Measures for the Administration of Certification Institutions

(Promulgated by the General Administration of Quality Supervision, Inspection and Quarantine on July 20 2011 and effective as of September 1 2011.)

Order of the AQSIQ No.141

Part One: General provisions

Article 1: These Measures have been formulated pursuant to relevant laws and administrative regulations such as the PRC Certification and Accreditation Regulations (the Certification Regulations) in order to strengthen the oversight of certification institutions, regulate certification activities and enhance the effectiveness of certification.

Article 2: For the purposes of these Measures, the term “certification institution” means an attesting institution with legal personality established after approval, in accordance with the law, that independently engages in the qualification assessment of whether products, services and management systems comply with standards and the requirements of related technical specifications.

Article 3: These Measures shall govern the engagement in certification activities and the oversight of certification institutions in the People's Republic of China.

Article 4: The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) has overall responsibility for the oversight of certification institutions.

The Certification and Accreditation Administration of the People's Republic of China (the CNCA) is responsible for the work associated with the establishment of certification institutions, related examination and approval, and oversight of their practice activities.

The quality and technical supervision departments of the people's governments of provinces, autonomous regions and municipalities directly under the central government (the Provincial-level Quality and Technical Supervision Departments) and their directly subordinate entry-exit inspection and quarantine authorities (the Directly Subordinate Inspection and Quarantine Authorities) are responsible for oversight of certification activities within their jurisdictions in accordance with these Measures and to the extent the same falls within the scope of their duties.

Article 5: When engaging in certification activities, certification institutions shall adhere to the principles of impartiality, transparency, objectivity, independence and good faith, and safeguard the public integrity system.

Article 6: Certification institutions and their personnel shall maintain the confidentiality of state secrets, trade secrets and technical secrets to which they are privy in the course of their practice activities.

Part Two: Establishment, examination and approval

Article 7: The establishment of a certification institution shall be subject to the approval of the CNCA and it may engage in the certification activities falling within its approved scope only after it has secured legal personality in accordance with the law.

No entity or individual may engage in certification activities without approval.

Article 8: To establish a certification institution, the following conditions shall be satisfied:

(1) having fixed office premises and the necessary facilities;

(2) having articles of association and management systems that satisfy certification and accreditation requirements; if it is to be involved in certification in a new field, having a feasibility study report;

(3) having registered capital of not less than Rmb3 million; and the investor(s) satisfying the requirements of relevant state laws and regulations and relevant provisions, and providing relevant proofs of creditworthiness;

(4) having at least 10 full-time certification personnel with the practice qualifications and capabilities in the relevant field;

(5) the chairman of the board, general manager (director) and management representative (hereinafter collectively referred to as the “Senior Management Personnel”) of the certification institution satisfying the requirements of relevant state laws and regulations and relevant AQSIQ and CNCA provisions, and having the management skills necessary for the performance of their duties; and

(6) other conditions as specified in laws and regulations.

A certification institution that engages in the certification of products shall additionally have testing, inspection and other such technical capabilities appropriate for the product certification activities in which it engages.

Article 9: When a foreign investor establishes a certification institution in China, it shall, in addition to satisfying the conditions set forth in Article 8 hereof, satisfy the following requirements:

(1) being an institution with at least three years of certification practice experience in the pertinent field outside China, being lawfully registered with the relevant authority of its home country or region and not having a record of improper activity;

(2) having secured the accreditation in the pertinent field of the accreditation institution or the recognition of the relevant authority in its home country or region;

(3) when establishing a Sino-foreign equity or cooperative joint venture certification institution, the Chinese party being a certification institution that has received the approval of the CNCA and has at least three years of certification practice experience or an inspection institution or laboratory that has secured recognition of its qualifications in accordance with the law, and that has no record of improper practice activity; and the foreign investor satisfying Items (1) and (2) hereof.

A foreign investor establishing a certification institution in China shall additionally comply with provisions such as laws and administrative regulations on foreign investment and state policy on guiding foreign investment in industry.

