[08-23 10:06]　Wang Dianhua, deputy director of Shandong Provincial Bureau of Quality and Technical Supervision and spokesman:Friends of the media,

　　Good morning! Welcome to the conference. Thank you for your long-lasting energetic support to our work！

　　Today we invited you here to announce to the society through you that Premier Wen Jiabao signed the 440th decree of the State Council, formally promulgating Regulations of the People’s Republic of China Concerning License for the Manufacture of Industrial Products, which was passed by the 97th routine meeting of the State Council and which will be formally enforced nation-wide. The promulgation of Regulations of the People’s Republic of China Concerning License for the Manufacture of Industrial Products is a great event in our country’s economic life and a new milestone for the administrative work of the license for the manufacture. It is an important measure for the state to maintain the order of market economy, to improve the ability of governments at all levels to exercise their powers and to make perfect the socialist legal system. The promulgation and enforcement of the regulations will certainly enhance the whole level of our country’s product quality security and exercise an important and far-reaching influence on our country’s economic construction and social development in the new century.
[08-23 10:09]　1. Main content of the regulations

　　The regulations are the first set of administrative regulations with administrative license as its main content after the promulgation and enforcement of the Administrative License Law. The regulations have seven chapters and seventy clauses altogether. The main content is “three goals, four unifications, six types of products and seven rules.” The three goals are 1) the work of license of the manufacture must be humanistic and maintain the safety of people’s lives and health, 2) the work of license of the manufacture must actively cooperate with the implementation of the state’s industrial plicy, rely on the compulsive means of administrative license to energetically support and popularize advanced technological equipment and products that save energy, reduce consumption of raw materials, save water and protects environment, compel the elimination of obsolete productive means and technologies that consumes much energy, cause much pollution and have poor qualities, and try to raise the whole productivity of the industry, promote healthy orderly and sustained development, 3) the work of license of the manufacture must advance with the times and make dynamic management of the product catalogs under the license of the manufacture, with the national economic construction as the central task. The four unifications are that 1) unification of catalogs: industrial product catalogs under the license shall be made by the department in charge and promulgated by the State Council, 2)unification of the requirements for inspection: the department in charge of the license makes and promulgate requirements for inspection of the products listed in the catalogs and limits enterprises’ applications for the license, 3) unification of the mark of the license: the mark and form of the license will be decided and announced by the responsible department of the State Council, 4) unification of supervision and management: the work of license of the manufacture concerning enterprises listed in the catalog, their employees and inspection organs and their personnel shall be managed by the department responsible for industrial products above the county level. The six types of products are 1) processed food directly related to human health, 2) products which possibly endanger the safety of humans and properties (pressure pots, electric blankets, gas geysers, etc), 3)products related to financial and communications security, 4) products such as safety nets, safety helmets and construction buckles, 5) products which might affect production safety and public safety, 6) other products which law and administrative regulations require to be licensed according to the regulations. The seven rules are license and mark rule, rule of regular report by the enterprises, rule of regular and irregular inspection, rule of supervision of the inspection organs, rule of supervision and inspection of archives and public access to the archives, rule of complaint and information, and rule of strengthening investigation and treatment by means of material evidence.

[08-23 10:13]　2. The function and significance of implementation of the regulations

　　1) The embodiment of adhering to the idea of government for the people

　　It is a typical matter of administrative permission that the state enforces management of industrial products by license of the manufacture, which is not only concerned with people’s health security and the healthy development of national economy, but also concerned with the immediate interests of the persons related to the administration. The revision of the regulations is the result of more than twenty years’ precious experience. The regulations establish the management by license of the manufacture of industrial products concerning food safety, bodily and property safety, financial safety, communications safety, labor safety, production safety and public safety, clarifies that the work of license of the manufacture must observe the principles of being scientific and just, being open and transparent, procedural legality, convenience for the people and high efficiency, regulate such aspects and links as the range to be adjusted concerning the work of license of the manufacture, the bodies to implement the regulations, the license-issuing procedure, and conditions for the license, lay down specific requirements for simplifying procedures, raising working efficiency and providing quality service and at the same time make detailed rules for the legal responsibility and strengthening supervision regarding the implementation of license of the manufacture. These are the concrete embodiments of government for the people, which enables the work of license of the manufacture to well realize, maintain and develop people’s fundamental interest.

