Notice of the General Office of Shanghai Municipal People’s Government on Transmitting the Procedures of Shanghai Municipality on the Inquiry and Use of Enterprises’ Bad-credit Information Made by the Municipal Commission of Economy and Informatization

(February 16, 2013)

SMPG GO G [2013] No. 7

Attention: all District and County People’s Governments, and all relevant Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:

The Procedures of Shanghai Municipality on the Inquiry and Use of Enterprises’ Bad-credit Information made by the Municipal Commission of Economy and Informatization have been approved by the Municipal People’s Government. We hereby transmit them to you and request you to implement them conscientiously.

Procedures of Shanghai Municipality on the Inquiry and Use of Enterprises’ Bad-credit Information

Article 1 (Purposes and Basis)

With a view to accelerating the construction of social credit system in this Municipality, establishing and perfecting the mechanism of the record, sharing and using of enterprises’ bad-credit information, creating a social credit environment of “benefits for the trustworthy, penalties on bad-credit”, and promoting the regulated development of the economy and society, these Procedures are formulated in accordance with the Opinions on Further Strengthening the Construction of the Social Credit System in Shanghai, and the Action Plan (2013-2015) for the Construction of the Social Credit System in Shanghai.

Article 2 (Application Scope)

These Procedures apply to the record, sharing and use of enterprises’ bad-credit information within the administrative area of this Municipality.

The enterprises mentioned in these Procedures refer to the corporate enterprises and non-corporate enterprises that engage in production and operation activities within the administrative area of this Municipality.

The enterprise’s bad-credit information mentioned in these Procedures refers to those information produced or obtained by the administrative agencies at all levels and the organizations that have, according to law, the function of administrating social public affairs in this Municipality (hereinafter jointly referred to as the administrative departments) in the process of performing their duties, which may have a negative influence on the enterprises’ credit status, and involve the enterprises’ illegal or rule-breaking acts in production and operation activities.

Article 3 (Management Responsibilities)

The municipal administrative department of credit information collection is responsible for organizing and promoting the construction of the mechanism of this Municipality for recording, sharing and using enterprises’ bad-credit information, as well as conducting assessment and supervision of all municipal relevant departments and all district/county people’s governments in their recording, sharing and using enterprises’ bad-credit information.

The administrative departments are responsible for recording, sharing and using the enterprises’ bad-credit information within their respective purviews.

Article 4 (Operation and Maintenance of the System)

The management, operation and maintenance subject of the Municipal Corporate Information Sharing and Application System (hereinafter referred to as the MCISA) is responsible for collecting the enterprises’ bad-credit information and maintaining the system. The specific procedures on information collection and system maintenance shall be separately formulated by the Municipal Commission of Economy and Informatization jointly with relevant departments.

The operation and maintenance subject of the municipal public credit information service platform is responsible for providing, according to the provided procedures, the general public with inquiry service on enterprises’ bad-credit information to the general public, accepting objection requisition and offering feedback on the handling results.

Article 5 (Collection of Bad-credit Information)

In one of the following cases, the administrative departments shall submit to the MCISA the relevant information as an enterprise’s bad-credit information:

1. The enterprise is subject to administrative punishment;

2. The enterprise violates the provisions on notification-commitment examination and approval, or withholds relevant information or provides false materials in applying for administrative examination and approval;

3. The enterprise is prohibited by the administrative departments from entering the fields such as construction engineering, food safety, drug safety, transportation and communications, safe production, fire safety, industry and commerce administration, product quality, mass organization and civil affairs, government procurement, and environmental protection;

4. The enterprise has incurred liability accident (s) in fields such as safe production, food safety, drug safety, product quality, construction engineering, transportation and communication, fire safety, and environmental protection;

5. The enterprise is prosecuted for criminal liability; or

6. Other cases that the administrative departments consider, according to laws and regulations, and other provisions, to deserve information submission.

Article 6 (Connection Between Enterprises’ Bad-credit Information and Responsible Individuals)

The administrative departments may, according to relevant provisions of the State and this Municipality, incorporate the enterprise’s bad-credit information into the personal credit record of the enterprise’s main person-in-charge and the person directly responsible for the bad-credit act, and submit such information to the Municipal Real Population Service and Management Information System.

Article 7 (Inquiry for Bad-credit Information)

The administrative departments shall take the initiatives in inquiring for the enterprise’s bad-credit information in such work as routine supervision, administrative examination and approval, government procurement, bidding and tendering, commending and awarding, policy support, performance appraisal, and financial aids.

