Stipulations For Recognition And Protection Of Well-Known Trademarks

Rule 1 These stipulations are hereby formulated in accordance with the Trademark Law of the People’s Republic of China (hereinafter referred to as the Trademark Law) and the Implementing Regulations of the Trademark Law of the People’s Republic of China (hereinafter referred to as the Implementing Regulations).

Rule 2 The “well-known trademark” prescribed in the stipulations refers to a trademark which the relevant general public is very well aware of and which enjoys the high prestige.
The “relevant general public” shall include consumers who use some products or services bearing the trademark, merchants who produce the above-mentioned products or furnish the service and relevant sellers and employees concerned in their business channels

Rule 3 The following documentation could be used as the evidence to prove well-known nature of a trademarks:
(1) Documentation to prove the extent to which the relevant general public is aware of the trademark,
(2) Documentation to prove the duration of the use of trademark, including the history and sphere of the use and registration of trademark.
(3) Documentation to prove the duration, geographical areas and extent to which the knowledge of the trademark covers, including but not limited to the mode and geographical areas of advertising and sales promotion, the types of promoting media as well as the budget fixed for the advertising.
(4) Documentation showing the record of the trademark protected as a well-known trademark, including the trademark being protected as a well-known trademark in China or other countries and regions.
(5) Other documentation to prove the well-known nature of the trademark, including the output, sales volume, sales income, profit and taxes paid as well as sales areas and so forth of the principal products bearing the trademark.

Rule 4 If the party concerned holds that others’ preliminarily approved and published trademark contravenes the regulation of Article 13 of the Trademark Law, he could, under the Trademark Law and the Implementing Regulations thereof, file an opposition with the Chinese Trademark Office and submit the evidential documents to prove the well-known nature of the trademark involved.
If the party concerned holds that other’s registered trademark contravenes the regulation of Article 13 of the Trademark Law, he could, under the Trademark Law and the Implementing Regulations thereof, request the Trademark Review and Adjudication Board of the State Administration for Industry and Commerce (hereinafter referred to as the Trademark Review and Adjudication Board) adjudicate on the cancellation of the registered trademark and submit the evidential documents to prove the well-known nature of the trademark involved.

Rule 5 During the process of administrating the trademark, if the party concerned holds the trademark used by others falls into the circumstances prescribed by Article 13 of the Trademark Law and pleads for protecting the well-known trademark, he could submit a written application for prohibiting the use of the trademark together with the evidential documents proving the well-known nature of the trademark involved to the municipal (provincial) administrative authority for industry and commerce at the location where the case is carried out, and at the same time reports to the provincial administrative authority for industry and commerce.

Rule 6 Upon receiving the application for the protection of a well-known trademark, the administrative authority for industry and commerce should examine whether the case falls into the circumstances as provided in Article 13 of the Trademark Law:
(1) Whether others arbitrarily use the trademark similar to or identical with an unregistered well-known trademark in China with respect to the identical or similar goods of the party concerned, and the likelihood for the creation of confusion;
(2) Whether others arbitrarily use the trademark similar to or identical with a registered well-known trademark in China with respect to goods not identical or similar to which the well-known trademark covers, and is likely to mislead the public and damage the interests of the owner of the registered well-known trademark;

The municipal (provincial) administrative authority for industry and commerce should, as soon as it decides that the case falls into the above-prescribed circumstances, transfer all materials in the case file to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry and commerce at the location with fifteen (15) working days from the date of accepting the filed application of the party concerned, and issue a Notification of Case Accept (notice of filing of the application) to the party concerned; the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall transfer all materials in the case file to the Chinese Trademark Office within fifteen (15) working days from the date of accepting the application filed by the party concerned. The provincial administrative authority for industry and commerce at the location of the party concerned could also, if it decides that a case falls into the above-prescribed circumstances, transfer all the materials in the case file to the Chinese Trademark Office.

If a case is decided to not fall into the above-prescribed circumstances, it should be, under the Trademark Law and the Implementing Regulations thereof, settled without delay.

Rule 7 The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall examine the materials in the case file transferred by the municipal (provincial) administrative authority for industry and commerce within the area under its jurisdiction.
The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall, if it decides a case falls into the circumstances prescribed by Rule 6, Item 1 of the Stipulations, transfer all the materials in the case file to the Chinese Trademark Office within fifteen (15) days from the date receiving the same transferred by the municipal (provincial) administrative authority for industry and commerce with the area under its jurisdiction.
The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry shall, if decides a case does not fall into the circumstances prescribed by Rule 6, Item 1 of the Stipulations, return the relevant materials to the original case accepting authority, which should, under the Trademark Law and the Implementing Regulations thereof, settle the case without delay.

Rule 8 The Chinese Trademark Office shall make the recognition within six (6) months from the date the relevant materials were received, inform the recognition result to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the case is carried out, and copy to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the party concerned locates.
The Chinese Trademark Office shall, except the evidential materials to prove the well-known nature of the trademark, return all other materials in the case file to the provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location the case is carried out.

Rule 9 As to the trademark which is not recognized as a well-known trademark, the party concerned shall not, within one (1) year from the date the recognition was made, plead for recognizing the same well-known nature of the trademark on the basis of the same facts and grounds.

Rule 10 The Chinese Trademark Office and the Trademark Review and Adjudication Board shall, when recognizing the well-known nature of a trademark, take into comprehensive consideration the factors prescribed in Article 14 of the Trademark Law, but is not required that a trademark should fit all the factors prescribed in Article 14.
Rule 11 The Chinese Trademark Office, the Trademark Review and Adjudication Board and the local administrative authority for industry shall, when protecting a well-known trademark, take into consideration the extent to which the trademark is well-known and the distinctiveness thereof.

Rule 12 Where the party concerned pleads for the protection for its trademark in accordance with Article 13 of the Trademark Law, he should furnish the documentation of record showing the trademark was protected by the Chinese competent authority as a well-known trademark.

Where the accepted case shares a similar scope of protection as the case in which the trademark was protected as a well-known trademark, and the opposite party has no objection to the well-known nature of the trademark involved, or even raised an objection but could not furnish the evidential documentation against the well-known nature of the trademark involved, the administrative authority for industry accepting the case could, according to the conclusion drawn from the protection record, pass judgment.

Where the scope of protection of the accepted case is different from that of the case in which the trademark was protected as a well-known trademark, or the opposite party raised an objection and furnished evidential documentation against the well-known nature of the trademark involved, the Trademark Office or the Trademark Review and Adjudication Board should re-examine the documentation proving the well-known nature of the trademark involved and make the recognition.

