On March 20, 2024, the State Administration for Market Regulation (SAMR) issued notice to call for public comments on the State Council’s Decision on Adjusting Management Catalogue of Production License and Optimizing Approval Methods for Industrial Products (draft for comments) (hereinafter referred to as “the Draft for Comments). The call for comment period ended on April 3, 2024.
China’s production license management for industrial products is established under the purpose of improving quality and reduce risks or incidents caused by quality shortage or issued, because the industrial products are used in many significant scenarios that may cause serious damage or hazard to the public safety. The management system is established in the year of 2005 with the release and implementation of the Regulation of the People's Republic of China on the Administration of Production License for Industrial Products, and the current effective version of this Regulation is in 2023. Other applying laws and regulations including Measures for the Implementation of the Regulation of the People's Republic of China on the Administration of Production Licenses for Industrial Products (2022 revision), and the higher-level law for both regulations: Administrative License Law of the People's Republic of China (2019 Amendment).
This round of revision for the catalogue adjustment and the approval method optimization is also based on the legal basis. The main content of the Draft for Comment covers three points:
Adjust the production license management catalogue of industrial products.
The production license management does not cover all industrial products but certain types that may initiate potential risks for the public safety or those are of quality concerns based on market feedback that requires stricter management, such products will be listed in the Management Catalogue.
In this Draft for Comments, the Management Catalogue of industrial products has been adjusted from 21 types of 10 categories to 27 types of 14 categories. Six kinds of products are newly added: bottled liquefied petroleum gas regulator, safety hat, steel wire rope, cold-rolled ribbed steel bar, plywood and joinery board.
Improve the fertilizer production license approval method.
The examination and approval method of fertilizer production license is adjusted from notification commitment to examination and approval before licensing.
Further clarify managing level and regulators on production license approval for industrial products
The production license approval should be managed by the corresponding regulators on provincial level. The authority for examining and approving industrial product production licenses that directly affect the safety of people's lives and property and public safety shall not be delegated to lower levels.
The administration of production licenses for industrial products shall be organized and implemented by SAMR, and the relevant ministries of the State Council shall cooperate well.
For foreign stakeholders, the Draft for Comment mainly deliver the signal of a stricter management on certain industrial products, and an emphasis on the quality importance and the jurisdiction of the regulators. Such adjustments are mainly caused by the quality incidents, feedback and concerns raised from the market in recent years, (e.g.: fertilizers are suggested in this Draft for Comments to have stricter approval measures due to the lack of truthfulness in the notification commitment made by some producers, and the rising of quality issues or damages in recent years). The fact that China market is pursuing a higher quality shall create a better market environment for all manufacturers of relevant products that have high-level quality control for their products.
If you need the revised full list of the catalogue, or have any question on the topic, please contact: contact@bestao-consulting.com.