Summary of Law Updates:

Labour

1. < Measures of Social Medical Insurance in Guangzhou > (2015-07-01)

The Measures of Social Medical Insurance in Guangzhou (hereinafter referred to as Measures) was approved by the People’s Government of Guangzhou on 12th January, 2015 and it has come into force on 1st July, 2015. This Measures is applicable to the participation, service, supervision and administration on social medical insurance in Guangzhou Administrative Region.

The Measures made significant adjustments to a number of policies of medical insurance, including,

The freelancers shall participate in either employee medical insurance or citizen medical insurance. In a medical insurance year, the upper limit of aggregate medical expenses paid by Employee Serious Disease Medical Subsidy Fund has been adjusted to 3 times of the average salary of employees in the city of the prior year. This adjustment enables an automatic mechanism for future adjustments.

The most prominent point of the Measures is that the freelancers with household registration of Guangzhou may participate in employee social medical insurance or social medical insurance for urban and rural residents. These freelancers shall effect the change within 3 months since the Measures’ enforcement. In case of inaction, local tax bureau will transfer all the “Freelancer Medical Insurance” to employee social medical insurance. The migrant employees (without household registration of Guangzhou ) who had participated in “Freelancer Medical Insurance” in enterprises in Guangzhou, shall participate in employee social medical insurance timely and pay insurance premiums in full through the same enterprise since 1st July, 2015.

Business Ethics

1. < Advertisement Law of the People’s Republic of China > (2015-09-01)

The amended Advertisement Law of the People’s Republic of China (hereinafter referred to as Advertisement Law) was gazetted by the Standing Committee of the National People’s Congress on 24th April, 2015 and it will come into force on 1st September, 2015.

The amendment of the Advertisement Law improves the regulatory system for advertisement, ensures and standardizes the enforcement by administrative departments, and increases punishment against fraudulent representations.

As per the Advertisement Law, when an enterprise advertises, it shall, abide by the laws and regulations and be in good faith, fairly compete; be responsible for the truthfulness of the contents; ensure the advertisement is absent of any false or misleading contents; not be allowed to denigrate the products or services of other producers or operators; not be allowed to perform improper competition in any form.

2. < Provision on Prohibiting to Abuse Intellectual Property Rights to Preclude or Restrict Competition > (2015-08-01)

The Provision on Prohibiting to Abuse Intellectual Property Rights to Preclude or Restrict Competition (hereinafter referred to as Provision) was approved and gazetted by the state General Administration for Industry and Commerce on 7th April, 2015 and it will come into force on 1st August, 2015.

The Provision provides prohibitive provisions on non-price abuse of intellectual property rights to preclude or restrict competition. Total nineteen (19) clauses in six (6) aspects.

Health and Safety

1. < Provisions on Safety Training for Production and Business Entities > (2015-07-01)

The amendment of Provisions on Safety Training for Production and Business Entities (hereinafter referred to as Provisions) was reviewed and approved by State Administrator of Work Safety on 26th February, 2015, and it has come into force on 1st July, 2015. The main changes and impact of Provision are as follows,

• The safety education and training for dispatched employees and interns shall be provided by the production or business entity. The entity’s responsibility for safety education and training for dispatched employees and interns becomes explicit.
• The production or business entity shall adopt unrestrictive ways of delivery of safety education and training for its employees and ensure the training effect.
• When the production or business entity employs agencies to conduct safety training, it shall still take the responsibility for the safety training.
• The employee who was not trained and qualified but engaged into production will be regarded as potential accident of production safety, and the supervision department shall order the production or business entity stopping the unlawful act immediately and rectify it within a time limit. Penalty shall be applied pursuant to law.

2. < Provisional Regulation on Safety Management and Supervision of Operation in Confined Spaces for Industry and Trade Enterprises > (2015-07-01)

The amendment of Provisional Regulation on Safety Management and Supervision of Operation in Confined Spaces for Industry and Trade Enterprises (hereinafter referred to as Provisional Regulation) was reviewed and approved by State Administrator of Work Safety on 26th February, 2015, and it has come into force on 1st July, 2015. The main changes and impact of Provisional Regulation are as follows,

• For enterprise that did not set up safety warning signages in the workplace of confined space, or not provide adequate personal protective equipments as required, the person(s) who are directly in charge and other directly responsible personnel shall be penalized in the range of RMB10, 000 to RMB20,000.
• For enterprises that do not provide safety training to relevant employees or violate other related provisions, the upper limit of penalty for it has been increased from RMB 20,000 to RMB100,000, and the person(s) who are directly in charge and other directly responsible personnel shall be penalized in the range of RMB10, 000 to RMB20,000.

