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18 Rule of Law Measures to Reduce Institutional Transaction Costs for Market Entities and Minimize the Quantity of Proof Materials

2023-05-23   

In order to further protect and stimulate the vitality of market entities, the Guangdong Provincial Party Committee's Office of Rule of Law recently issued the "Guiding Opinions on Continuously Optimizing the Legalized Business Environment and Reducing the Institutional Transaction Costs of Market Entities", proposing 18 specific measures from five aspects: accelerating the transformation of government functions and improving the business environment system. Among them, it is proposed to strictly control the penalties for licensing new enterprises, strictly prohibit the establishment of administrative licensing matters in the market field in any form, and prohibit the arbitrary setting of punishment measures such as lowering qualification levels or revoking licenses for market entities and corresponding responsible persons. At the same time, it is necessary to strictly control the newly established fee items in the market field in accordance with the law, and adjust and publish a list of administrative and institutional fees related to enterprises, government funds, and government fixed operating service fees according to the situation. In terms of improving the business environment system, it is necessary to strengthen legislation in the field of market economy, establish and improve systems for severe illegal punitive damages and huge fines, lifelong prohibition, and credit punishment. In terms of accelerating the transformation of government functions, in response to the problem that some enterprises need to spend a lot of costs to issue various certificates, we need to rely on platforms such as "Guangdong Commercial Communication" and "Credit Guangdong" to leverage the substitute certification role of credit reports and commitment letters, deeply promote the notification and commitment system for enterprise business license matters, minimize the number of certification materials, and reduce the burden of compliance certification issued by market entities. In terms of improving the decision-making mechanism for enterprises, it is necessary to enhance the scientific nature of enterprise decision-making. For policies that may increase enterprise costs and affect the normal production and operation of enterprises, buffer measures such as transition periods should be scientifically set up to leave necessary response time for enterprises. Various departments in various regions shall strictly implement legal procedures such as evaluation and argumentation, public solicitation of opinions, and legality review when formulating policies related to enterprises. They shall not illegally derogate from the legitimate rights and interests of market entities or add obligations to market entities, and shall not interfere with the autonomy of market entities in their operations. Regarding the role of effective government and effective market, the guidance calls for optimizing administrative supervision of enterprises, promoting inclusive and prudent law enforcement supervision and integrity supervision, promoting cross departmental comprehensive supervision, and flexibly adopting commitment based supervision methods such as self inspection and self correction, reflecting humanization and flexibility. The guidance also requires preventing administrative inspections from disturbing enterprises, improving the "comprehensive inspection once" list system for enterprises, prudently adopting law enforcement measures such as production and business suspension, and restricting production and business activities, to prevent improper interference in the normal activities of enterprises. In addition, it is necessary to improve the digital government service system and promote the integration and development of digital government and rule of law government. For example, we need to use the provincial integrated administrative law enforcement platform and the "Guangdong Commerce Connect" to implement off-site law enforcement, accelerate the construction of a unified electronic certificate library, encourage the provision of "one answer" and "one-stop" policy consulting services for enterprises and the public, and accurately push various preferential policy information to enterprises. At the same time, various regions can rely on "Guangdong Fairness" to promote cross regional compatibility and mutual recognition of CA digital certificates in the bidding field, promote the payment of bid security through electronic guarantee letters (insurance), and reduce transaction costs for enterprises. (New News Agency)

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