Rule 13 Where the party concerned holds that others record its well-known trademark as the name of others’ enterprise, and the public are liable to be deceived or misled, he could apply to the enterprise name recording authority to cancel such enterprise name. The enterprise name recording authority should settle the case according to Enterprise Name Recordal Management Regulations.

Rule 14 The administrative authority for industry at all levels shall reinforce the protection for the well-known trademarks, and duly transfer to the relevant authority the case being suspected of the crime of counterfeit trademark.

Rule 15 The provincial (autonomous region, municipality directly under the Central Government) administrative authority for industry at the location of an authority settling a case should report the decision on protection of the well-known trademarks to the Chinese Trademark Office.

Rule 16 The administrative authority for industry at all levels shall establish a corresponding supervisory system and formulate the supervisory and restraint measure so as to reinforce the supervisory management during the procedure of recognition of the well-know nature of the trademark.
Where a member of the state personnel responsible for recognizing the well-known nature of trademarks abuses power or practices fraud for personal considerations, or reaps the unlawful profits or handles the case in violation of the stipulations of well-known trademark recognition, he shall be subject to administrative disciplinary measures according to rules and regulations; if the case is so serious as to constitute a crime, he shall be prosecuted according to law for his criminal liabilities.

Rule 17 These Stipulations shall enter into force on June 1, 2003. The Interim Stipulations for Well-Known Trademark Recognition and Management promulgated by the State Administration of Industry and Commerce on August 14th, 1996 shall be abrogated on the same date.

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Product Quality Law of the People’s Republic of China

Contents

Chapter I General Provisions

Chapter II Product Quality Supervision

Chapter III Producer’s and Seller’s Liability and Commitment for Product Quality
Section 1 Producer’s Liability and Commitment for Product Quality
Section 2 Seller’s Liability and Commitment for Product Quality

Chapter IV Liability for Damage

Chapter V Penalty Provisions

Chapter VI Final Provisions

Chapter I General Provisions

Article 1
For the purposes of strengthening product quality supervision and control, raising the product quality level, clarifying the liability for product quality, protecting the legitimate rights and interests of consumers and safeguarding the socio-economic order, this Law is formulated.

Article 2
The engagement in production or sale activities of products in the territory of the People’s Republic of China must comply with this Law.

For the purposes of this Law, product means the product which is processed or manufactured for sale.

The provisions of this Law are not applicable to construction projects; however, the provisions of this Law are applicable to materials, component parts and equipment for construction projects if they lie to the range of product within the meaning of the preceding paragraph.

Article 3
Every producer or seller shall establish and amplify his internal product quality management system and implement the job quality specifications, quality liability and connected assessment measures strictly.

Article 4
Producers and sellers assumes the liability for product quality pursuant to the provisions of this Law.

Article 5
It is forbidden to forge or to use illegally quality marks such as the certification mark; it is forbidden to forge the place of production of a product or to forge or to use illegally the factory name or address of another person; and it is forbidden to mix impurities or fakes into products produced or sold or to pass the fake product off as the genuine one or the shoddy product off as the high-quality one.

Article 6
The State encourages the practice of scientific quality management methods and the employment of advanced science and technology, and encourages the enterprises’ product quality coming up to or exceeding the sector, national and international standards.

Units and individuals having advanced product quality management, internationally advanced product quality and outstanding achievements are rewarded and praised.

Article 7
People’s governments at all levels shall incorporate the product quality improvement into the national economic and social development plan, strengthen the overall planning, organizing and leadership of the product quality work, guide and urge producers and sellers to strengthen their product quality management and to improve their product quality, organize all relevant departments to take measures according to law and to prevent the acts of violating this Law in the production and sale of products, and ensure the operation of this Law.

Article 8
The State Council’s supervisory department for product quality is in charge of the product quality supervision work throughout the country. Relevant departments of the State Council are responsible for the product quality supervision work within their respective spheres of responsibility and authority.

Local supervisory departments for product quality at or above the county level are in charge of the product quality supervision work within their respective administrative areas. Relevant departments of local people’s governments at or above the county level are responsible for the product quality supervision work within their respective spheres of responsibility and authority.

If any other law provides otherwise on the supervisory department for product quality, the provisions of the said law govern.

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Article 9
No servant of people’s governments and other State organs at all levels may abuse their powers of office, neglect their duties or practice favoritism or irregularities for shielding or tolerating the acts of violating the provisions of this Law in the production or sale of products within their respective areas or sectors or obstructing or intervening in the investigation and punishment into the acts of violating the provisions of this Law in the production and sale of products.

If the local people’s government at any level or any other State organ has an act of shielding or tolerating the violation of the provisions of this Law in the production or sale of a product, its principal responsible person is demanded for legal liability according to law.

Article 10
Any unit or individual is entitled to report an act of violating the provisions of this Law to the supervisory department for product quality or any other relevant department.

Supervisory departments for product quality and relevant departments shall keep confidential for reporters and give rewards and praises thereto according to the provisions of provinces, autonomous regions and municipalities directly under the Central Government.

Article 11
No unit or individual may refuse a quality-acceptable product produced by an enterprise of non-local area or sector to enter its own area or sector.

Chapter II Product Quality Supervision

Article 12
The product quality shall be inspected and acceptable, and the nonconforming product may not be passed off as the acceptable product.

Article 13
Industrial products which might endanger the health and personal or property safety must comply with the national or sector standards for safeguarding the health and personal or property safety; and in case of absence of such national or sector standards, they must comply with the requirements for safeguarding the health and personal or property safety.

It is forbidden to produce or to sell industrial products which fail to comply with the standards and requirements for safeguarding the health and personal or property safety. The concrete measures therefor are provided by the State Council.

Article 14
The State practices the enterprise quality system certification according to the internationally used quality management standards. Pursuant to the principle of its own accord, an enterprise may apply for the enterprise quality system certification to a certifying body approved by the State Council’s supervisory department for product quality or by its authorized department. If an enterprise passes the certification, the certifying body issues a document of enterprise quality system certification thereto.

The State practices the product quality certification system by reference to the internationally advanced product standards and technical requirements. Pursuant to the principle of its own accord, an enterprise may apply for the product quality certification to a certifying body approved by the State Council’s supervisory department for product quality or by its authorized department. If the enterprise passes the certification, the certifying body issues a document of product quality certification thereto and the enterprise is allowed to put the product quality certification mark on its products or packages.

