The State Administration of Market Regulation for Preventing Major Risks in Product Quality and Safety Announces Implementation Rules for Production Licenses of Six Products
2024-07-05
Core Reading: In response to the prominent quality and safety issues of important industrial products, the State Administration for Market Regulation recently announced the implementation rules for the production licenses of six products: cold-rolled ribbed steel bars, bottled liquefied petroleum gas regulators, steel wire ropes, plywood, blockboard, and safety helmets. The approval methods for fertilizer product production licenses have been adjusted, and specific measures have been proposed to control product quality and safety risks from the source. Product quality and safety are related to the safety of people's lives, property, and public safety. In order to ensure the quality and safety of important industrial products and prevent major risks in product quality and safety, the State Council recently issued the Decision on Adjusting and Improving the Catalogue of Industrial Product Production License Management (hereinafter referred to as the Decision). In response to the prominent quality and safety issues of important industrial products, the State Administration for Market Regulation recently announced the implementation rules for the production licenses of six products: cold-rolled ribbed steel bars, bottled liquefied petroleum gas pressure regulators, steel wire ropes, plywood, blockboard, and safety helmets. The approval methods for chemical fertilizer product production licenses have been adjusted, and specific measures have been proposed to control product quality and safety risks from the source. In recent years, the overall quality and safety level of products in China has remained stable, but the reliability of product quality in certain fields is not high, and some products still have quality shortcomings. For example, some steel wire ropes, cold-rolled ribbed steel bars, and other materials have weak durability, some artificial boards exceed harmful substances, some safety helmets are not safe, and some fertilizer companies make false promises, leading to unqualified products entering the market. In response to the prominent quality and safety issues of these products, the Decision proposes to implement industrial product production license management for six products: cold-rolled ribbed steel bars, bottled liquefied petroleum gas regulators, safety helmets, steel wire ropes, plywood, and blockboard. The approval method for fertilizer product production licenses will be adjusted from notification commitment to "approval before certification". In order to implement the Decision, the State Administration for Market Regulation recently issued a notice to refine the content of the State Council's adjustment and improvement of the Catalogue of Industrial Product Production License Management, with a total of 7 measures: clarifying a three-month transition period for the implementation of production license management for 6 types of products; It is stipulated that enterprises should apply for and apply for a product production license in accordance with the requirements of the relevant product implementation rules published. The approval authority shall conduct review and verification in accordance with the implementation rules, and strictly control the approval process of the production license; According to the Implementation Measures for the Management of Industrial Product Production Licenses, it is stipulated that certified enterprises shall complete the labeling of the production license logo and number on their products, packaging, and instructions within 6 months from the date of granting the production license; Fertilizer enterprises that apply for new production licenses or apply for extended production licenses will no longer implement notification commitments and exemption from on-site inspections; Clarify that the approval authority for industrial product production licenses cannot be delegated, and those that have been delegated must be promptly recalled; Require the implementation of "sunshine approval", improve approval efficiency, and accept social supervision; If it is found that the above six products produced and sold before the implementation of production license management are unqualified, measures such as recall and removal from shelves should be taken in accordance with the law for disposal. According to Duan Yongsheng, Director of the Quality Supervision Department of the State Administration for Market Regulation, the implementation of production license management for these six industrial products is mainly to prevent bad currency from driving out good currency. Since 2017, after China abolished the management of production licenses for these six products, there has been a significant increase in production enterprises. Some illegal enterprises have cut corners, and some low-priced and low-quality products that do not meet national standards have entered the market, posing safety hazards. At the same time, strengthen the governance of production sources and reduce the rate of product nonconformities. In recent years, the failure rate of spot checks on six products has been relatively high. From 2021 to 2023, the average failure rate of supervision and spot checks on cold-rolled ribbed steel bars, bottled liquefied petroleum gas pressure regulators, steel wire ropes, plywood, blockboard, and safety helmet products was over 10%. The approval authority cannot be delegated. Currently, products subject to industrial product production license management are all approved by the provincial industrial product production license authority. However, some local governments have delegated the approval authority, resulting in insufficient professional and technical capabilities of grassroots approval departments and lax approval control, which poses certain risks to product quality and safety. Therefore, the Decision clearly states that the approval of industrial product production licenses shall be carried out by the provincial department in charge of industrial product production licenses, and the relevant approval authority shall not be delegated. In response, the State Administration for Market Regulation has actively taken multiple measures to guide local authorities in strengthening approval management. Specifically, it includes preparing for license acceptance. Guide all regions to improve the electronic approval system for production licenses in their respective jurisdictions as soon as possible, including