Regulations on Direct Selling Administration and The sales promoter shall, besides the effective judgment and conciliation statement of a court, show his identity card, the certificate The Ministry of Commerce and the SAIC shall, within 60 days after receiving the application materials, make a decision on whether In case any sales promoter violates the relevant provisions of the Regulations on Prohibition of Pyramid Selling, his/her application Article 7 After the deposit is paid pursuant to the provisions of the present Measures, the direct selling company shall, within 30 days as Article 8 The use of the deposit by a direct selling company shall be disclosed to the public through the websites of the Ministry of Commerce Article 9 Where a direct selling company does not conduct direct selling operation any more, it may take back the deposit from the designated Where any company fails to get approval for its application for direct selling, it may go to the designated bank to go through formalities Article 10 In case any direct selling company violates the present Provisions, it shall be punished in accordance with Article 51 of the Regulations Article 11 The Ministry of Commerce and the SAIC shall be jointly responsible for the routine supervision and administration on the direct selling Article 12 The power to interpret the present Measures shall remain with the Ministry of Commerce and the SAIC. Article 13 The present Measures shall go into effect as of December 1st, 2005. |
the Ministry of Commerce, the State Administration for Industry and Commerce
2005-11-01