Article 15
The State adopts the supervisory inspection system for product quality with the spot check as its main form and imposes the spot check on the products which might endanger the health and personal or property safety, the key industrial products which have a bearing on the national economy and the people’s livelihood and the products of which quality problems are reported by consumers or interested organizations. Samples therefor shall be taken randomly from the products ready for sale in the market or in the enterprise’s finished products warehouse. The supervisory spot check work is planned and organized by the State Council’s supervisory department for product quality. Local supervisory departments for product quality at or above the county level may also organize the supervisory spot check within their respective administrative areas. If any other law provides otherwise on the supervisory inspection over product quality, the provisions of the said law govern.

If the State imposes the supervisory spot check on a product, the locality may not make a repeated spot check separately thereon; and if the superior department imposes the supervisory spot check on a product, the lower department may not make a repeated spot check separately thereon.

Products may be inspected as required by the supervisory spot check. The number of samples taken for such inspection may not exceed the reasonable demand therefor, and no inspection expense may be collected from the party being inspected. Inspection expenses needed by the supervisory spot check are recorded and paid according to the State Council’s provisions.

A producer or seller disagreeing with the inspection result in the sport check may, within 15 days from the day of receiving the inspection result, apply for a re-inspection to the supervisory department for product quality which makes the supervisory spot check or to its superior supervisory department for product quality, and the supervisory department for product quality which accepts the re-inspection application gives a re-inspection conclusion.

Article 16
No producer or seller may refuse the supervisory inspection imposed on the product quality according to law.

Article 17
If the quality of a product fails to pass the supervisory spot check imposed according to the provisions of this Law, the supervisory department for product quality which imposes the supervisory spot check orders the producer or seller to make corrections within a given time limit. If he fails to do so as scheduled, the supervisory department for product quality of the people’s government at or above the provincial level issues a public announcement; if the quality fails to pass the re-inspection after announcement, he is ordered to suspend for rectification within a given time limit; and if the quality still fails to pass the re-inspection at the expiry of the given time limit, his business license is revoked.

If a product has a serious quality problem through the supervisory spot check, punishment is given according to the relevant provisions of Chapter V of this Law.

Article 18
When a supervisory department for product quality at or above the county level investigates and punishes an act suspected of violating the provisions of this Law depending on the evidences of the suspected violation already obtained or reports received, it may perform the following duties and powers:

1. to carry out on-the-spot inspection over the site where the party concerned suspected of engaging in production and sale activities of violating this Law;

2. to investigate into and inquire about the production and sale situation suspected of violating this Law from the legal representatives and principal responsible persons of the party concerned and other related persons;

3. to consult and duplicate relevant contracts, invoices, books and other related materials of the party concerned; and

4. to seal up or detain those products which are considered, based on the evidences, nonconforming to the national or sector standards for safeguarding the heath and personal or property safety, products which have other serious quality problems as well as raw materials, auxiliary materials, packaging materials and means of production directly used for the production and sale of the said product.

When investigating and punishing an act suspected of violating the provisions of this Law according to the spheres of responsibility and authority defined by the State Council, the administrative department for industry and commerce at or above the county level may perform the duties and powers set forth in the preceding paragraph.

Article 19
A product quality inspection body must have required inspection facilities and capability and can engage in the product quality inspection work only after it passes the examination from the supervisory department for product quality of the people’s government at or above the provincial level or its authorized department. If any other law or administrative regulations provide otherwise on the product quality inspection body, the provisions of the said law or administrative regulations govern.

Article 20
All social intermediary agencies engaging in product quality inspection or certification must be established according to law and may not have a subordination relationship or any other interest relationship with any administrative organ or any other State organ.

Article 21
Product quality inspection or certifying bodies must, in accordance with relevant standards, objectively and fairly produce inspection results or certification documents according to law.

Product quality certifying bodies shall, in accordance with the State’s provisions, carry out after-certification tracking inspection on the products allowed to use the certification marks; Any use of certification marks failing to comply with the certification standards shall be demanded for corrections; and if the circumstance is serious, the qualifications for using certification marks are revoked.

Article 22
Consumers have the right to make inquiries to producers and sellers about the product quality; and to make complaints to the supervisory departments for product quality, the administrative departments for industry and commerce and relevant departments. The departments which accept the complaints shall be responsible for handling.

Article 23
Social organizations for protecting the rights and interests of consumers may suggest to the relevant departments to handle the matters concerning the product quality reported by consumers, and support consumers in bringing suits before people’s courts on the damage caused by the product quality.

Article 24
The supervisory departments for product quality of the State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall periodically issue public announcements on the quality conditions of products supervised and inspected.

Article 25
The supervisory departments for product quality or other State organs and product quality inspection bodies may not recommend the products of producers to the social public; and may not take part in the product marketing activities under the name of supervisory production or supervisory sale.

Chapter III Producer’s and Seller’s Liability and Commitment for Product Quality

Section 1 Producer’s Liability and Commitment for Product Quality

Article 26
Producers shall be liable for the quality of products they produce.

The quality of a product shall satisfy the following requirements:

1. being free from unreasonable dangers to the personal or property safety, and conforming to the national or sector standards for safeguarding the health and personal or property safety if such standards are available;

2. possessing the properties and functions for use that they ought to possess, except for those with directions stating the defects in the functions of the product; and

3. conforming to the product standards marked on the product or on the package thereof, and to the quality conditions indicated by way of product directions and physical sample.

Article 27
Every identification on a product or on the package thereof must be authentic and satisfies the following requirements:

1. having the certificate showing that the product has passed quality inspection;

2. having the name of the product and the name and address of the manufacturer factory in Chinese language;

3. having Chinese identification accordingly if it is, in accordance with the characteristics of a product and use requirements, necessary to indicate the specifications and grade of the product, and the name and content of principal components; and when it is necessary for consumers to know in advance, it shall be indicated on the outer package of the product, or relevant materials shall be offered to consumers in advance;

4. having the date of production and the period of safe use or date of invalidity indicated clearly at an obvious place if the use of a product is limited to a certain period; and

5. having a warning mark or warning explanatory words in Chinese language if a product, due to improper use, might cause damage to the product itself or might endanger the personal or property safety.

Food products without package and other primarily packed products that are difficult to be marked because of their characteristics could not be attached with such product identifications.

Article 28
The package quality of dangerous products such as fragile, inflammable, explosive, toxic, corrosive and radioactive products, products that should be kept upright during storage and transportation and other products with special requirements shall satisfy the corresponding requirements, and warning marks or warning explanatory words in Chinese language and matters of attention for storage and transportation are given according to the State’s relevant provisions.