six products such as cold-rolled ribbed steel bars in the approval system, adjust the electronic approval process for fertilizer product production licenses, and supplement the formulation of approval procedures, permit documents, and relevant regulations. Assign verification personnel to ensure that relevant acceptance and approval work is carried out in accordance with the time requirements specified in the State Council's Decision. Strictly implement approval management regulations. Guide provincial market supervision departments to conduct on-site inspections of enterprise production conditions, production process control, implementation of quality and safety main responsibilities, and quality and safety traceability capabilities in strict accordance with the requirements of the implementation rules. Certificates can only be issued after passing the inspections. For products related to industrial policies, guide local authorities to strictly review industrial policy documents such as project filing and approval. For places where approval authority is delegated, supervise the implementation of the requirements of the State Council's Decision and retrieve the delegated approval authority as soon as possible. Strengthen post certification supervision for certified enterprises. After the implementation of the Decision, the State Administration for Market Regulation will guide the national market supervision departments to increase the supervision of certified enterprises after certification, and urge enterprises to continue to maintain the conditions and ability to produce qualified products. We will comprehensively use administrative coercion, administrative penalties, joint punishment, and transfer to judicial authorities for handling illegal and irregular enterprises suspected of unlicensed production, counterfeit and inferior products, and substandard products, in accordance with the law, to effectively ensure the quality and safety of important industrial products. At present, the State Administration for Market Regulation has completed the preparation of the implementation rules for six types of product production licenses and has issued them for implementation in the form of announcements. The implementation rules formulated by the State Administration for Market Regulation for six products have undergone two main changes compared to the past. Firstly, the requirements for production and inspection equipment and facilities have been adjusted; The second is to increase the requirements for production enterprises to implement the main responsibility of quality and safety, and to have the ability to trace quality and safety. The main consideration for making these adjustments is to enable the management of production licenses to truly play the role of strict admission from a systemic perspective, establish a mechanism for end to end effective work, and effectively ensure product quality and safety Li Hejun, Deputy Director of the Quality Supervision Department of the State Administration for Market Regulation, said. The Decision on Approval of Fertilizer Production License has adjusted the approval method of fertilizer production license from notification commitment to "approval before certification". What are the considerations for such changes? According to Li Hejun, fertilizers, as an important agricultural production product, are the material foundation for ensuring national food security and agricultural production development, directly related to increasing production and income for farmers. The fertilizer products subject to production license management are compound fertilizer and phosphate fertilizer. Since the implementation of notification commitment approval in China in 2020, some regions have experienced the phenomenon of chemical fertilizers being sold off as fake and substandard. In the comprehensive routine inspections conducted by market regulatory authorities in various regions, there are also cases of revoking production licenses due to false promises and other reasons. "Therefore, it is necessary to adjust the approval method for the production license of fertilizer products, from notification commitment to 'approval before certification' approval. That is, after the enterprise submits an application, the approval department should first conduct on-site verification of its production capacity and conditions. Only when the conditions are met can the production license be issued. By strengthening prior review and admission, product quality and safety can be guaranteed." Li Hejun said. The notification commitment system is a system in which the administrative counterpart, when applying for administrative approval matters, informs the administrative counterpart of the statutory approval conditions, standards, and requirements at once. After the administrative counterpart voluntarily makes a compliance commitment, the approval authority sets up the relevant approval matters for the applicant. Professor Yang Weidong from the Institute of Rule of Law and Government at China University of Political Science and Law analyzed that the disclosure commitment system simplifies the review process in traditional administrative approval systems from substantive review of approval conditions to formal review of applicant credit commitments. Through this kind of program reengineering, the institutional transaction costs and market entry barriers of enterprises have been greatly reduced, stimulating market vitality and conducive to cultivating a self-restraint, honest and responsible business environment. However, the notification commitment system cannot completely replace the administrative approval system. Especially for industrial products in major public interest areas such as national and social security, public life and health, the necessary level of strict administrative approval still plays a very important role. The approval method for fertilizer production license has been adjusted from notification commitment to "approval before certification" approval, which refers to the adjustment made only when the production license is revoked due to reasons such as fake or fake fertilizer products or false promises from unscrupulous merchants in practice. And fertilizer products are closely related to the important basic economic issue of food production safety, so it is necessary to strengthen the licensing and approval management of fertilizer products. (Lai Xin She)
Edit：Ying Ying Responsible editor：Shen Chen
Source：http://www.legaldaily.com.cn
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