Article 10: The procedure for the examination and approval of the establishment of a certification institution is as set forth below:

(1) The applicant for the establishment of a certification institution (the Applicant) shall submit an application and valid supporting documentation and materials evidensing its compliance with the conditions set forth in Articles 8 and 9 hereof to the CNCA;

(2) the CNCA shall conduct a preliminary review of the application materials submitted by the Applicant and render its written decision on whether or not to accept the application within five days from the date of receipt of the application materials; if the application materials are incomplete or are not in the statutory format, the Applicant shall be informed once of all of the additional information it is required to provide or correct;

(3) the CNCA shall render its decision on whether to grant approval within 90 days from the date of acceptance of the application for the establishment of the certification institution; if it decides to grant its approval, it shall issue a notice of establishment of a certification institution to the Applicant, and if it decides to withhold its approval, it shall notify the Applicant in writing and give the reasons therefor;

(4) the CNCA shall, as required, arrange for relevant experts to assess the Applicant's certification, testing and other such technical capabilities and inform the Applicant in writing; the experts shall have 30 days to conduct the assessment and the same shall not be counted as part of the period for the CNCA to grant approval;

(5) the Applicant shall carry out, in accordance with the law, the relevant registration procedures on the strength of the notice of establishment of a certification institution issued by the CNCA and collect its Certification Institution Approval Certificate on the strength of the lawfully completed registration procedures; and

(6) the CNCA shall make a public announcement and post on its website a list of lawfully-established certification institutions.

When carrying out the work associated with the examination and approval of certification institutions, the CNCA shall comply with the principles of reasonable allocation of resources, convenience, efficiency and transparency.

Article 11: A Certification Institution Approval Certificate shall be valid for four years.

If a certification institution wishes to renew its Certification Institution Approval Certificate, it shall submit an application to the CNCA 90 days prior to the expiration of its approval certificate.

The CNCA shall conduct a review of the certification institution applying for renewal in light of the establishment conditions and by the examination and approval procedure specified herein, and render its decision on whether to approve the renewal before the expiration of the Certification Institution Approval Certificate.

Article 12: The establishment of a subsidiary or branch of a certification institution shall be carried out by the procedure for the examination and approval of certification institutions, and such subsidiary or branch may engage in the certification activities falling within its approved scope only after it has been granted approval by the CNCA and been lawfully registered by the company registry.

Article 13: To establish a subsidiary, a certification institution shall satisfy the following conditions:

(1) having been in practice for at least two years and not having committed a violation of laws or regulations during the last two years;

(2) the subsidiary satisfying the establishment conditions set forth in Article 8 hereof while additionally satisfying the provisions of other laws and administrative regulations; and

(3) the subsidiary being wholly owned or controlled by the certification institution.

Article 14: To establish a branch, a certification institution shall satisfy the following conditions:

(1) having been in practice for at least two years and not having committed a violation of laws or regulations during the last two years;

(2) the branch having fixed office premises and the necessary facilities;

(3) the branch having at least five full-time certification personnel with practice qualifications and capabilities in the relevant field;

(4) the place where the branch is to be located having organisations that have been certified by the institution;

(5) the branch having the relevant management systems suitable for certification and accreditation; and

(6) other conditions as specified in laws and regulations.

Article 15: A certification institution may establish an office that engages in publicity and promotional activities for the business falling within the institution's approved scope and within 30 days from the date of establishment, a Chinese-invested certification institution shall carry out record filing with the Provincial-level Quality and Technical Supervision Department of the place where the office is located; a foreign-invested certification institution shall carry out record filing with the Directly Subordinate Inspection and Quarantine Authority of the place where the office is located. The particulars recorded shall include the name, address, person in charge and scope of business of the office, and the certification institution to which it belongs.

Provincial-level Quality and Technical Supervision Departments and Directly Subordinate Inspection and Quarantine Authorities shall publish the lists of offices that have been recorded in accordance with the law and submit to the CNCA the lists of the offices of certification institutions recorded in their jurisdictions.

Article 16: An overseas certification institution may establish a representative office in China that engages in publicity and promotional activities falling within the institution's scope of business and within 30 days from the date of establishment, carry out record filing with the CNCA. The particulars recorded shall include the name, address, person in charge, documentary proof of registration, supporting document from the foreign accreditation institution and the certification institution to which it belongs.

The CNCA shall publish the list of representative offices that have been recorded in accordance with the law.

Article 17: The subcontracting by a certification institution of certification business from an overseas certification institution by way of a contract shall be subject to the approval of the CNCA, and such institution shall bear the certification risks and related liability arising from such subcontracting.

A certification institution that applies to engage in subcontracting shall first secure the approval to practise in the pertinent certification field.