Article 29
No producer may produce a product that has been officially eliminated by the State.

Article 30
No producer may forge the place of production, and may forge or use illegally any other producer’s name or address.

Article 31
No producer may forge or use illegally quality marks such as the certification mark.

Article 32
No producer may, in the production of a product, mix impurities or fakes into the product, substitute the fake product for the genuine one, the shoddy product for the high-quality one, and pass the nonconforming product off as the acceptable one.

Section 2 Seller ??s Liability and Commitment for Product Quality

Article 33
Sellers shall set up and implement the acceptance inspection system when they receive products and examine the quality certificate and other identifications of products.

Article 34
Sellers shall take measures to maintain the quality of products for sale.

Article 35
No seller may sell a product that has already been officially eliminated by the State or an invalid or deteriorated product.

Article 36
The identifications of products being sold by sellers shall comply with the provisions of Article 27 of this Law.

Article 37
No seller may forge the place of production and may forge or use illegally any other producer’s name or address.

Article 38
No seller may forge or use illegally quality marks such as certification mark.

Article 39
No seller may, in the sale of a product, mix impurities or fakes into the product, substitute the fake product for the genuine one, the shoddy product for the high-quality one, or pass the nonconforming product off as the acceptable one.

Chapter IV Liability for Damage

Article 40
A seller shall be liable for repair, replacement or refund if he sells a product under any of the following circumstances; and if the product causes a damage to the consumer, the seller shall be liable therefor:

1. failing to have the usable property the product ought to have and the prior explanations;

2. failing to comply with the product standards indicated on the product or its package; or

3. failing to satisfy the quality conditions indicated by way of product directions or sample.

After the seller fulfilled its liability for repair, replacement, refund or damage in accordance with the provisions of the preceding paragraph and if it lies to the liability of the producer or any other seller who supplies the product (hereinafter cited as the supplier), the seller has the right to seek compensation from the producer or the supplier.

If the seller fails to make the repair, replacement, refund or compensation according to the provisions of the first paragraph, the supervisory department for product quality or the administrative department for industry and commerce orders the said seller to make corrections.

If a sale contract or processing contract concluded between the producers, the sellers or the producer and the seller contains different stipulations, the parties to the contract shall perform according to the stipulations of the contract.

Article 41
If a personal injury or damage to a property other than the defective product itself (hereinafter cited as the other’s property) is caused by the defect of a product, the producer shall be liable for the injury or damage.

The producer is not liable for damage if he can prove any of the following circumstances:

1. The product is not put into circulation;

2. The defect causing the damage did not exist at the time when the product was put into circulation; or

3. The science and technology at the time when the product was put into circulation was at a level incapable of detecting the defect.

Article 42
A seller shall be liable for a personal injury or damage to the other’s property caused by a product’s defect resulted from the fault of the seller.

A seller shall be liable for damage if he can not give the producer or the supplier of the defective product.

Article 43
If the defect of a product causes personal injury or damage to other’s property, the injured or damaged person may claim compensation from the producer of the product or may also claim compensation from the seller of the product. If the compensation lies to the liability of the producer of the product but the seller of the product has made the compensation, the seller of the product has the right to seek the compensation from the producer of the product. If it lies to the liability of the seller of the product but the producer of the product has made the compensation, the producer of the product has the right to seek the compensation from the seller of the product.

Article 44
If the defect of a product causes personal injury to the injured person, the injurer shall compensate for the medical expenses, the nursing fees during the period of treatment and income lost due to the miss of work; if it causes the disability of the injured person, the injurer shall pay the fees for self-aid tools, living allowance, compensation for the disability and the living expenses for the persons the injured person supports; and if it causes the death of the injured person, the injurer shall pay the funeral expenses, the pension for the family of the deceased and the living expenses necessary for the persons supported by the deceased before his death.

If the defect of a product causes damage to the property of the injured person, the injurer shall restore the damaged property to its original state or pay compensation according to the market price. If the injured person suffers other substantial damages therefrom, the injurer shall be liable therefor.

Article 45
The limitation period of action for claiming compensation for damage caused by the defect of a product is two years, counting from the date on which the party concerned knows or should know the infringement of his rights and interests.

The right to claim damages resulting from the defect of a product ceases to exist upon the expiry of a period of ten years from the date on which the defective product causing the damage is delivered to the first consumer, except where the period for safe use clearly indicated has not expired.

Article 46
For the purpose of this Law, defect means the unreasonable danger existing in a product that endangers the personal or other’s property safety; and if national or sector standards for safeguarding the health and personal or property safety are available, it means any unconformity to such standards.

Article 47
If a civil dispute arises from the product quality, the parties concerned may settle it through negotiation or mediation. Should the parties be unwilling to resort to negotiation or mediation or the negotiation or mediation be unsuccessful, they may apply to an arbitration organization for arbitration according to their agreement; and if the parties concerned fail to reach such an arbitration agreement or such agreement is invalid, they may directly initiate an action before a people’s court.

Article 48
The arbitration organization or the people’s court may ask the product quality inspection body set forth in Article 19 of this Law to conduct the related product quality inspection.

Chapter V Penalty Provisions

Article 49
Anyone who produces or sells a product failing to comply with the relevant national or sector standards for safeguarding the health and personal or property safety is ordered to stop the production or sale, is confiscated of the product illegally produced or sold and concurrently is imposed a fine equivalent to but less than three times of the value amount of the product illegally produced or sold (including the product already sold and not yet sold, the same hereinafter); is confiscated of his illegal gains concurrently if any; is revoked his business license if the circumstance is serious; and is demanded for criminal responsibility according to law if a crime is constituted.

Article 50
Anyone who mixes impurities or fakes into a product or passes a fake product off as genuine one, a shoddy product as a high-quality one or a nonconforming product as an acceptable one, is ordered to stop the production or sale, is confiscated of the product illegally produced or sold and concurrently is imposed a fine exceeding 50% but not exceeding three times of the value amount of the product illegally produced or sold; is confiscated of his illegal gains concurrently if any; is revoked his business license if the circumstance is serious; and is demanded for criminal responsibility according to law if a crime is constituted.

Article 51
Anyone who produces a product which is officially eliminated by the State or sells a product which is officially eliminated by the State and stopped sale is ordered to stop the production or sale, is confiscated of the product illegally produced or sold and concurrently is imposed a fine not exceeding the value amount of the product illegally produced or sold; is concurrently confiscated of his illegal gains therefrom if any; and is revoked his business license if the circumstance is serious.