Article 8 (Use of Bad-credit Information)

In the process of performing duties, the administrative departments may, according to law, take the following measures against enterprises with bad-credit information records:

1. take the enterprise as a key regulatory object in their routine supervision, increase the inspection frequency, as well as enhance the on-site verification;

2. take the enterprise as a key verification object in administrative examination and approval, and annual inspection and verification;

3. restrict the enterprise in obtaining financial aids and policy support, and prohibit any enterprise with a serious bad-credit record from obtaining financial aids and policy support;

4. restrict the enterprise in participating in government procurement activities;

5. restrict the enterprise in participating in pharmaceutical procurement and government project’s bidding and tendering activities;

6. restrict the enterprise in participating in various kinds of commending and awarding activities organized by the government, and prohibit any enterprises with a serious bad-credit record from participating in various kinds of commending and awarding activities organized by the government within a prescribed time limit;

7. increase the administrative penalties within the discretion scope of administrative penalty; or

8. other measures that may be taken according to relevant provisions of laws, rules and regulations.

The administrative departments may, according to the requirements of work, evaluate on their own or entrust a third-party professional agency to evaluate the enterprise’s credit situation.

Article 9 (Notification on the Use of Information)

Where the administrative departments take measures mentioned in Article 8 according to the enterprise’s bad-credit information sourced from other administrative departments, the situation of use shall be submitted to the MCISA; the enterprise shall be notified, in writing, of the source and contents of the bad-credit information where measures other than Item 1 of Clause 1 of Article 8 are taken.

Article 10 (Public Inquiry)

The enterprise is entitled to inquire its own bad-credit information through the municipal public credit information service platform according to the procedures as provided. Qualified credit service agencies may inquire the enterprise’s bad-credit information through the municipal public credit information service platform according to the procedures as provided. Relevant Procedures shall be separately formulated by the municipal administrative department of credit collection.

Article 11 (Objection Handling)

Where an enterprise disagrees with the truthfulness or accuracy of the related bad-credit information, it may submit a written application to the municipal public credit information service platform for verification.

The operation and maintenance subject of the municipal public credit information service platform shall, within two workdays upon the receipt of the enterprise’s application for verification, notify in writing the administrative department that submitted the bad-credit information to the MCISA. The administrative department shall verify the relevant information, and within 20 workdays upon the receipt of the notice, put forward handling suggestions on whether the information shall be deleted or corrected, make corresponding handlings according to relevant provisions of the MCISA, and notify the operation and maintenance subject of the municipal public credit information service platform in writing. The operation and maintenance subject of the municipal public credit information service platform shall, within five workdays upon the receipt of the notification, provide the enterprise with feedback on the handling results.

Article 12 (Validity of Information)

The validity of the enterprise’s bad-credit information shall be not more than five years from the producing date. The administrative departments may define the validity of the enterprise’s bad-credit information, and mark out the validity period at the time of collecting the information.

Where an enterprise’s bad-credit information has exceeded the validity period, it shall not be used any more, and no further service shall be provided for inquiring for and sharing of such information.

Where laws, rules and regulations have other provisions on the validity period of information, such provisions shall prevail.

Article 13 (Institutional Improvement and Openness)

The administrative departments shall establish and improve the standards and system for recording, sharing and using enterprises’ bad-credit information, and make public thereof according to relevant provisions on open government information.

Trade organizations are encouraged and supported to establish the standards and system for recording, sharing and using the bad-credit information of the enterprises of their respective trade.

Article 14 (Supervision and Assessment)

The assessment results of the work of recording, sharing and using enterprises’ bad-credit information shall be brought into the evaluation system for the relevant municipal departments and all district/county people’s governments.

The municipal administrative department of credit collection shall, jointly with the municipal supervisory department, conduct regular supervision and guidance on the relevant municipal departments and all district/county people’s governments’ work of recording, sharing and using enterprises’ bad-credit information, as well as conduct assessments and circulate the assessment results of their implementation of these Procedures.

Article 15 (Reference)

The record, sharing and use of bad-credit information of social organizations, non-corporate economic organizations and institutions may be implemented with reference to the relevant standards and system for enterprises’ bad-credit information.

Article 16 (Effective Date)

These Procedures shall be effective as of April 1, 2013 until March 31, 2018.

Shanghai Municipal Commission of Economy and Informatization

February 6, 2013