Article 18: A certification institution shall apply to the CNCA in accordance with the law to carry out relevant procedures for a change if:

(1) it reduces its approved scope of business;

(2) it changes the nature of its legal personality, a shareholder or its registered capital;

(3) it is merged or divided;

(4) it changes its name, domicile, legal representative or Senior Management Personnel; or

(5) a change to another of its material particulars occurs.

If a certification institution applies to expand its scope of business, it shall have been practising for at least one year and not have committed a violation of laws or regulations during the past year.

An application for the expansion of the scope of business shall be handled by the CNCA with reference to Article 10 hereof.

Part Three: Code of conduct

Article 19: A certification institution shall carry out its certification activities in an impartial, independent and objective manner, establish a risk prevention mechanism, take reasonable and effective measures against the risks and liability that could arise from its certification activities and bear the attendant social responsibilities.

A certification institution and its subsidiaries, branches and offices may not have a material interest in a certification consulting firm or a client in terms of assets, management or personnel.

Article 20: A certification institution shall establish a quality system to ensure that its certification activities are compliant and effective, carry out certification by the procedure specified in the basic certification standards and certification rules, and issue certification conclusions.

If the CNCA has not formulated certification rules, a certification institution may itself formulate such rules and shall submit them to the CNCA for the record.

Article 21: A certification institution shall publish its scope of certification, certification rules and charge rates, and particulars such as the names, scopes of business and addresses of its subsidiaries, branches and offices on its website or otherwise and ensure that such information is true and valid.

Article 22: When a certification institution and its branches and subsidiaries simultaneously engage in activities, they shall, in addition to complying with their responsibilities and obligations specified in laws and regulations, comply with the following requirements:

(1) A certification institution shall centrally publish and submit certification information from its address registered with the administration for industry and commerce, which shall be its core office premises; and

(2) when more than one office premises of a certification institution engage in certification activities, the institution shall ensure that all of its office premises use the identical quality management system and procedures, and control all personnel and certification processes.

Article 23: A certification institution shall establish and enhance a certification personnel management system, regularly train and assess the capabilities of its certification personnel, so as to ensure that the capabilities of its certification personnel continuously satisfy requirements, and ensure that it has a reasonable number of full-time certification personnel and technical experts in the certification review process.

A certification institution may not engage or use persons that state laws and regulations ban from engaging in certification activities.

Article 24: A certification institution shall verify whether the field, product and contents that a client has entrusted to it for certification comply with relevant laws and regulations and its legal personality; depending on the size, nature and organisation of the client and the degree of complexity of its product, it shall plan the entire certification process, formulate specific implementation, testing, inspection, supervision and other such plans and assign certification personnel and technical experts with the relevant capabilities to carry out the certification.

Article 25: A certification institution shall implement effective control throughout the certification process in accordance with the procedure specified in the basic certification standards and certification rules, and ensure that the certification and product testing processes are complete, objective, genuine and traceable. It may not add, subtract or omit a certification procedure or activity, and shall assign certification personnel with the relevant capabilities and expertise to assess the aforementioned processes.

A certification institution shall formulate the appropriate procedures to assess and effectively control the certification results and shall have clear provisions and assessment requirements for the issuance, suspension and revocation of certification certificates.

Article 26: A certification institution shall keep a complete record of the entire certification process and keep the relevant certification materials. The record shall be true and accurate so as to establish that the certification activities were effectively carried out. The record and materials shall be in Chinese, and the period of retention shall be identical to the term of validity of the certification certificate.

Article 27: A certification institution and its certification personnel shall render the certification conclusions in a timely manner and ensure that such certification conclusions are objective and true. Once signed by the certification personnel, the certification results shall be provided to the client by the certification institution. A certification institution and its certification personnel shall be responsible for the certification results and bear the attendant legal liability.

Article 28: If the certification conclusions comply with requirements, the certification institution shall issue a certification certificate to the client in a timely manner and permit it to use the certification symbol. The certification certificate shall be signed and issued by the person authorised by the certification institution.

The certification certificate shall state the name of the certified organisation, its address, the scope of coverage or the product, the standards or relevant technical specifications on which the certification is based, term of validity, etc. The information contained on a certification certificate shall comply with the actual circumstances of the carrying out of the certification.

A sample of the certification certificate of a certification institution shall be submitted to the CNCA for the record within 30 days after its determination.

