Home China Laws 2006 PRODUCT QUALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (AMENDMENT)

PRODUCT QUALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (AMENDMENT)

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 33

The Decisions of the Standing Committee of the National People’s Congress on Amending the Product Quality Law of the People’s Republic
of China adopted at the 16th meeting of the Standing Committee of the National People’s Congress on July 8, 2000, are hereby promulgated
and shall come into force as of the day of September 1, 2000.

President of the People’s Republic of China, Jiang Zemin

July 8, 2000

Product Quality Law of the People’s Republic of China (Amendment) Contents

Chapter I General Principles

Chapter II Supervision and Control of Product Quality

Chapter III Responsibilities and Obligations of Producers and Sellers

Chapter IV Compensation for Damage

Chapter V Penalty Provisions

Chapter VI Supplementary Provisions

Chapter I General Principles

Article 1

The law has been formulated with a view to reinforcing the supervision and regulation of product quality, improving the quality of
products, clarifying the liabilities for product quality, protecting the legitimate rights and interests of consumers and safeguarding
the social and economic order.

Article 2

The law applies to all production and marketing activities within the territory of the People’s Republic of China.

Products mentioned in the law are referred to products processed and manufactured for the purpose of marketing.

This law is not applicable to construction projects. However, the construction materials, structural components and fittings and equipment
that fall within the category as provided in the previous paragraph shall be governed by this law.

Article 3

Producers and sellers shall have their own proper regulations for the management of product quality, rigorously implementing post-oriented
quality regulations, quality liabilities and relevant measures for their assessment.

Article 4

Producers and sellers are responsible for the product quality according to the provisions of the law.

Article 5

It is forbidden to forge or infringe upon quality marks such as certification marks and marks for fine quality products; it is forbidden
to forge the place of origin, forge or infringe upon the factory names, factory addresses; it is forbidden to produce or market adulterated
products or to use fake goods as genuine or sub-standard products as standard.

Article 6

The State encourages the use of scientific quality control methods and adoption of advanced science and technology by enterprises
to make their products surpass the standards set by the various trades, the State standards and even international standards in their
product quality and awards units and individuals who have made outstanding achievements in quality control and in bringing the product
quality up to the advanced international levels.

Article 7

The people’s government at all levels shall ensure the implementation of this law by incorporating the improvement of product quality
into their plans for national economy and social development, reinforcing the integrated planning and organization regarding product
quality, guiding, supervising and urging the producers and sellers to reinforce the management of product quality and improve the
quality of products, organizing relevant departments to lawfully taking measures for stopping those acts that violate this law in
the process of product production and product selling.

Article 8

The product quality supervision and administration departments of the State Council are responsible for the supervision and administration
of the quality of products of the whole country. All relevant departments of the State Council shall be responsible for the supervision
of product quality within their own functions and duties.

Local administrations for the supervision of product quality at and above the county level are responsible for the supervision of
product quality within their own administrative jurisdictions. The relevant departments of the local people’s governments at and
above the county level are responsible for the product quality within their respective functions and duties.

If there are different provisions concerning the supervision departments of product quality, such provisions shall be applied.

Article 9

The staff members of the people’s governments at all levels and other state organs may not abuse their power, neglect their duties
or misconduct to seek private interests, cover up or give loose to the acts violating this law that occurs within the locality or
within the industry, hinder or meddle with the investigation of acts violating this law that occurred in the process of the producing
or selling products.

Where any of the local people’s governments or other state organs covers up or give loose to the violations of this law that occurred
in the production or selling of products, the person who is held to be mainly responsible shall take legal liabilities.

Article 10

Any entity or individual is enpost_titled to report to the product quality supervision administrations or other relevant departments about
any of the acts violating this law.

The product quality supervision department and relevant departments shall hold all information about the reporter as confidential
and give awards to the reporter in accordance with the provisions of the province, autonomous region or municipality directly under
the Central Government.

Article 11

No entity or individual may prevent any of the qualified products produced outside of the region or trade from entering the region
or trade.

Chapter II Supervision and Control of Product Quality

Article 12

Quality of products shall pass standard examinations and no sub-standard products shall be used as standard ones.

Article 13

Industrial products which may be hazardous to the health of the people and the safety of lives and property shall conform to the State
and trade standards for ensuring the health of the human body and safety of lives and property. In absence of such State or trade
standards, the products shall conform to the minimum requirements for ensuring the health of the human body and the safety of lives
and property.