Article 52
Anyone who sells an invalid or a deteriorated product is ordered to stop the sale, is confiscated of the product illegally sold and concurrently is imposed a fine not exceeding two times of the value amount of the product illegally sold; is concurrently confiscated of his illegal gains therefrom if any; is revoked of his business license if the circumstance is serious; and is demanded for criminal responsibility according to law if a crime is constituted.

Article 53
Anyone who forges the place of production of a product, forges or uses illegally the name or address of any other factory, forges or uses illegally quality marks such as certification mark, is ordered to make corrections, is confiscated of the product illegally produced or sold and concurrently is imposed a fine equivalent to the value amount of the product illegally produced or sold; is confiscated concurrently of his illegal gains therefrom if any; and is revoked his business license if the circumstance is serious.

Article 54
Anyone whose product identifications fail to comply with the provisions of Article 27 of this Law is ordered to make corrections; and anyone whose packaged product identifications fail to comply with the provisions of Article 27.4 or 5 of this Law is ordered to stop the production or sale and concurrently is imposed a fine not exceeding 30% of the value amount of the product illegally produced or sold if the circumstance is serious; and is concurrently confiscated of his illegal gains therefrom if any.

Article 55
The seller of a product forbidden by the provisions of Articles 49 to 53 of this Law may be given lenient punishment or reduced punishment if he has sufficient evidences proving that he has no knowledge of the product forbidden for sale and could give the source of the product.

Article 56
Anyone who refuses to accept product quality supervisory inspection imposed according to law is given a warning and ordered to make corrections; is ordered to suspend operation for rectification if he refuses to make corrections; and is revoked his business license if the circumstance is extremely serious.

Article 57
If a product quality inspection or certifying body forges an inspection result or issues a false document, it is ordered to make corrections, the unit is imposed a fine exceeding 50,000 yuan but not exceeding 100,000 yuan and the principal person directly responsible and other persons directly responsible are imposed a fine exceeding 10,000 yuan but not exceeding 50,000 yuan; is concurrently confiscated of its illegal gains therefrom if any; is revoked its qualifications for inspection or certification if the circumstance is serious; and is demanded for criminal responsibility according to law if a crime is constituted.

If a product quality inspection or certifying body issues a untrue inspection result or certification, thus causing a damage, it shall be liable therefor accordingly; if serious damage is caused, its inspection or certification qualifications are revoked.

If a product quality certifying body, in violation of Paragraph 2 of Article 21 of this Law, fails to demand a product which is not in compliance with the certification standards but uses the certification mark to make corrections or to revoke its qualifications for using certification mark according to law, it is liable jointly and severally for with the producer or seller of the product for damage caused to the consumer by the unconformity of the product to the certification standards; and its qualifications for certification are revoked if the circumstance is serious.

Article 58
A social group or social intermediary agency which makes a promise or guarantee over the quality of a product that fails to meet the promised or guaranteed quality requirements, thus causing a damage to the consumer, is liable therefor jointly and severally with the producer or seller of the said product.

Article 59
If an advertisement makes false publicity over the quality of a product, thus deceiving or misleading the consumer, legal liability is demanded for according to the provisions of the Advertising Law of the People’s Republic of China.

Article 60
Raw and supplementary materials, packaging materials and means of production used by producers to exclusively make the products listed in Articles 49 and 51 of this Law or the fake products passing off as the genuine one shall be confiscated.

Article 61
Anyone who knows or should know a product of which production or sale is forbidden by the provisions of this Law but provides convenience for its transportation, keeping or warehousing or provides production technologies to pass off the fake product as the genuine one, is confiscated of all his proceeds from transportation, keeping or warehousing or providing such production technologies and is concurrently imposed a fine exceeding 50% but not exceeding three times of the illegal proceeds; and if a crime is constituted, is demanded for criminal responsibility according to law.

Article 62
An operator in the service sector who uses a product forbidden for sale by the provisions of Articles 49 to 52 of this Law for his business services is ordered to stop the use; and if the operator knows or should know that the product is forbidden for use by the provisions of this Law, he is punished according to the value amount of the product illegally used (including those already used and not yet used) and the provisions of this Law on the punishment for the seller.

Article 63
Anyone who conceals, transfers, sells or destroys a product sealed up or detained by the supervisory department for product quality or by the administrative department for industry and commerce is imposed a fine exceeding the value amount but not exceeding three times of the value amount of the said product; and concurrently is confiscated of his illegal gains therefrom if any.

Article 64
Anyone who, due to violation of the provisions of this Law, shall be liable for civil compensation and pay penalty fines is liable for the civil compensation first if his property is insufficient to pay them all simultaneously.

Article 65
A servant of the people’s government at any level or of any other State organ is given administrative sanctions according to law if he is under any of the following circumstances; and if a crime is constituted, he is demanded for criminal responsibility according to law:

1. to shield or tolerate an act of violating the provisions of this Law in the production or sale of a product;

2. to give information to a party involved in a production or sale activity in violation of the provisions of this Law to help him escape inspection and punishment; or

3. to obstruct or interfere into the investigation or punishment by the supervisory department for product quality or the administrative department for industry and commerce on the act of violating the provisions of this Law in the production or sale of the product, thus causing a serious result.

Article 66
If a supervisory department for product quality asks for samples in excess of the prescribed amount or an inspection fee from a party being inspected in the course of supervisory spot check over the quality of a product, the supervisory department for product quality at the higher level or the supervisory organ orders it to return the samples; and if the circumstance is serious, the principal person directly responsible and other persons directly responsible are given administrative sanctions according to law.

Article 67
If a supervisory department for product quality or any other State organ, in violation of the provisions of Article 25 of this Law, recommends a product of a producer to the social public or takes part in a business operation in the form of supervised production or supervised sale, the organ at the higher level or the supervisory organ orders it to make corrections and to eliminate the influence, and confiscate its illegal gains therefrom if any; and if the circumstance is serious, the principal person directly responsible and other persons directly responsible are given administrative sanctions according to law.

If a product quality inspection body commits any of the illegal acts listed in the preceding paragraph, the supervisory department for product quality orders it to make corrections and to eliminate the influence, confiscate its illegal gains therefrom if any; and concurrently may impose a fine not exceeding one times of its illegal gains thereon; and if the circumstance is serious, its quality inspection qualifications are revoked.

Article 68
A servant of a supervisory department for product quality or of an administrative department for industry and commerce who abuses his power of office, neglects his duty or practices favoritism or irregularities, thus constituting a crime, is demanded for criminal responsibility according law; and is given administrative sanctions according to law if no crime is constituted.

