China China publishes draft management measures for list of sanctioned entities discredited for safe production issues

On September 28, 2020, in order to implement effective sanctions against discrediting acts in the field of safe production and to improve the current management system for the list of sanctioned entities discredited for safe production issues, the Ministry of Emergency Management of China published the Management Measures for the List of Sanctioned Entities Discredited in Safe Production (draft for comments) to collect opinions. The public comment period ended on October 30, 2020.

 

The measures stipulate that discredited entities be added to either of the two lists, the Closely Scrutinized Entities List and Heavily Discredited Entities List, depending on the degree of discredit.

The measures also set out details of the listing criteria for the two lists, procedure of notification to listed entities, responsibilities of administrative bodies, management periods, obligations of listed entities, etc.

In the listing criteria section of the measures, discrediting acts are summarized for each list; entities which commit any of those discrediting acts will be added to either list.

 

The listing criteria for the two lists are as follows.

Closely Scrutinized Entities List

  1. Entities that cause a general safe production responsibility accident1 which makes a relatively large impact on society and are determined to be primarily responsible for the accident.
  2. Entities that refuse to make a written safe production credit commitment or fail to keep the commitment after making it.
  3. Entities that fail to remove the potential risk of major work-related accidents within the designated period according to requirements from the government.
  4. Entities that receive administrative penalties for safe production issues twice or more in total within 12 months; do not follow safe production supervision and management instructions; or do not follow safe production administrative penalty decisions.
  5. Entities that commit other discrediting acts falling under the listing criteria for the list.

1 An accident caused by an entity violating the safety management provisions.

 

Heavily Discredited Entities List

  1. Entities that cause a serious or relatively serious safe production responsibility accident and are determined to be primarily responsible for it.
  2. Entities that conduct regular production or business operations without a safe production administrative license or with an expired, temporarily suspended or revoked license; or conduct such operations while ordered to suspend production and resolve the issues within the designated period, or entities that do not design and construct a safe facility for high-risk operations, such as mining, hazardous chemical handling and metal smelting, according to an approved plan; construct such a safe facility without a license; or begin production or use such a safe facility without passing necessary inspections.
  3. Entities that obtain a safe production administrative license by illegitimate means, including material forgery, deception and bribery; resell or lease the license illegitimately; or forge a report of a safe production technology service body, a consulting service result or a training test result certificate.
  4. Entities that fabricate or deliberately destroy an accident scene, fabricate or destroy evidence, cover up relevant materials, or deceive or obstruct officers to avoid or resist the accident investigation or safety supervision and management inspections, or entities that cover up work-related accident circumstances or report false accident circumstances.
  5. Entities that, after being added to the Closely Scrutinized Entities List, do not resolve the issues within six months or commit again an act falling under listing criteria for this list.
  6. Entities that commit other discrediting acts falling under listing criteria for the list.

 

The original text of the draft measures can be viewed at this link (in simplified Chinese):

http://www.mem.gov.cn/hd/zqyj/202009/t20200928_366802.shtml