iSinoLaw Weekly

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Volume 29, Aug 7 ¡V Aug 13, 2006

²Ä29´Á¡A2006¦~8¤ë7 - 8¤ë13¤é

 

 

I.                  Highlights of New Laws

 

The MOC Issued a Notice to Strengthen the Supervision over Direct Selling

 

In order to thoroughly implement the ¡§Regulations on Administration of Direct Selling¡¨ and the ¡§Regulations on Prohibition of Multi-Level Marketing¡¨ (hereinafter referred to as ¡§the Regulations¡¨), and to strengthen the supervision over direct selling activities conducted by the direct selling enterprises, the Ministry of Commerce promulgated the ¡§Notice on Issues Concerning Strengthening the Administration of Direct Selling Enterprise Engaging in Direct Selling Activities¡¨ (iSinoLaw Reference ID:10018146, hereinafter referred to as the ¡§Notice¡¨) on August 8, 2006. The Notice requires the direct selling enterprises to carry out direct selling activities in strict compliance with the provisions of the Notice and also defines the five circumstances where the direct selling business license will be revoked.

 

The Notice stipulates that before carrying out the training and direct selling activities, the enterprise shall submit a list of direct selling trainers of the enterprise to the Ministry of Commerce for filing, and the enterprise shall recruit personnel and provide training and examination to them only after the Ministry of Commerce has publicized the approval in the information system of direct selling industrial administration. If the enterprise is in breach of the above-said provision, its business license shall be suspended. If the circumstance is serious, the Ministry of Commerce shall revoke its direct selling business license.

 

The trainer of direct selling enterprise shall conduct the training in strict compliance with the Regulations and relevant provisions. If the trainer is in breach of the said provisions, the Ministry of Commerce shall cancel the file of the trainer. The enterprise shall also take back the pass of direct selling trainer while the trainer shall not be allowed to conduct training activities. If the circumstance is serious, the Ministry of Commerce shall revoke the direct selling business license of such direct selling enterprise.

 

If the direct selling enterprise appropriate the guarantee deposit without permission, or adjust the guarantee deposit without compliance with the provisions, or the guarantee deposit has been frozen by judicial organ, the direct selling business license shall be suspended. If the enterprise fails to rectify the fault upon notification, the Ministry of Commerce shall revoke its direct selling business license.

 

The direct selling enterprise shall truly, accurately and completely disclose relevant information to the public in strict compliance with the Regulations and the relevant provisions, and shall report to the Ministry of Commerce and the State Administration for Industry and Commerce for filing. The direct selling enterprise shall be prohibited from misleading consumers by way of high profile promotion. If there is any breach of the said provisions, its direct selling business license shall be suspended. If the enterprise fails to rectify the fault upon notification, the Ministry of Commerce shall revoke its direct selling business license.

 

If there is any change in the investor, shareholding, registered capital, the remuneration system of direct sales, market planning report and other matters of the direct selling enterprise, the change thereof shall comply with the Regulations and shall be reported to the Ministry of Commerce for approval. If the enterprise no longer satisfies the conditions of direct selling, the Ministry of Commerce shall revoke its direct selling business license.

 

After such implementation, this Notice will further regulate the direct selling enterprises in their direct selling activities and will definitely exert positive influence on the direct selling industry of China.

 

 

 

(Translator: JS)

 

II.               Major Laws and Regulations in the Week

 

1.       Laws and Regulations Promulgated in the Week

NO

Title

Promulgation Date

Effective

Date

1

Decision of the Central Committee of the Communist Party of China on Studying ¡§The Selected LiteratureWorks of JIANG Zemin¡¨

13/8/2006

13/8/2006

2

Circular of the General Office of Work Safety Committee under the State Council on Four Recent Severe Accidents in Yunnan Province

11/8/2006

11/8/2006

3

Public Announcement on the Result of the Agreement Biding for Quota of Textiles Permitted to Export to Europe and the U.S. in 2006

11/8/2006

11/8/2006

4

Public Announcement No.61 of 2006 of the People¡¦s Bank of China on Publicizing the Market Business Transactions¡X¡XIssuance of the Central Bank Bill of the 59th Stage in 2006

10/8/2006

10/8/2006

5

Public Announcement of the Ministry of Commerce on Deferring the Auction of the State Sugar Reserve on August 15, 2006

10/8/2006

10/8/2006

6

Urgent Notice of the State Administration of Work Safety and the State Administration of Coal Mine Safety on Conscientiously Accomplishing the Work of Prevention of Typhoon and Ensuring the Work Safety