It shall be prohibited to produce or sell industrial products that do not come to the requirements and demands for physical health
and safety of body and property. The specific measures for management will be enacted by the State Council.

Article 14

The State shall institute the system for certifying quality control system of enterprises according to the quality control standards
commonly accepted internationally. Enterprises may apply voluntarily for certification of their quality control systems with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for the quality control systems.

The State shall institute the system for certifying the product quality in reference to the internationally advanced product quality
standards and technical requirements. Enterprises may apply voluntarily for certification of the quality of their products with the
product quality supervision and control departments under the State Council or quality certification organizations recognized by
the departments authorized by the quality supervision and control departments under the State Council. The qualified enterprises
shall be issued with the certificates for product quality and are allowed to use quality certification marks on the products or on
the packages of their products.

Article 15

An supervision and inspection system based on random inspection is implemented by the state to test those products that may injure
physical health or the safety of body or property, those important industrial products that have a great bearing on the national
economy and those products that have been reported by consumers or relevant organizations as to be defective in quality. The samples
shall be randomly taken from the market or the products stored in the warehouse of the enterprise for sale. The supervision and inspection
shall be planned and organized by the product quality supervision administrations of the State Council. The local administrations
for product quality supervision on and above the county level may organize and supervise sample tests. Where there are different
provisions concerning the supervision and inspection, such provisions shall be applied.

The products supervised and inspected by the state administrations shall be not re-supervised and reinspected by the local administrations;
the products supervised and inspected by the administration on a higher level shall be not reinspected by that on a lower level.

Products may be tested according to the demand of supervision and random inspection. The quantity of samples for random sample test
shall not be bigger than that is reasonably needed, and no fees may be collected from the person under supervision and inspection.
The expenses for supervision and random inspection shall be covered in according to the provisions of the State Council.

Where the producer or seller refuses to accept the results of sample test, he may apply to the product quality supervision departments
on the higher level within 15 days from the day he receives the results for reexamination. The reexamination conclusion shall be
made by the product quality department that does the reexamination.

Article 16

No producer or seller may reject any supervision or inspection of product quality that is lawfully carried out.

Article 17

Where any product is found to be unqualified by any supervision and inspection that is carried out according to this law, the producer
or seller shall be ordered to make corrections within the time limit by the product quality supervision administration that carries
out the supervision and inspection. Where the producer or seller fails to make corrections within the time limit, he shall be publicized
by the product quality supervision administration of the people’s government on or above the provincial level; if the product quality
is still not qualified after reexamination, the producer or seller shall be ordered to suspend business for rectifications within
the time limit; if the product quality is still proved unqualified by reexamination after the period for rectifications, the business
license of the producer or seller shall be canceled.

If the products are proved to be seriously unqualified by sample test, penalty be given according to the provisions of Chapter Five
of this law.

Article 18

Product quality supervision administrations at and above the county level may exercise, when investigating acts violating this law
according to the evidence acquired concerning the act suspected of violating the law or according to reports, the following powers:

(1)

Conduct on-spot inspection over the site where the parties concerned are suspected of committing production or sale activities as
against the provisions of this law;

(2)

Inquire the legal representative, main leaders and other relevant personnel about information relevant to the suspected activities
of production and sale violating this law;

(3)

Read and copy contracts, invoices, account books and other materials connected with the parties concerned;

(4)

Close down or detain any product that they have good reason to deem as not meeting the national standards or trade standards for ensuring
physical health and the safety of body and property, any products that have other serious defects and raw subsidiary materials, wrappings,
tools directly used for production or sale of products.

The administrations at and above the county level may, when investigating activities suspected of violating this law within the functions
as stipulated by the State Council, exercise the powers as mentioned in the previous paragraph.

Article 19

Product quality testing organizations shall have the corresponding testing facilities and capabilities and shall conduct product quality
testing only after the examination and approval of the quality supervision and control departments under the people’s governments
at and above the provincial level or of the organizations they have authorized. If there are separate provisions by other laws or
administrative decrees, the relevant laws or administrative decrees shall apply.

Article 20

Social intermediary institutions engaging in the test and certification of product quality shall be established in conformity with
the law and shall not be subordinate to or have any other interest with any administrative organs or state organs.

Article 21

Product quality testing and certification institutions shall make objective and fair conclusions or certifications in accordance with
the law and relevant criteria.

