Shanghai Administrative Bureau of Industry and Commerce issued Hugongshangguan[2017] No. 21 to the local branches for the detailed arrangement on the AIC random inspections. Shanghai Dongjin concludes the main points as follows.

Government’s attitude on the random check

• The matters to be checked are set based on the checklist from the central AIC and could be increased according to Shanghai situation;
• The matters to be checked are to be adjusted according to the changes of the applicable laws and regulation from time to time;
• The matters to be checked should be strictly in compliance with the checklist. For the matters which are not included into the list, it cannot be random checked by the authority. For the matters which are included into the list, except for any special situation, it should be random checked once every year.

The below matters are listed on the random inspection list (the first version) by SAIC.

1. Inspection on the illegal activities during the direct selling:

• Whether any vital change has been approved?
• Whether the activities are exceed its business scope or the marketing activities will mislead or fraud the consumers?
• Whether the company has illegal hire the employees or has the improper trainings?
• Whether the company breaches the regulations on the products changing or returning, or the guarantee amount?
• Whether the company has the information recorded and published on time?

2. Inspection on the quality of the products in the field of distribution:

• Whether the eliminated products, the expired products or deteriorated products are still on sale?
• Whether the products are in the proper package and have the correct mark?
• Whether the operator sells any prohibited products?
• Whether the resource for products is legal and has the proper policy for the stock checking and acceptance?
• Whether the lessor of the shop counter, the holder of the show, the platform provider for online transaction, the operator for the TV shopping have the record on the checking for the qualification on who wants to access to such platform?

3. Inspection on the activities which infringe the consumers’ rights:

• Whether the service and product information are true, complete authentic and without misleading?
• Whether the operator to use the standard terms, notification, statement to exclude or restrict the consumers’ rights or add their right?

4. Inspection on the activities which breach the Regulations of Shanghai Municipality on the Protection of Consumer’s Rights and Interests:

• Whether online service providers apply for the relevant license and have it marked clearly on the website?
• Whether the operator was have it service details marked clearly in its business area, especially during the franchising and renting the shop counter situation.
• It is a special clause is added by SAIC.

5. Inspection on the qualification involving in the auction activities;

6. Inspection on the illegal transaction on the wild animals, wild animal products or sell the tool for catching the wild animals;

7. Inspection on setting up culture relics stores without authorization or involving in the relics business without permission;

8. Inspection on the annual report: Whether the annual report was filed on time and the information filed is correct?

9. Inspection on the registration information: Whether the application information is true? Whether the business activities are incompliance with the business scope?

10. Inspection on the illegal activities during the advertisement:

• Whether the publication of the advertisement is registered?
• Whether the advertisement operation and promulgator have set up the policy for advertisement registration, reviewing and file management?

11. Inspection on the illegal activities on the trademark:

• Whether the trademark agent violates the order in the trademark market: such as to make the fake application documents, to forestall the registration of the trademark and etc?
• The use of trademark: whether the unregistered trademark is marked as the registered trademark? Whether the trademark is illegally marked as the famous trademark during the business activities and etc?
• The license of trademark: whether the trademark under the licensing is not clearly marked its licensee and the country of origin?
• Whether the use of collective mark and certification mark is incompliance with the relevant regulation?
• Whether the print of trademark is incompliance with the relevant regulation?

12. Inspection on the illegally use of the Olympic marks or other special marks:

Whether the mark was changed without permission? Whether the use of the mark exceeds the recorded scopes and the services?

13. Inspection on the activities of the use of the Shanghai famous trademark:

• Whether the changes of trademark have been recorded? Whether there is any abusing use of the Shanghai famous trademark?
• It is a special clause is added by SAIC.

Dongjin comments:

The company should take the correct attitude on the random check by the government. Shanghai Dongjin helped several clients to complete the government random check. If you have any questions, please send the email to me.

Ms. Jojo Hu           

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com