Article 69
Anyone who obstructs, by means of violence or intimidation, the servant of the supervisory department for product quality or the administrative department for industry and commerce to perform the official duty according to law is demanded for criminal responsibility according to law; and if no means of violence or intimidation is resorted to in refusing or obstructing, he is punished by the public security organ in accordance with the provisions of the Regulations on Penalties for Public Security.

Article 70
The administrative penalty of revocation of the business license under this Law is decided by the administrative department for industry and commerce, and the administrative penalties under Articles 49 to 57 and Articles 60 to 63 of this Law are decided by the supervisory department for product quality or the administrative department for industry and commerce according to the spheres of powers provided by the State Council. If laws and administrative regulations contain otherwise provisions on the exercise of the right to give administrative penalties, such provisions of the relevant laws and administrative regulations govern.

Article 71
Products confiscated according to the provisions of this Law are destroyed or disposed of in other methods according to the relevant provisions of the State.

Article 72
The value amount of the product mentioned in Articles 49 to 54, Article 62 and Article 63 of this Law is calculated according to the posted price of the product illegally produced or sold; and in absence of such posted price, is calculated according to the market price of the product of the same type.

Chapter VI Final Provisions

Article 73
Measures for supervision and control over the quality of military industrial products are formulated separately by the State Council and the Central Military Commission.

With respect to the liability for damages caused by nuclear facilities or nuclear products, the provisions of other laws and administrative regulations prevail if they contain such provisions.

Article 74
This Law enters into operation on September 1, 1993.

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Trade Mark Matters in China

If you want to protect your trade mark in China in a cost-effective manner, you need to register it with the China Trademark Office (CTMO).

A trade mark registration can give you access to more simple and inexpensive enforcement options than otherwise available, including  access to criminal remedies against counterfeiters.

Without a registration, enforcement is still technically possible under China’s laws and regulations on the basis of unfair competition, but as in other countries, protection under such laws is much less predictable and normally more costly.

China follows a “first-to-file” rule for obtaining trade marks rights.  This means that generally the person who files their trade mark application first is entitled to register the trade mark.  The person who uses the trade mark first is entitled to register, prior use of a mark affords little or no protection.   It is therefore highly advisable to file applications for trade marks as early as possible, and preferably well before you enter the Chinese market.  The failure to file early leaves the door open to other parties to file before you do.  In some cases, this can lead to the exclusion of your products from entry to the Chinese market because of pre-existing registrations.  There are  numerous examples of cases where trade mark counterfeiters obtained registrations before the true brand owner and threatened infringement actions against distributors of legitimate products.  In such cases, the brand owner is often forced by market realities to pay significant compensation to counterfeiters to procure the assignment of trade mark registrations.

Chinese consumers refer to foreign brands by reference to Chinese versions of the brand, even if there is no “official” Chinese version and advertising uses only the English version.  If you don’t have a Chinese version of your trade mark, you are strongly advised to create one and register it.  Otherwise, the local market will create one for you (which you might not like) and someone else might register it.  It should be noted that the CTMO considers foreign equivalents of marks during the examination process.  For example, the Chinese version of the word SEA could stop the English word SEA from being registered for the same goods or services.

A trade mark application can be filed in China either by filing an application directly with the CTMO or alternatively by extending an existing application or registration to China under the Madrid Protocol.  There are advantages and disadvantages for both procedures which should be discussed with your intellectual property advisor.The procedure for filing a trade mark application in China is similar to worlwide.  However, you have to file through a Chinese trade mark agency which can only act on your behalf upon receipt of a signed power of attorney.  In addition, the applicant must provide its name and address in Chinese. If you do not yet have a Chinese name, the agency can assist with this.

The decision as to which mark to file for and how to describe the goods and  services to be covered should be considered carefully with your advisor.  It is generally preferable in China to file for the version of a mark as it is used and to cover as wide a range of goods and/or services as you reasonably can.

It is also advisable to conduct trade mark searches before filing trade mark  applications to check whether anyone else has already filed for a similar or identical mark which might block your planned application.
It is also important that expert advice is obtained to assess whether the proposed mark might be rejected in China on grounds other than prior conflicts. For example, trade mark applications may be rejected if the word or design elements are considered indistinctive, generic or laudatory.  The same is true in other countries.  However, China has its own particular approach to registrability.

Single colours, smell and sound trade marks are not yet registrable in China. However, it is technically possible to register three-dimensional trade marks as well as combinations of colours.  China does not allow divisional applications, series or defensive trade marks.  Similarly, the owner of a certification trade mark cannot use the mark itself but can only authorise others who meet the required standards to use it. It is also possible for geographical indications to be protected as collective or certification trade marks in China,  For instance, groups of producers of a product where a given quality, reputation or other characteristic is attributable to its location can be granted the exclusive right to use a particular geographic name on the product.

Once an application is approved, it will be published in the CTMO Gazette.  Following gazettal, any party may file an opposition within three months, challenging the application on the grounds of prior marks, distinctiveness or other grounds set out in the Trademark Law.  A registration certificate  will be issued if no opposition is filed within this three-month period.

Chinese trade mark registrations are valid for 10 years and can be renewed for successive 10 year periods.  Trade marks registered through the Madrid Protocol are also valid for 10 years.

It normally takes less than 3 years to obtain a trade mark registration in China, with protection generally effective on the  date of registration, rather than retroactive to the filing date. This underscores the importance of filing early, since trade mark rights are not enforceable in China until the trade mark is registered.

It is worth noting there are strict and sometimes tight time frames for actions associated with trade mark process, for example 15 days turnaround for an applicant to lodge an appeal with Trademark Review and Adjudication Board (TRAB) regarding a ground for rejection. Registering your marks early is clearly the best way to prevent this type of “counterfeiting”.

But if someone applies to register your trade mark, an opposition can be filed once it is gazetted in the Trademark Gazette. Prior to gazettal, it is generally advisable to send an informal letter to the CTMO bringing your rights to the attention of the appropriate examiner provided of course you have prior registrations in China.

An opposition will normally take 3 to 4 years.  The loser in an opposition can file an appeal to the Trademark Review and Adjudication Board which will normally take a further 5 to 7  years to issue a decision.  The decisions of the Trademark Review and Adjudication Board can be appealed further to the Intermediate People’s Court in Beijing.

Trade marks registered by others can be cancelled through the filing of petitions with the Trademark Review and Adjudication Board.  It is normally advisable to support such cancellation actions through extensive evidence of the fame and use of your mark, both in China and globally.