Product quality certification institutions shall, in accordance with the provisions of the state, make track-up tests about the products
that have been allowed to use certification marks. If any product fails to meet the certification requirements, the institutions
shall order the producers or sellers to make mend up; if the circumstances are serious, the institutions shall repeal the qualifications
for using certification marks

Article 22

Consumers have the right to inquire about the quality problems of products with producers or sellers of the products, to complain
about product quality to the product quality supervision administrations or the administrations for industry and commerce or other
relevant departments. The relevant departments accepting complaints shall be responsible for handling the matters.

Article 23

Social organizations for protecting the rights and interests of consumers may propose to relevant departments to handle matters concerning
the complaints by consumers about product quality and give aid to consumers to sue producers whose products have caused damages.

Article 24

The product quality supervision administrations under the State Council and the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government shall publicize regularly the quality situation of the products
that they have tested on the random basis.

Article 25

Product quality supervision administrations and other state organs as well as product quality testing institutions may not make recommendations
of the producers’ products, nor may they engage in the product management by means of supervising the production or sale of products.

Chapter III Responsibilities and Obligations of Producers and Sellers

Section 1 Responsibilities and Obligations of Producers for the Quality of Products

Article 26

Producers shall be responsible for the quality of products they produce.

Quality of products shall meet the following requirements:

(1)

Products shall be free from any irrational dangers threatening the safety of people and property. If there are State standards or
trade standards for ensuring the health of the human body and safety of lives and property, the products shall conform to such standards.

(2)

Products shall have the property they are due to have, except cases in which there are explanations about the defects of the property
of the products.

(3)

Products shall tally with the standards prescribed or specified on the packages and with the quality specified in the instructions
for use or shown in the providing samples.

Article 27

The marks on the products or the package of products shall be true to the fact and satisfy the following requirements:

(1)

Including a certificate of quality inspection;

(2)

Including the name of product and the name and addresses of producer in the Chinese language;

(3)

If, according to the characteristics and requirements for use, the specification, grades or the names and contents of the major ingredients
are required to be specified, they shall be specified clearly in Chinese; if it is required to inform consumers in advance, it shall
be marked on the outer package or relevant materials shall be provided to consumers in advance;

(4)

Products which have a time limit for use, the date of production or the period for safe use or the date of losing effect shall be
specified clearly in a conspicuous position of the product;

(5)

Products which may cause harm to the human body or injure the safety of body and property due to improper use shall carry warning
marks or warnings written in Chinese.

Unpacked food or other products which are hard to be packed according to the characteristics of products may not have marks attached.

Article 28

For products which are easily broken, inflammable, explosive, toxic, erosive or radioactive and products that cannot be handled upside
down in the process of storage or transportation or for which there are other special requirements, the package thereof shall meet
the corresponding requirements, carry warning marks or warnings written in Chinese or points of attention in handling in accordance
with the relevant provisions of the state.

Article 29

Producers are forbidden to produce products eliminated according to State laws or decrees.

Article 30

Producers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 31

Producers are not allowed to fake or use the quality marks such as certification marks and fine quality product marks.

Article 32

Producers shall not adulterate their products or pose fake products as genuine or shoddy products as good or non-standard products
as standard.

Section 2 Responsibilities and Obligations of Sellers for the Quality of Products

Article 33

Sellers shall implement the system of examination and acceptance of goods procured, verifying the product quality certificates and
other marks.

Article 34

Sellers shall adopt measures to maintain the quality of products for sale.

Article 35

Sellers may not sell any product that has been put into disuse by order of the state and therefore the sale of which has been prohibited
or those that have lost effect or have deteriorated.

Article 36

The marks of products for sale by sellers shall conform to the provisions of Article 15 of this law.

Article 37

Sellers are not allowed to fake the place of origin or fake or use the names and addresses of other producers.

Article 38

Sellers are not allowed to fake or use quality marks such as certification marks and fine quality marks.

Article 39

Sellers are not allowed to adulterate the products for sale or pose fake ones as genuine or shoddy ones as good or sub-standard ones
as standard.

Chapter IV Compensation for Damage

Article 40

Sellers shall be responsible for repair, replacement or return and compensate for the damages done to end-users or consumers if one
of the following cases occurs:

(1)

Products do not have the property for use it should have and there is no advance explanations;

(2)

The quality of products does not conform to the standards or to the standards specified in the packages;

(3)

The quality of products does not tally with the quality specified in the instruction for use or with the quality of samples provided.