3. < Provisional Regulation on Supervision and Management for Major Hazard Installations of Hazardous Chemicals > (2015-07-01)

The revision of Provisional Regulation on Supervision and Management in Major Hazard Installations for Hazardous Chemicals (hereinafter referred to as Provisional Regulation) was reviewed and approved by State Administrator of Work Safety on 26th February, 2015, and it has come into force on 1st July, 2015. The main changes and impact of Provisional Regulation are as follows,

• The upper limit of penalty to the enterprise that is in breach of the law is increased from RMB100,000 to RMB200,000, and a new provision added that the person(s) who are directly in charge and other directly responsible personnel shall be penalized in the range of RMB10,000 to RMB50,000.
• An enterprise shall be penalized if fails to carry out safety assessment and evaluation, registration and archiving, safety monitoring and control, to establish emergency plan, set up warning signages, or to conduct periodic testing and inspection for its equipments and facilities, for major hazard installations. For breaches constituting a crime, it shall be prosecuted for one’s criminal liability according to related provisions of the Criminal Law of the People’s Republic of China.

Environment

1. < Discharge Standards of Water Pollutants for Dyeing and Finishing of Textile Industry > (GB 4287-2012) (2015-06-18)

The Discharge Standards of Water Pollutants for Dyeing and Finishing of Textile Industry （GB 4287-2012） (hereinafter referred to as Standard) was amended and issued jointly by the Ministry of Environmental Protection of the People’s Republic of China and General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China in 2012, the Standard apply to discharge management of water pollutants for dyeing and finishing of textile industry.

A Notice on Amendment List of the Standard (hereinafter referred to as Amendment List) was issued on 31th March, 2015 by Ministry of Environmental Protection of the People’s Republic of China according to the actual situation of textile industry zone and the adjustment requirements for indirect discharge of water pollutants. The discharge standards of some pollutants are adjusted according to the Amendment List.

After the Amendment List issued in March 2015, a Notice of Implementation Requirements on Adjusting Partial Indicators of the Standard (hereinafter referred to as Notice) was issued on 18th June, 2015 by the Ministry of Environmental Protection of the People’s Republic of China. The discharge standards for some pollutants are further adjusted according to the Notice which has come into force on 18th June, 2015. Comparing to the revision in March 2015, the discharge standards issued in June 2015 are less stringent, and the main changes are as follows,

2. < Emission Standards of Pollutants for Inorganic Chemical Industry > (GB 31573-2015) (2015-07-01)

The Emission Standards of Pollutants for Inorganic Chemical Industry （GB 31573-2015） (hereinafter referred to as Standard) was approved by Ministry of Environmental Protection of the People’s Republic of China on 3rd April, 2015, it has come into force on 1st July, 2015. The Standard provides the emission limit, requirements of monitoring and supervision of water and air pollutants for enterprises in inorganic chemical industry. This Standard is not applicable to the emission management for industries of water pollutants and air pollutants for sulfuric acid, hydrochloric acid, nitric acid, sodium hydroxide, sodium carbonate, calcium carbide, inorganic phosphorus, inorganic paints and pigments, phosphate fertilizer, nitrogenous fertilizer and potash fertilizer, potassium hydroxide and non-ferrous metals.

New enterprises shall follow the Standard from 1st July, 2015, while the existing enterprises shall follow it from 1st July, 2017, the emission controlling of water pollutants and air pollutants shall follow the provisions of this Standard, instead of previously the relevant provisions of Integrated Wastewater Discharge Standard (GB 8978-1996), Integrated Emission Standard of Air Pollutants (GB 16297-1996) or Emission Standard of Air Pollutants for Industrial Kiln and Furnace (GB 9078-1996).

If the State has issued specific emission standard (such as Emission Standard of Pollutants for Sulfuric Acid Industry (GB 26132-2010)) for inorganic chemical industry, the provisions of specific emission standard shall be implemented, instead of this Standard.

3. < Emission Standards of Pollutants for Synthetic Resin Industry > (GB 31572-2015) (2015-07-01)

The Emission Standards of Pollutants for Synthetic Resin Industry （GB 31572-2015） (hereinafter referred to as Standard) was approved by Ministry of Environmental Protection of the People’s Republic of China on 3rd April, 2015, it has come into force on 1st July, 2015. The Standard provides the emission limit, requirements of monitoring and supervision of water pollutants and air pollutants for enterprises in synthetic resin industry (except the PVC resin).

New enterprises shall follow the Standard from 1st July, 2015, while the existing enterprises shall follow it from 1st July, 2017, the emission controlling of water pollutants and air pollutants shall follow the provisions of this Standard, instead of previously the relevant provisions of Integrated Wastewater Discharge Standard (GB 8978-1996) or Integrated Emission Standard of Air Pollutants (GB 16297-1996).

The monomer production installation in synthetic resin shall follow the Emission Standard of Pollutants for Petroleum Chemistry Industry (GB31571-2015), the production installation of PVC resin shall follow the Discharge Standard of Water Pollutants for Caustic Alkali and Polyvinyl Chloride Industry (GB15581-95).

China Minimum Wage Standard Update – July 2015

About Intertek

Intertek is a leading Total Quality Assurance provider to industries worldwide. Our network of more than 1,000 laboratories and offices and more than 100 countries, delivers innovative and bespoke Assurance, Testing, Inspection and Certification solutions for our customers’ operations and supply chains. Intertek Total Quality Assurance expertise, delivered consistently with precision, pace and passion, enabling our customers to power ahead safely.

www.intertek.com.cn