Cancellations normally take five to seven years to be decided, during which time it is normally very difficult to stop the counterfeiter who stole your mark from using it. If someone has registered your mark but has not used it for three years, it is possible to petition the CTMO to cancel the registration on the grounds of non-use. A non-use petition is normally decided within one to two years.

One final fact that should be noted, while not strictly related to the registration of trademarks rights in China, but it does have significant importance over their enforcement, is that customs authorities have been empowered with their own monitoring system to help prevent the export of counterfeited goods. Trademark owners, provided they are registered in China, can now apply for protection of their trademark rights directly at the borders, by having customs agents actively check for potentially infringing exports. Product samples, packaging and even suspected instances of piracy can be submitted before their consideration, which causes them to, ex officio, take measures to curb and stop these kinds of practices when detected.

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Social Insurance

Social insurance is a mandatory, non-profit social security system established by law in China. It is administered by the labour and social security departments.

There are five types of social insurance in China: old-age, medical, unemployment, work-related injury and child-bearing. Among these, the premiums for old-age, medical and unemployment insurance are jointly contributed by the enterprise and the individual, whereas work-related injury and child-bearing insurance premiums are the sole responsibility of the enterprise.

7.3.1 Social Insurance Responsibility

All enterprises must register with the local social insurance institution, participate in social insurance schemes and pay social insurance premiums on a monthly basis. The portion of premium payable by individual workers will be withheld and deducted from their salary and paid to the relevant authorities by the enterprises.

If any changes in the social insurance registration details occur, due amendment must be made to update the record. In the event an enterprise ceases to be responsible for paying social insurance premiums because it has been dissolved, terminated, merged or gone bankrupt, it should promptly cancel its social insurance registration.

7.3.2 Reporting and Payment of Social Insurance

An enterprise must submit its social insurance report, detailed report on social insurance premiums withheld and deducted from its employees, and other relevant information to the local social insurance institution before the 5th day of each month. The institution concerned will check and approve the report within two days. Upon receipt of the approved report, the enterprise should make full payment of social insurance through its bank or by cheque or cash within three days.

7.3.3 Social Insurance Premiums

(a) Basic old-age insurance: In general, the contribution of the enterprise will not exceed 20% (including the portion entered under the individual’s account) of its total payroll. The actual percentages are determined by provincial governments and may vary from place to place. The contribution of the employee to old-age insurance premium may eventually reach 8% of his salary, which is his average monthly salary during the previous year. This amount is also used as the base for calculation of social insurance premiums payable by both the enterprise and the employee.

(b) Basic medical insurance: This is jointly contributed by the enterprise and the employee. In general, the premium paid by the enterprise equals to about 6% of its total payroll, while the employee contributes 2% of his salary.

(c) Unemployment insurance: The enterprise contributes a certain percentage of its total payroll (the percentage varies from place to place, e.g. 2% in Guangzhou), while individual workers contribute about 1% of their salary (e.g. 1% in Guangzhou).

(d) Work-related injury insurance: Premiums vary with the type of risk, type of injury and frequency of occurrence of the occupational disease concerned. Actual premium rates are set by labour departments.

(e) Child-bearing insurance: Premiums are based on a certain percentage of an enterprise’s total payroll (e.g. 0.7% in Guangzhou).

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Employment Procedures

Signing of Labour Contract

The new Labour Contract Law sets out stricter stipulations on the signing of labour contracts between employing units and employees. The new law specifies that an employing unit must sign a written labour contract with its employee within one month after the commencement of service by the employee. If an employing unit fails to sign a written labour contract with an employee who has worked for the employing unit for more than one month but less than one year, it should pay the employee double his wage each month. Any employing unit failing to sign a non-fixed term labour contract with an employee in violation of the Labour Contract Law should pay the employee double his wage each month starting from the date on which the non-fixed term labour contract should have been signed.

In hiring an employee, an employing unit should truthfully inform the employee of the job duties, conditions of work, place of work, occupational hazards, safe production conditions, remunerations and other matters that the employee wishes to know. Meanwhile, the employing unit has the right to know the basic information about the employee which directly relates to the labour contract, and the employee should truthfully provide the same.

On probation, the new Labour Contract Law sets out the following provisions:

For a labour contract with a term of more than three months but less than one year, the probation period may not exceed one month; for a labour contract with a term of more than one year but less than three years, the probation period may not exceed two months; and for a fixed-term labour contract of more than three years or a non-fixed-term labour contract, the probation period may not exceed six months. The same employing unit and the same employee may agree on only one probation period. For a labour contract with a term on project basis or a labour contract with a term of less than three months, no probation period is required. The probation period must fall within the term of the labour contract. If the term of a labour contract covers the probation period only, such probation period is deemed invalid and the term will be the term of the labour contract.

On termination of contract, the new Labour Contract Law provides that an employing unit may unilaterally terminate a labour contract if an employee:

(1) is proved to be not meeting the requirements for employment during the probation period;

(2) seriously violates the employing unit’s rules and regulations;

(3) commits serious dereliction of duty or practices graft, causing substantial damage to the employing unit;

(4) has simultaneously established a labour relationship with another employing unit which seriously affects the completion of his tasks with the original employing unit, or refuses to rectify the matter after the same is brought to his attention by the employing unit;

(5) causes the labour contract to be invalid due to the circumstances¹ specified in item (1) in the first paragraph of Article 26 of the Labour Contract Law;

(6) has his criminal liability pursued in accordance with the law.

On staff layoff, it is provided that:

According to the Labour Law, staff layoff for economic reasons was only allowed if the employing unit was on the brink of bankruptcy or its production or operation had run into great difficulties. Under the new Labour Contract Law, the scope of staff layoff for economic reasons has been expanded:

If, under any of the following circumstances, an employing unit has to reduce its workforce by 20 persons or more or by less than 20 persons but the number accounts for more than 10 percent of its total workforce, the employing unit may only lay off its staff after it has explained the situation to the labour union or to all its employees 30 days in advance, has considered the opinions of the labour union or the employees, and has subsequently submitted the staff layoff plan to the labour department:

(1) restructuring pursuant to the Enterprise Bankruptcy Law;

(2) serious difficulties in production and operation;

(3) changes in production, major technological innovations or adjustments in the operation mode of the enterprise have made it necessary to reduce workforce even after changes have been made in the labour contract;

(4) the economic circumstances at the time of the signing of the labour contract have undergone major changes which have rendered it impossible to execute the contract.

