(Promulgated by the State Council on April 5, 1986)
Contents
Chapter I General Provisions
Chapter II Quality Responsibility of the Enterprises for Production
Chapter III Quality Responsibility of the Enterprises for Handling and Storage
Chapter IV Quality Responsibility of the Enterprises for Marketing
Chapter V Supervision and Control over the Product Quality
Chapter VI Settlement of Disputes Relating to Product Quality Responsibility
Chapter VII Penalties
Chapter VIII Supplementary Provisions
Chapter I General Provisions
Article 1
For the purposes of explicitly defining the quality responsibility for industrial products (hereinafter referred to as "the product"), safeguarding the legitimate rights and interests of the users and consumers (hereinafter referred to as "the user"), ensuring the healthy development of commodity economy in a planned way, and promoting socialist modernization, this Regulation is hereby formulated.
Article 2
"Product quality" means the requirements contained in the relevant laws and regulations of the State, quality standards and contracts on the application, safety and other properties of products.
"Product quality responsibility" means the liability for damage caused to the user by the product quality that fails to conform to the above-mentioned requirements.
Article 3
The standardization department of the State shall be responsible for the development of unified national standards which shall not be lower than the international standards and may be classified and graded. The competent authorities responsible for the enterprises shall prescribe the deadline for the enterprises for production in achieving the highest grade of the national standards.
The State's department of pricing shall, in accordance with the classification and grades, implement the principle of "price according to quality".
Article 4
Enterprises engaging in production, handling and storage, and marketing of products must bear the product quality responsibility in accordance with the provisions of this Regulation.
All departments and localities, especially the competent authorities responsible for the enterprises, must control the product quality, supervise the enterprises in adhering to the principle of "quality first" , assuring the product quality and bearing quality responsibility. Those failing to exercise effective control and supervision shall be liable jointly and severally therefor.
Article 5
Authorities for quality-supervision and for industry and commerce administration must supervise the product quality and safeguard the users' interests.
Article 6
The product's quality certificate, manuals, "high-quality" sign and identity sign must all be in conformity with its actual quality level. The content of the advertisement with respect to quality must conform to the product's actual quality.
Article 7
All enterprises for production and marketing must observe strictly the following rules:
1. non-conforming products are forbidden from being dispatched from the factories or marketed;
2. non-conforming raw materials and parts and components are not allowed to be put into production or be used for assembly;
3. it is forbidden to produce and sell products whose elimination the State has explicitly ordered;
4. products without the product-quality standards or without being inspected by the quality inspection authorities are not allowed to be produced and marketed;
5. it is forbidden to plot frauds, to pass of unqualified product as qualified, to forge trademarks, or to imitate the famous brand products.
No enterprise for production or marketing may be allowed to sell its products by way of coupling-sale.
Chapter II Quality Responsibility of the Enterprises for Production
Article 8
All enterprises for production must assure that their product quality conforms to the requirements specified by relevant laws and regulations of the State, quality standards and the contract involved.
All enterprises for production must establish the quality assurance system which shall be strict, well-coordinated and effective, and define the product quality responsibility in an explicit manner. They must ensure that the quality inspection authorities can independently perform its functions of supervision and inspection. It is strictly forbidden to retaliate against the quality inspectors.
Article 9
The product leaving the factory must conform to the following requirements:
1. achieving the quality requirements of Article 2 of this Regulation, and having the quality certificate issued by the inspection authority and the inspector;
2. having the written explanation of, according to specific characteristics, the product's name, size, model, ingredients and the percentage, weight, direction for applications, lot No. of production, date of production, name and address of the producer, and the serial number of the technical standards for the said product; explicitly specifying the date of expiry in case of a product with time limit of efficacy. "High-quality" product must bear the mark thereof;
3. having the serial number, date of approval and the term of validity of the production license in case of a product under the production license system;
4. machinery, equipment, devices, apparatus and durable consumer goods, apart from conforming to the requirements in Items 1, 2 and 3 of this Article, shall be accompanied with detailed instructions on the use of the product. The content thereof includes: the product's technical-economic parameters, service life, range of application, term of guarantee, methods for installation, methods of maintenance and conditions for storage, term of technical maintenance and repair, and other effective data concerning the design parameters of the product. Electric products shall be attached with the circuit diagram and schematic diagram;
5. the package must conform to the relevant regulations and standards of the State. As regards the products that are drastically poisonous, dangerous, fragile, can not be laid on by heavy load, needs protection against moisture, and can not be turned upside down, there must be, on both the external and interior packing, obvious indication marks and notices for handling and storage. On the package of the product, there must be noted explicitly the actual weights (net and gross);
6. in the case of the product on which the trademark and quality classification and grading system is applied, there shall be signs for the said trademark, classification and grading on the product or the package thereof;
7. conforming to the requirements of the State's laws and regulations on safety, hygiene, environmental protection and measuring.