10/8/2006

10/8/2006

7

Public Announcement No.55 of 2006 on the Issuance of Bill of Central Bank¡X¡XIssuance of  the 59th Bill of Central Bank in 2006

9/8/2006

9/8/2006

8

Public Announcement No.6 of the State Electricity Regulatory Commission¡X¡XPromptly Receiving the Electricity Business License

9/8/2006

9/8/2006

9

Urgent Notice of the State Administration of Work Safety on Strengthening the Work of Prevention of Flood, Typhoon and Thunder and Ensuring the Work Safety

9/8/2006

9/8/2006

10

Public Announcement of the China Bank Regulatory Commission on Carrying out the Accreditation of Safety Appraisal Institutions of Electronic Bank in 2006

8/8/2006

8/8/2006

11

Notice of the Ministry of Commerce on Issues Concerning Strengthening the Administration of Direct Selling Enterprises Engaging in Direct Selling Activities

8/8/2006

8/8/2006

12

Public Announcement No.60 of 2006 of the People¡¦s Bank of China on Publicizing the Market Business Transactions¡X¡XIssuance of the Central Bank Bill of the 58th Stage in 2006

8/8/2006

8/8/2006

13

Public Announcement No.49 of 2006 of the National Development and Reform Commission¡X¡XConditions for Industry Admission of  Electrolysis Manganese Enterprises

8/8/2006

1/9/2006

14

Notice of the General Office of the National Development and Reform Commission on Relevant Issues concerning Implementing the Administration of Industry Admission in the Electrolysis Manganese Enterprises

8/8/2006

8/8/2006

15

Provisions on Merger and Acquisition of Domestic Enterprises by Foreign Investors

8/8/2006

8/9/2006

16

Circular of the Ministry of Information Industry on Granting the Production Qualification to the Tax Controlled Gathering Machine 

8/8/2006

8/8/2006

17

Notice of the Local Tax Bureau of Zhejiang Province on Relevant Taxation Policies Supporting the Construction of New Socialist  Villages

8/8/2006

8/8/2006

18

Reply of the People¡¦s Government of Chongqing Municipality on Setting up Chang Diping Toll Station in Wanzhong Highway

8/8/2006

8/8/2006

19

Reply Letter of Price Control Bureau of Fujian Province on Checking and Ratifying the Standards for the Tuition of Jinshan College of Fujian Agriculture and Forestry University

8/8/2006

8/8/2006

20

Reply Letter of Price Price Control Administration of Fujian Province on Checking and Ratifying the Standards for the Charge of Xiamen Software Vocational and Technical College

8/8/2006

8/8/2006

21

Opinions of Public Security Department, Communications Department and Education Department of Zhejiang Province on Strengthening the Administration of School Bus of Primary and Secondary Schools

8/8/2006

8/8/2006

22

Notice of the General Office of the People¡¦s Government of Jinlin Province on Establishing the Information Liaison Group of Network Propaganda in the Government System of the Province

8/8/2006

8/8/2006

23

Notice of the General Office of the People¡¦s Government of Chongqing Municipality on Issuing the Implementation Scheme for the 2006 Chongqing Animation & Comics and Games Exhibition

8/8/2006

8/8/2006

24

Notice of the General Office of the Ministry of Public Health on Issuing the ¡§Guiding Scheme for Rescue and Treatment of Medicine Adverse Reactions to Clindamycin Phosphate Glucose Injection (¡§Xinfu¡¨)¡¨

7/8/2006

7/8/2006

25

Urgent Notice of the Agriculture Bureau of Chongqing Municipality on Accomplishing Current Work of Prevention and Treatment of Hydrophobia

7/8/2006

7/8/2006

26

Public Announcement No.54 of 2006 on the Issuance of Bill of Central Bank¡X¡XIssuance of  the 58th Bill of Central Bank in 2006

7/8/2006

7/8/2006

27

Reply Letter of the State Administration of Work Safety on Relevant Issues concerning the Designated Work of Dangerous Chemical Packing Material & Container Manufacturers

7/8/2006

7/8/2006

28

Measures on Administration of Health Insurance

7/8/2006

1/9/2006

 

 

2.       Laws and Regulations Coming into Force in the Week

NO

Title

Promulgation Date

Effective

Date

1

Decision of the Central Committee of the Communist Party of China on Studying ¡§The Selected LiteratureWorks of JIANG Zemin¡¨

13/8/2006

13/8/2006

2

Circular of the General Office of Work Safety Committee under the State Council on Four Recent Severe Accidents in Yunnan Province

11/8/2006

11/8/2006

3

Public Announcement on the Result of the Agreement Biding for Quota of Textiles Permitted to Export to Europe and the U.S. in 2006