[08-23 10:16]　2) Guaranteeing the quality safety of important industrial products

　　Due to the fact that some aspects of our country’s present productivity are relatively low, quite a number of enterprises have backward and old equipment and productive technologies and lack the necessary equipment for quality inspection, the managerial staff and employees have a faint consciousness of quality, and the managerial basis is weak, which lead to the low quality of these enterprises’ products. Therefore, the government must strengthen the supervision of important products which are directly related to public safety, human health, and the safety of life and property, and, by means of implementing the system of license of the manufacture, urge enterprises to raise the level of productive technology and equipment, make perfect means of product inspection, establish the system of quality management, and really enhance the quality level of products so as to prevent from the sources the manufacture of fake and poor products and guarantee the quality safety of important industrial products which are directly related to public safety, human health, and the safety of life and property.

　　3) Carrying out the state’s industrial policy and promoting the healthy and harmonious development of market economy

　　Implementing the system of license of the manufacture of industrial products has a great effect on carrying out the state’s industrial policy and quickening the adjustment of economic structure. Since the reform and opening-up, our country’s economy presents an unprecedented situation of fast development and the GDP has risen to the world’s forefront. However, at the present stage, there is the problem of irrational economic structure, which is reflected by the obvious surplus of many traditional industries’ ability to supply, though their overall equipment and technology levels are low, their products are poor in quality and their utilization ration of energy is low. To realize the sustained, fast and healthy development of national economy, we must make strategic adjustments of the economic structure and quicken industrial reorganization and reform and the optimization and up-grading of structure. By means of applying combined economic, legal and necessary administrative measures, the state must close down the enterprises that manufacture low-quality products, waste energy, pollute environment, and do not have conditions for safe production, eliminate backward equipment and technologies, reduce some industries’ surplus productivity, realize the technical reform of the traditional industries and the development of emerging industries, and adjust and up-grade industrial structure. In the new situation, government’s guidance is indispensable for the establishment and perfection of the system of socialist market economy and the system of license of the manufacture is just the government guiding measure for the safety of product quality, which can function to prevent poorly made products from manufacture and circulation, so as to promote the healthy and orderly development of socialist market economy. As one of our country’s measures of macroeconomic regulation, the system of license of the manufacture is to closely center around the theme of adjustment of economic structure, carry out the idea of scientific development and play an active role for the realization of sustained development of national economy.

[08-23 10:20] 3 Some important things to do in order to guarantee the implementation of the new regulations

　　Our province is known as a big province economically, with a GDP of 1,549.07 billion yuan realized in 2004, ranking third after Jiangsu and Guangdong. In the first half of this year, 23,000 large-scale enterprises realized an added value of 409.936 billion yuan, increasing by 28.9%, exceeding Jiangsu and Guangdong for the first time and ranking first nationally. There are altogether 704,947 large, medium and small enterprises registered at present in our province, of which, 9,052 are from the information industry, 3,081 are from the automobile industry, 1,136 are petrochemical producers, 1,117 are from the industry of electrical household appliances, more than 10,000 are from the food industry, 7,240 produce 28 types of food governed by the license, 20,644 are from the clothing and textile industry, 3,652 are from the industry of agricultural materials, and 16,681 are from the building material industry. With so many enterprises and products, management by license of the manufacture according to the regulations is indeed a formidable job.
[08-23 10:19]　1) To strengthen the three fundamental establishments to guarantee the implementation

　　The first thing is to strengthen the establishment of working mechanism, effectively integrate the present work resources and raise work efficiency. In terms of mechanism, we abolish the present organizations, set up license offices at provincial and municipal levels, and establish independent inspection departments in public institutions, with specially trained personnel engaged in the issue of the license. At the same time, we have laid down such working norms as Issuing Procedures of Licenses of the Manufacture of Industrial Products of Shandong Province and Managerial Rules for Product Inspection Department of License of the Manufacture of Industrial Products of Shandong Province to strengthen the establishment of rules and guarantee the implementation of work with mechanism and rules.

　　The second thing is to strengthen the establishment of inspection organizations. The inspection of products is an important link in the work of license of the manufacture. We invested a huge sum to set up 18 food general laboratories, which are suitable for inspecting most of the products which have market access. At the same time, the central bureau has approved the construction of the national food laboratory, which provides strong support for the work of license of the manufacture of industrial products.