Article 10
The "substandard" goods that fail to conform to the requirements of the relevant standards of the State, but still have some use value, may be marketed at reduced prices upon approval of the competent authorities responsible for the enterprises; and there must be clearly marked on the products and their packages with the words of "substandard goods". Products failing to conform to the requirements of the State's laws and regulations concerning safety, hygiene and environmental protection and measuring must be destroyed or undergo necessary technical treatment in good time, and may not be allowed to enter the market in the name of "substandard goods". No substandard goods may be allowed to be used to produce or assemble market-oriented products.
Article 11
If, within the guarantee period of the product, the quality found out of line with the requirements of Article 2, the enterprise for production shall, according to the following different circumstances, bear the quality responsibility to the user and the seller:
1. in cases where the common part or component loses efficacy and therefore, after being replaced, the performance can immediately be restored, the enterprise shall be responsible for replacing with qualified parts or components and for restoring the normal performance within a specified time limit;
2. in cases where the main part or competent of the product has lost the efficacy and cannot be repaired within a specified time limit, the enterprise shall be responsible for replacing with acceptable products;
3. in cases where the major function fails to conform to the requirements of Article 2 due to such causes as designing and manufacture, if the user requires to return the goods, the enterprise shall refund;
4. in cases where economic loss has been caused, the enterprise shall also be liable for the actual loss;
5. in cases where the enterprises for maintenance and repair service or marketing are responsible for the after-sale technical servicing, the enterprise for production must supply sufficient standby products, spare parts and necessary technical support as contracted.
Chapter III Quality Responsibility of the Enterprises for Handling and Storage
Article 12
The enterprises which undertake to store, transport, load or unload the products must act in accordance with the relevant regulations of the State and the requirements for handling indicated on the package of the product.
Article 13
In the course of the product entering the warehouse for storage or leaving the warehouse, transport or delivery, the enterprise involved shall observe the storing-trans-system of handing-over and checking before acceptance, and define the quality responsibility in accordance with the relevant regulations of the State. In case it has been testified that the damage of the product is due to the cause of storage, transport or loading and unloading, the enterprises which store, transport or load and unload the product shall bear their respective responsibility and, according to relevant regulations of the State, be liable for the economic loss.
Chapter IV Quality Responsibility of the Enterprises for Marketing
Article 14
The enterprises for marketing shall, in laying in a stock of merchandise, examine and inspect the product, and define the quality responsibility. The products sold by the enterprises for marketing must conform to the provisions of Articles 7 and 9 of this Regulation.
Article 15
If, within the period of guarantee, the product sold by the enterprise for marketing is found not up to the requirements of Article 2, the said enterprise shall be responsible for repairing, replacement, recalling and refunding, and be liable for the actual economic loss.
Chapter V Supervision and Control over the Product Quality
Article 16
Every quality supervision authority shall, in accordance with the State's relevant regulations, organize independently or together with the authorities responsible for industry and commerce administration, for trades and for enterprises, regular supervision sample-checking on the various links such as production, handling, storage, and marketing, and regularly publicize the result of the inspection of the samples. Enterprises must honestly furnish the samples for checking and provide facilities with respect to the testing means and working conditions. Unless otherwise provided by the State, the collection of fees by the quality supervision authorities from the enterprises for sample-checking on the product may not be permitted, so as to guarantee their impartiality. The expenses needed for the technical means and
measures and for the inspection and test by the quality supervision authorities shall be covered by the State or local financial allocations according to the actual needs. The economic commissions at all levels are responsible for leadership, organization and co-ordination of the supervision and control over product quality.
Article 17
Competent authorities at all levels responsible for the trades and for the enterprises shall be responsible for the control over the product quality within the limits of their own trades.
Their functions and duties shall be, within their extents of authority, to formulate or take part in the formulation of the product quality standards and the rules and regulations, to supervise and control the product quality, to urge the enterprises to ensure their product quality, to perfect the quality assurance system, and to organize the issuance of production licenses.
Article 18
Social supervision over the product quality shall be carried out. The user may make inquiries about the quality at the enterprise for production, handling, storage and the marketing; and the social associations and organizations may help the user in the conciliation and arbitration relating to quality disputes, and support the user to file suits with the people's court.