11/8/2006

11/8/2006

4

Public Announcement No.61 of 2006 of the People¡¦s Bank of China on Publicizing the Market Business Transactions¡X¡XIssuance of the Central Bank Bill of the 59th Stage in 2006

10/8/2006

10/8/2006

5

Public Announcement of the Ministry of Commerce on Deferring the Auction of the State Sugar Reserve on August 15, 2006

10/8/2006

10/8/2006

6

Urgent Notice of the State Administration of Work Safety and the State Administration of Coal Mine Safety on Conscientiously Accomplishing the Work of Prevention of Typhoon and Ensuring the Work Safety

10/8/2006

10/8/2006

7

Public Announcement No.55 of 2006 on the Issuance of Bill of Central Bank¡X¡XIssuance of  the 59th Bill of Central Bank in 2006

9/8/2006

9/8/2006

8

Public Announcement No.6 of the State Electricity Regulatory Commission¡X¡XPromptly Receiving the Electricity Business License

9/8/2006

9/8/2006

9

Urgent Notice of the State Administration of Work Safety on Strengthening the Work of Prevention of Flood, Typhoon and Thunder and Ensuring the Work Safety

9/8/2006

9/8/2006

10

Public Announcement of the China Bank Regulatory Commission on Carrying out the Accreditation of Safety Appraisal Institutions of Electronic Bank in 2006

8/8/2006

8/8/2006

11

Notice of the Ministry of Commerce on Issues Concerning Strengthening the Administration of Direct Selling Enterprises Engaging in Direct Selling Activities

8/8/2006

8/8/2006

12

Public Announcement No.60 of 2006 of the People¡¦s Bank of China on Publicizing the Market Business Transactions¡X¡XIssuance of the Central Bank Bill of the 58th Stage in 2006

8/8/2006

8/8/2006

13

Notice of the General Office of the National Development and Reform Commission on Relevant Issues concerning Implementing the Administration of Industry Admission in the Electrolysis Manganese Enterprises

8/8/2006

8/8/2006

14

Circular of the Ministry of Information Industry on Granting the Production Qualification to the Tax Controlled Gathering Machine 

8/8/2006

8/8/2006

15

Notice of the Local Tax Bureau of Zhejiang Province on Relevant Taxation Policies Supporting the Construction of New Socialist  Villages

8/8/2006

8/8/2006

16

Reply of the People¡¦s Government of Chongqing Municipality on Setting up Chang Diping Toll Station in Wanzhong Highway

8/8/2006

8/8/2006

17

Reply Letter of Price Control Bureau of Fujian Province on Checking and Ratifying the Standards for the Tuition of Jinshan College of Fujian Agriculture and Forestry University

8/8/2006

8/8/2006

18

Reply Letter of Price Price Control Administration of Fujian Province on Checking and Ratifying the Standards for the Charge of Xiamen Software Vocational and Technical College

8/8/2006

8/8/2006

19

Opinions of Public Security Department, Communications Department and Education Department of Zhejiang Province on Strengthening the Administration of School Bus of Primary and Secondary Schools

8/8/2006

8/8/2006

20

Notice of the General Office of the People¡¦s Government of Jinlin Province on Establishing the Information Liaison Group of Network Propaganda in the Government System of the Province

8/8/2006

8/8/2006

21

Notice of the General Office of the People¡¦s Government of Chongqing Municipality on Issuing the Implementation Scheme for the 2006 Chongqing Animation & Comics and Games Exhibition

8/8/2006

8/8/2006

22

Public Announcement of the Supreme People¡¦s Procuratorate on the QualifiedExamination of Public Prosecutors

8/8/2006

8/8/2006

23

Notice of the General Office of the Ministry of Public Health on Issuing the ¡§Guiding Scheme for Rescue and Treatment of Medicine Adverse Reactions to Clindamycin Phosphate Glucose Injection (¡§Xinfu¡¨)¡¨

7/8/2006

7/8/2006

24

Urgent Notice of the Agriculture Bureau of Chongqing Municipality on Accomplishing Current Work of Prevention and Treatment of Hydrophobia

7/8/2006

7/8/2006

25

Public Announcement No.54 of 2006 on the Issuance of Bill of Central Bank¡X¡XIssuance of  the 58th Bill of Central Bank in 2006

7/8/2006

7/8/2006

26

Reply Letter of the State Administration of Work Safety on Relevant Issues concerning the Designated Work of Dangerous Chemical Packing Material & Container Manufacturers

7/8/2006

7/8/2006

 

 

 

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