　　The third thing is to strengthen the establishment of the teams. The key to the implementation of the work of license of the manufacture is to establish a politically reliable and high-quality managerial team, a highly disciplined, just and incorruptible executive team, a serious, responsible team of inspectors, and a skilled expert team of examiners. We have completely reorganized and trained the four teams of our province, and enhanced their qualities through a series of measures such as competition for the posts, which laid the basis for the implementation of the work.

[08-23 10:18]　4) To strengthen the investigation and treatment of enterprises without licenses to ensure the implementation of the work

　　One breakthrough of the new regulations in the management by license of the manufacture is strengthening the investigation and treatment of enterprises without licenses. It is stipulated that the fine for unlicensed products has been increased from 15-20% percent of the goods value to the range between the equivalent value of the goods and three times of the goods value. An added regulation is that unlicensed products and illegal gains should be confiscated. The range of penalty governed by the license of the manufacture has extended from production and sale to include consumption. Another added regulation is that the use of unlicensed products in business activities should be investigated and treated. At the same time, it is stipulated that it is an act of administrative omission if unlicensed production is found out but not legally investigated and treated and the persons concerned will be held responsible. Only by firmly banning the enterprises that are unable to meet the requirements for license can the effective implementation of the system of license of the manufacture be guaranteed and the authority of the work of license of the manufacture.

　　Our province will seriously carry out the new regulations and make our contributions to the maintenance of the economic order, the promotion of the healthy and orderly development of our province’s economy and the construction of the harmonious society.
August 23, 2005

[08-23 10:21]　2) To strictly carry out the regulations and strengthen the implementation of the after-license work

　　According to the new regulations, the rules must be made public in the process of implementing license of the manufacture. Eight things must be made public to the society: the names of the licensed items, evidence, conditions for application, numbers, inspector’s institution, procedure, time limits, and result of examination. The procedure must be strictly legal and every link such as acceptance of applications, on-the-spot examination, product inspection, and after-license supervision should be carried out according to the limits of authority, procedures, manners and time limits stipulated by the regulations to ensure procedural legality. Specially strict inspection should be made of the necessary conditions for ensuring the enterprise’s product quality and licenses should be issued strictly according to the standard.

[08-23 10:22]After-license supervision should be strengthened and the quality of the licensed products must be stable and up to the standard. At present, our province has issued 7,915 licenses, of which 4,468 are for industrial products and 3,447 are for food production. With the further carrying out of the work of licenses for such products as the 13 new types of food, man-made plates, eyeglasses and dangerous chemicals, more enterprises will obtain licenses, and it is expected that the number will exceed ten thousand. The supervision and management of the licensed enterprises is a formidable task, which mainly takes the form of regional supervision and management. Regular and irregular supervision and inspection will be made of the enterprises and the enterprises are required to present quality reports to the departments of quality and technical supervision to make sure the quality of their products is stable and up to the standard. The idea of “attaching importance to issuing licenses and neglecting supervision” must be dispelled, much attention must be paid to the treatment of the products which are not up to the standard after selective examination and regular inspection, and the enterprises must be urged to make improvements.

[08-23 10:24]3) To unite responsibility and right and strictly affix responsibility to ensure the implementation of the work People engaged in the management of administrative permission must makes inspections and issue licenses according to the conditions, procedures and time limits required and they should not lower the standard, set up other limits, practice fraud, still less seek personal gains by issuing licenses. Inspection departments and inspectors are required to make careful and responsible inspections according to the principle of being objective, just, exact and reliable, without delay or creating difficulties for the enterprises. They are required not to be engaged in selling the licensed products, still less recommend, supervise the manufacture and sale of the licensed products. All the units are required to make use of the implementation of the new regulations together with the activity of “the year of improving professional ethics”, start from the examination, approval and issue of the licenses of the manufacture of industrial products, set up halls of administrative affairs, straighten out working procedures, regulate internal management, try to create civilized windows and mold departmental images. Departments of discipline inspection and departments of supervision should strengthen their supervision and inspection of license issue. Those who have broken the rules will be investigated for their responsibilities and their leaders’ responsibilities strictly in accordance with the law and discipline as soon as they are found out.

That is the news. Thank you.
[08-23 10:26]Now reporters begin asking questions.

[08-23 10:27]A moment later we will broadcast live questions answered by Wang Dianhua, deputy director of Shandong Provincial Bureau of Quality and Technical Supervision and spokesman.