After the sellers undertake the repairs, replacement, return or compensation for damages according to the provisions of the preceding
paragraph, the sellers have the right to recover the losses from producers or suppliers if the responsibility rests with the producers
or other marketers that provide the products.

If the sellers fail to perform the duty of repairing, replacing, returning or compensating for damages as provided in the first paragraph
of this articles, the quality supervision and control departments or administrations for industry and commerce shall order them to
correct.

If there are relevant provisions in the contracts for marketing or processing between producers, marketers or between producers and
marketers, the parties to the contracts shall implement the provisions of the contracts.

Article 41

Producers shall be responsible for compensating for damages done to the person or property except the defective products themselves
(hereinafter referred to as “property of others”) due to the defects of products.

Producers shall not be held responsible if they can prove one of the following cases:

(1)

The products have not been put into circulation;

(2)

The defects are non-existent when the products are put into circulation;

(3)

The defects cannot be found at the time of circulation due to scientific and technological reasons.

Article 42

Sellers shall be responsible for compensation if the damages caused to the property of others are caused by defects resulting from
the fault on the part of sellers.

Sellers shall be responsible if they cannot identify the producers or suppliers of the defective products.

Article 43

If damages are done to the person or properties of others due to the defects of products, the victims may claim for compensation either
from the producers or sellers. If the responsibility rests with the producers and the compensation is paid by the sellers, the sellers
have the right to recover their losses from the producers. If the responsibility rests with the sellers and the compensation is paid
by the producers, the producers have the right to recover their losses.

Article 44

If bodily injury is caused by the defect of products, the party responsible shall pay for medical expenses and nursing expenses during
medical treatment, the lost income due to absence from work; if the bodily injury has resulted in disability, the party responsible
shall also be responsible for the expenses for self-supporting equipment, living allowances, compensation of the disabled person
and the living expenses necessary for those under the support of the disabled person; if death has resulted, the party responsible
shall pay for the funeral expenses, compensation and the living expenses necessary for those supported by the dead.

If the defect of product causes losses in property of the victims, the party shall be responsible for restoring or compensating for
it. If the victims sustain other major losses, the party responsible shall compensate for the losses.

Article 45

The validity period for claiming for compensation for damages due to defects of products is two years, starting from the date when
the parties concerned is notified or should have known the matter.

The right of request for compensation claim for damages done due to defects of products shall lose effect after the tenth year after
the products shall lose effect after the tenth year after the products with defects that cause damages was first delivered to the
users or consumers. However, cases in which the specified safe use period has not been exceeded are exceptions.

Article 46

Defects mentioned in the law are referred to the irrational dangers existing in the products that threaten the safety of person or
properties or products that do not conform to the standards set by the State or the specific trade if there is any.

Article 47

If civil disputes occur from product quality, the parties concerned may settle their disputes through consultation or mediation. If
any party concerned refuses to settle the disputes through consultation or mediation or consultation and mediation fail to settle
the disputes, parties concerned may, according to their agreement, apply for arbitration with arbitration organizations. If the parties
concerned fail to reach agreement on arbitration or if the arbitration becomes void, the cases may be brought before the people’s
courts.

Article 48

Arbitration organizations or the people’s courts may entrust the product quality supervision and control organizations provided for
in Article 11 of this law to test the quality of products concerned.

Chapter V Penalty Provisions

Article 49

An enterprise producing products that do not conform to the state standard or the specific trade standard for ensuring physical health
and the safety of human body and property shall be ordered to stop production and sale; the products illegally produced and sold
shall be confiscated; a fine less than three times the value of the products illegally produced or sold shall be imposed upon the
producer or seller; where there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business
license shall be revoked. If the case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 50

If a producer or a seller is found adulterating their products or posing fake ones as genuine, inferior ones as superior or sub-standard
ones as standard, it shall be ordered to stop production or selling; the products illegally produced or sold shall be confiscated
and a fine of more than 50% but less than three times the value of the products illegally produced or sold shall be imposed; where
there are illegal proceeds, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked;
if the case is serious enough to constitute a crime, criminal responsibilities shall be investigated.