In retaining staff in the course of carrying out layoffs, priority should be given to the following staff:
(1) those who have signed a fixed-term labour contract with a relatively long term with the employing unit;

(2) those who have signed a non-fixed-term labour contract with the employing unit;

(3) those who are the sole wage earner in their families and have to support elders or minors at home.

If an employing unit that has laid off its staff in accordance with the rules recruits staff again within six months, the laid off staff should be notified and should be given priority in employment under the same conditions.

The new Labour Contract Law and the relevant regulations clearly state the mandatory terms and conditions to be included in a labour contract, such as the term of the contract, changes in the contract, dissolving or terminating the contract, as well as compensations in the event of dissolving the contract. The Labour Handbook provided by the local labour department should be used as reference by enterprises in formulating their labour contracts.

7.2.2 Contract Authentication

Contract authentication is a legal process whereby the labour administrative department conducts full-scale examination, verification and validation of all labour contracts signed between an enterprise and its employees. Hence, the process confirms the legality of a labour contract. At present, it is compulsory for all labour contracts signed between enterprises and their staff to be authenticated.

The enterprise should submit the labour contract to the local labour administrative department for authentication within 30 days after the commencement of service by an employee upon signing a labour contract. In the case of collective labour contracts, they should be filed with the local labour administrative department for the record. Collective contracts automatically enter into force 15 days after the date of receipt by the labour department if no objection is raised during that period.

The following documents are required for contract authentication (the list may vary in different localities, so enquiry at relevant local departments is advised):

(a) Labour contract and its copy;

(b) Business licence or its copy;

(c) Proof of identity of legal representative or authorised person;

(d) Identity card or proof of domicile registration of the employee;

(e) Proof of education attainment, medical report, Labour Handbook, and other relevant information of the employee.

7.2.3 Personal Files Management

An enterprise or its resident representative office may entrust a service agency specialised in human resources employment to manage the personal files of its mainland staff. Such agencies should be located at the place of domicile registration or current work place of the staff concerned. The services they offer include verification of the staff’s identity, salary track record and political reports (for overseas travel). Other services such as assessment of technical qualifications, contract authentication and social insurance are also provided.

7.2.4 Foreigners Working in China

According to stipulations, foreigners (including Hong Kong residents) are allowed to work in China. Any organisations or individuals employing foreigners (including Hong Kong residents) in the mainland are required to complete the necessary formalities with the labour bureau which is responsible for granting approval and handling registration. Otherwise, the employees and employers concerned would become “illegal workers” and “illegal employers” and may be fined or even prohibited from working in the mainland.

(a) Departments Responsible for Administration of Employment of Foreigners in China

The labour administration departments at provincial, autonomous region and municipal levels and their authorised labour administration departments at prefecture and city levels are responsible for the administration of employment of foreigners in China.

(b) Criteria for Foreigners Taking up Employment in China

• At least 18 years of age and in good health;
• Possessing the professional skills and working experience required for the work of intended employment;
• No criminal records;
• Having a confirmed employer;
• Having a valid passport or other international travel documents;
• Being able to obtain employment and residence permits for foreigners upon entry into China.

(c) Application Procedures for Foreigners Taking up Employment in China

China has a more liberal and pessimssive foreign labour policy than Hong Kong or other western countries. Hong Kong residents or foreigners wishing to work in the mainland are only required to register with the “foreign labour employment service centre” under the local city-level labour bureau by presenting the following documents:

Category	Hong Kong, Macau and Taiwan Residents	Foreign Nationals
Formalities	Employment Permit for Personnel from Taiwan, Hong Kong and Macau	Employment Permit for Foreigners
Documents Required	Photocopy of business licence (copy) Application Form for the Employment of Personnel from Taiwan, Hong Kong and Macau (one form may by used by the same employer to cover multiple applicants) A completed Taiwan, Hong Kong and Macau Personnel Employment Registration Form affixed with photo plus a colour photo (uncropped) bigger than 1 inch x 1 inch Photocopies of the pages showing personal particulars and latest stamp of the valid entry-exit permit or home visit card of the employee Original of Labour Contract (or letter of appointment specifying the term of employment if a Labour Contract has not been signed) Medical report of the employee	Photocopy of business licence (copy) Photocopies of the pages showing personal particulars and latest visa in the valid passport of the employee Application Form for the Employment of Foreigners in duplicate A completed Foreigner Employment Registration Form affixed with photo plus a colour photo (uncropped) bigger than 1 inch x 1 inch Original of Labour Contract (or letter of appointment specifying the term of employment if a Labour Contract has not been signed) Medical report of the employee
Note	All forms are obtainable from the local city-level labour bureau Standard forms of the labour bureau must be used Four working days are normally required from the date of documentation submission The administration fee varies among different city-level labour bureaus and is usually tens of Rmb a month (e.g. Rmb80 per person a month in Shenzhen)	All forms are obtainable from the local city-level labour bureau Standard forms of the labour bureau must be used Four working days are normally required from the date of documentation submission The administration fee varies among different city-level labour bureaus and is usually tens of Rmb a month (e.g. Rmb 80 per person in a month in Shenzhen)

The term of the employment permit for foreigners (including Hong Kong residents) issued by various mainland cities depends on the duration of the current labour contract and is usually one or two years. It is advisable to apply for extension of the employment permit within one month before its expiration as overdue applications are not only more costly and time-consuming but also involve more complicated procedures. Formalities for extending the employment permit are as follows:

Category	Hong Kong, Macau and Taiwan Residents	Foreign Nationals
Formalities	Extension of Employment Permit for Personnel from Taiwan, Hong Kong and Macau	Extension of Employment Permit for Foreigners
Documents Required	The extension formalities are generally the same for foreigners and personnel from Hong Kong, Macau and Taiwan: A completed Employment Permit Extension Application Form bearing the seal of the employing unit (one form for each applicant) Photocopy of the business licence of the employing unit Photocopy of the passport or entry-exit permit or home visit card of the employee Copy of Labour Contract (or letter of appointment specifying the term of employment if a Labour Contract has not been signed in the first place)
Note	It should be specified in the original permit that application for extension must be made one month before expiration A recent colour photo bigger than 1 inch x 1 inch should be brought along if the extension pages of the Employment Permit have been used up. Medical checks have to be conducted anew in the case of overdue application

1. Item (1) in the first paragraph of Article 26: A labour contract will become invalid or partially invalid if: (1) A party uses such means as deception or coercion, or takes advantage of the other party’s unfavourable position, to cause the other party to sign a labour contract or to make an amendment thereto, that is contrary to that party’s true intent.

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