[08-23 10:28]Reporter from dzwww.com: Hi Mister Wang. I’d like to know what is special about the new regulations in comparison with the regulations enforced in 1984.

[08-23 10:52]Wang Dianhua, deputy director of Shandong Provincial Bureau of Quality and Technical Supervision and spokesman: The Regulations of the People’s Republic of China Concerning License for the Manufacture of Industrial Products newly promulgated by the State Council differ from the 1984 version in nine points.

[08-23 10:52]First, they differ in name. The name of the old version is Proposed Regulations. The present regulations, that is, Regulations of the People’s Republic of China Concerning License for the Manufacture of Industrial Products are different in name, emphasizing the idea of management, more operative and more detailed in some of the regulations.

[08-23 10:52]Second, industrially processed food is listed as the first of the six major types in the range governed by the license, while this item is not included in the old version. Now food is not only included but also listed as the first item, which shows the State Council pays much attention to the safety of food consumed by the people.

[08-23 10:52]Third, it is stipulated that the national department and provincial department are in charge of issuing the license and the work is done at three levels. In the past, all the licenses for industrial products were issued in the name of the responsible department of the State Council and the State, but now licenses of some products are transferred to the provincial department. The licenses are issued at provincial and national levels and the work is done at municipal, provincial and national levels

[08-23 10:52]Fourth, the time to issue the licenses is greatly reduced from six months in the past to the present 60 days stipulated by the new regulations. Decision must be made not to allow the manufacture within 60 days since the reception of the application and failure to make the decision is omission. Here some more time is needed to inspect some special products and it takes some time to obtain some physical data through product inspection.

[08-23 10:53]Fifth, the new regulations strengthen administrative punishment. One thing is increased fines and the other is increased range of punishment. Punishment was applicable to the two spheres of production and sale and now it also applies to the sphere of consumption.

[08-23 10:53]Sixth, unlicensed production in economic activities will be punished while this was not so in the past. They just bought and used unlicensed products without being held responsible. Here I mean enterprises not individuals.

[08-23 10:53]Seventh, the new regulations reform the catalog of licenses products. In the past, the national responsible department issued the catalog and now the department in charge makes advice and suggestions to be studied by a special department of the State Council and the catalog is issued in the name of the State Council.

[08-23 10:53:42] Eighth, the new regulations strengthen the management of organs that inspect the licensed products. They must make reports of inspection within the specified time and those who create difficulties for enterprises will be severely punished.

[08-23 10:53]Ninth, the new regulations stipulate the license have an original and a duplicate, both having equal legal effect and the regulations also stipulate what mark should be used. It is possible that all the licensed products will be marked with QS, and the form or color of the mark for industrial products might be different, but the mark will be the same.

[08-23 10:54]Reporter from Shandong People’s broadcast Station: Hi Mister Wang. I have noticed that some items in the Regulations of the People’s Republic of China Concerning License for the manufacture of Industrial Products are concerned with such foods as meat products milk products, drinks that are closely related to the masses of people. How will some small workshops and small enterprises be managed? Will they be licensed?

[08-23 10:54]Wang Dianhua, deputy director of Shandong Provincial Bureau of Quality and Technical Supervision and spokesman: That is a real situation in our country. There are many different types of food and the Chinese have dietary habits different from those of westerners. It is a fact there are small workshops. The Central Bureau of Quality and Technical Supervision will soon come up with a detailed regulation concerning small workshop but the concrete plan is not yet available.

[08-23 10:54]According to the spirit of the speech made by the head of the Central Bureau, there are three things to do concerning your question: first, the department of industrial and commercial management will be responsible for the business licenses for the small workshops, second, the health department will be responsible for their health licenses, and third, the department of quality and technical supervision will be in charge of their licenses of the manufacture. The certificates will be issued according to the division of labor of these departments. They should be responsible for their work and they should be held responsible if any thing goes wrong with the enterprises. There are at present a lot of unlicensed enterprises and enterprises that are not qualified to be license. According to the state’s regulations, under the leadership of local governments, the department in charge are responsible for the reform of these enterprises

[08-23 10:55]Zhuang Ligui, director of the news office of Shandong Provincial Government and spokeswoman of Shandong Provincial Government: That’s the end of the conference. Thank you!

[08-23 10:55]The End