Article 19
The user may, as agreed upon by both parties, send his representative to the enterprise for production in carrying out spot supervision over the process of the production and the product quality.
Chapter VI Settlement of Disputes Relating to Product Quality Responsibility
Article 20
If a dispute relating to the product quality occurs, it shall be settled in accordance with the relevant provisions of the Economic Contract Law in a case where an economic contract has been entered into; and in the absence of such contract, either party to the dispute may refer it to a quality supervision authority for conciliation or bring the matter to a people's court.
Article 21
If a dispute relating to the data of technical inspection of the product quality occurs, the party concerned or the conciliating or arbitrating authority involved may entrust legally designated quality inspection body for arbitral inspection; and the said body shall be responsible for the inspections it made.
Article 22
Unless the State provides otherwise, the request for arbitration or bringing of a suit over quality responsibility shall be filed within a year from the date the party involved knows or ought know his interests and rights being damaged. Where the party is willing to bear the responsibility, it is not limited by the limitation of actions.
Chapter VII Penalties
Article 23
Where the product quality of an enterprise fails to conform to the requirements laid down by the State, the competent authority shall order the enterprise to rectify within a given period.
If the rectification fails, the competent authority shall order the enterprise to stop production or switch over to a new line of products, or suggest the appropriate authority to revoke its production license and the business license. Within the period of rectification, the competent authority may, in the light of different circumstances, deduct the bonus and wages of the executive members, staff and workers of the enterprise.
Article 24
Where an enterprise for production or marketing has, in violation of a provision of this Regulation, one of the following acts, the competent authority shall give administrative sanctions to the person(s) responsible for the enterprise and to the persons bearing direct responsibility, the administration authority for industry and commerce shall confiscate its total illegal gains therefrom and impose a fine equivalent to 15% to 20% of the illegal gains according to the seriousness of the case, or the judicial authority shall investigate its legal responsibility:
1. to produce or sell adulterated product or imitated product, or to pass off "substandard" product as acceptable;
2. to produce or sell products without indicating the name and address of the producer;
3. to produce or sell products without quality certificate;
4. to produce or sell products of which the State has issued explicit order for their elimination;
5. to produce or sell the products on which the State adopts the system of production license, but fails to renew it after its expiry;
6. to produce or sell products manufactured or assembled with non-conforming raw materials, parts or components;
7. to produce or sell products contradicting the provisions of the State's laws and regulations on safety, hygiene, environmental protection and measuring;
8. to sell products which have passed the expiry date.
All gains confiscated and fines collected shall be turned to the State Treasury.
Article 25
If, in the course of sample-check on quality supervision, it is found that an enterprise for production or marketing has an act(s) under Article 24, the matter shall be handled by the quality supervision authority in accordance with the provisions of that Article. If a product is not in conformity to the provision of Item 7 of Article 9 of this Regulation, it shall be destroyed on the spot or be given the necessary technical treatment under the supervision of the quality supervision authority; and the enterprise for production or marketing shall be ordered to recall within the given time limit all the non-conforming products that have already been sold.
Anyone who, in violation of the provisions of Article 8 of this Regulation, retaliates against any quality inspector, or a member of quality supervision and quality inspection authorities acts wrongly out of personal consideration, shall be given an administration sanction by the competent authority involved. If the case is extremely serious, criminal responsibility shall be investigated according to law.
Article 26
Where the poor quality of the product has resulted in the user's injury or death or loss of property, hence violating the criminal code, the judicial authority shall investigate the criminal responsibility of the party concerned according to law.
Article 27
The above-mentioned penalty does not absolve the party responsible for the product quality of its responsibility for the repair, replacement, recovering the product with the money already paid, and the compensation for the actual economic loss to the users.
Chapter VIII Supplementary Provisions
Article 28
The relevant competent authorities may formulate the detailed implementation rules in accordance with the provisions of this Regulation. The quality responsibility for import & export products, for military products, and for special requirements, may separately be defined by the competent authorities concerned with reference to the principles of this Regulation.
Article 29
This Regulation shall apply to all enterprises owned by the whole people and by the collective, individual industrial and commercial operators as well as the Chinese-foreign equity joint ventures, contractual joint ventures, and foreign-capital enterprises in the territory of China.
Article 30
The State Economic Commission is authorized to interpret this Regulation.
Article 31 This Regulation shall enter into force on July 1, 1986.