Article 51

If an enterprise produces products clearly provided as being eliminated by the State, it shall be ordered to stop production and its
products and illegal proceeds shall be confiscated and a fine amounting to over one time and less than five times the total amount
of proceeds shall be imposed and, if necessary, the production license may be revoked.

Article 52

Any person selling products that have lost effect or deteriorated shall be ordered to stop the selling and the products for sale shall
be confiscated and be fined an amount of less than two times the value of the products for illegal sale; where any illegal proceeds
have occurred, such proceeds shall be confiscated; if the circumstances are serious, the business license shall be revoked. If the
case is serious enough to constitute a crime, criminal responsibility shall be investigated.

Article 53

If a producer or a seller is found to have fabricated the place of origin, fabricated or used without authorization the names and
addresses of other producers, fabricated or used without authorization quality marks such as certification marks, it shall be ordered
to make corrections and be fined an amount of not more than the total value of the products illegal produced or sold with the products
illegally produced or sold being confiscated; if any illegal proceeds have occurred, such proceeds shall be confiscated; if the circumstances
are serious, the business license shall be revoked.

Article 54

If the product marks of a producer do not conform to the provisions of Article 27 of this law, the producer shall be ordered to make
corrections; If the product marks on the packages of products do not conform to the provisions of Article 27 (4) (5) and the case
is serious enough, the producer or seller shall be ordered to stop the production or selling and be fined an amount of not more than
30% of the value of the products illegally produced or sold; if any illegal proceeds have occurred, such shall be confiscated.

Article 55

If the seller that sells the products which are prohibited from selling as provided in articles 49 to 53 of this law have sufficient
evidence to prove that he does not know that the products had been prohibited from selling and truthfully reveals the source of products,
he may be punished in a lenient way or be given a lesser punishment.

Article 56

Any person who rejects lawful product quality supervision and inspection shall be given a warning and be ordered to make corrections;
if he refuses to make corrections, he shall be ordered to suspend business for rectifications; if the circumstances are extremely
serious, the business license shall be revoked.

Article 57

Any product quality test institution or certification institution fabricates inspection results or issues false certificates shall
be ordered to make corrections, and a fine of not less than 50,000 Yuan but not more than 100,000 Yuan shall be imposed upon the
institution while a fine of not less than 10,000 Yuan but not more than 50,000 Yuan be imposed upon the person-in-charge who is held
to be directly responsible and other personnel who are held to be directly responsible; if any illegal proceeds have occurred, such
proceeds shall be confiscated; if the circumstances are serious, the institution shall be disqualified for inspection and certification;
if the case is so serious as to have constituted a crime, criminal liability shall be investigated.

Any product quality test institution or product quality certification institution that produces unreal results that has led to losses
shall be held responsible for making compensations; if the losses are great, they may be disqualified for testing and certification.

Where any product quality certification institution violates the provisions of article 21 (2) of this law by failing to demanding
those producers or sellers whose product does not come up to the requirements of certifications yet use certification marks on their
products to make corrections or failing to revoke their qualifications for using certification marks shall undertake joint and several
liabilities with the producers or sellers of the products; if the circumstances are serious, they shall be disqualified for certification.

Article 58

Where public organizations or public intermediary organizations makes promises or warranties concerning the quality of a product which,
however, does not meet the requirements for such promises or warranties and which causes losses to consumers, they shall take several
and joint liabilities with the producers and sellers.

Article 59

If the producer or seller falsely publicizes the quality of a product in advertisements so that consumers are cheated or mislead,
he shall take legal liabilities according to the Advertising Law of the People’s Republic of China.

Article 60

The subsidiary materials, packages, tools used by produced for producing those products as mentioned in articles 49 and 51 of this
law or for producing inferior products in the name of superior products shall be confiscated.

Article 61

If any one clearly knows or should have known that a product is prohibited from production and selling by this law but still facilitates
the transportation, safekeeping, storage, etc. or supplies the production technique for producing inferior products in the name of
superior ones, all the proceeds incurred from the transportation, safekeeping, storage or supply of production techniques for producing
inferior products in the name of superior ones shall be confiscated and be fined an amount of not less than 50% but not more than
3 times of the illegal proceeds; if the case is so serious as to have constituted a crime, criminal liabilities shall be investigated.

Article 62

Where any business operator of the services industry uses any of the products which are prohibited by articles 49 to 52 of this law
from selling into management services shall be ordered to stop using; if he clearly knows or should have known that the products
he is using is prohibited f