The certification institution shall provide a means for the public to check the validity of certification certificates.

Article 29: A certification institution that is merged or divided shall deal with the certification certificates issued before the change and replace the relevant certification certificates by the specified procedure.

Once a certification institution has had its approved qualifications cancelled or revoked, the certified organisations that hold valid certification certificates from said institution may approach a certification institution approved by the CNCA to have their certification certificates replaced. A certification institution that accepts to replace such certificates shall carry out the replacement by the specified procedure and report the results of such replacement to the CNCA.

Article 30: A certification institution shall require certified organisations to correctly use their certification certificates and the certification symbol within the scope of their certification, and shall take effective corrective measures against those organisations that erroneously use their certification certificates or the certification symbol or fail to use the same in accordance with provisions.

Article 31: A certification institution shall carry out, in accordance with the requirements of the basic certification standards and certification rules, effective follow-up monitoring of the products, services and management systems that it has certified and determine a reasonable frequency of monitoring inspections so as to ensure that certified products, services and management systems continuously comply with certification requirements. If a product, service or management system ceases to satisfy certification requirements, the certification institution shall suspend or revoke the certification certificate therefor, promptly make a public announcement to that effect and take effective measures to prevent continued use of the invalid certification certificate and certification symbol.

Article 32: A subsidiary or branch of a certification institution shall carry out certification activities within its approved scope in the name of the certification institution and carry out its work in accordance with these Measures, and the requirements of the basic certification standards and certification rules.

A subsidiary or branch of a certification institution may not establish an organisation relating to certification activities in any form or entrust a third party to engage in certification activities.

Article 33: An office established by a certification institution or a representative office established in China by an overseas certification institution and its personnel may not engage in activities such as executing certification contracts, organising onsite reviews (inspections), issuing review (inspection) reports, implementing certification decisions or collecting certification fees, and may not directly or in a disguised manner engage in the provision of certification training or certification consulting.

Part Four: Monitoring inspections

Article 34: The AQSIQ and the CNCA shall monitor the compliance of certification institutions with the Certification Regulations and these Measures.

The CNCA shall be responsible for conducting inspections of the operations of certification institutions, conducting random checks of certification results and certification activities, and publishing the results of such inspections and random checks and the lists of relevant certification institutions and certified organisations.

Article 35: The CNCA subjects certification institutions to a system where they are required to submit information on their certification business and their annual work reports are subject to review.

A certification institution shall submit information on its certification business to the CNCA in accordance with relevant provisions, which information shall include detailed information on organisations that have secured certification, details of the suspension and revocation of certification certificates and business information relating to certification results.

The CNCA shall collate the relevant information and data submitted by certification institutions in a timely manner, and publish the same.

A certification institution shall submit to the CNCA by the end of February each year its work report for the previous year that shall provide information such as the basic details of its practice, information on its personnel and business, a quality analysis, and the financial accounting reports and audit reports issued by an accounting firm complying with state qualification requirements.

Article 36: Quality and technical supervision departments at every level and all local exit-entry inspection and quarantine authorities (hereinafter collectively referred to as “Local Certification Oversight Departments”) shall, according to their duties, regularly monitor certification activities within their jurisdictions, investigate and deal with violations of certification laws, and establish the relevant monitoring and coordination work mechanisms.

Article 37: The AQSIQ and the CNCA shall monitor and guide the record filing of offices of certification institutions and certification law enforcement work carried out by Provincial-level Quality and Technical Supervision Departments and Directly Subordinate Inspection and Quarantine Authorities.

Provincial-level Quality and Technical Supervision Departments shall monitor and guide the certification law enforcement work carried out by the quality and technical supervision departments of the cities and counties under them. Directly Subordinate Inspection and Quarantine Authorities shall monitor and guide the certification law enforcement work carried out by their (sub-)branch entry-exit inspection and quarantine authorities.

By the end of March each year, Provincial-level Quality and Technical Supervision Departments and Directly Subordinate Inspection and Quarantine Authorities shall submit to the CNCA the information on certification oversight work in their jurisdictions during the previous year.

Article 38: If the CNCA or a Local Certification Oversight Department discovers any of the issues set forth below in the course of administration and the same is verified after investigation, it shall give the certification institution a warning and order it to rectify the matter:

(1) Record filing procedures for an office that has been established are not carried out with the provincial-level certification oversight department of the place where it is located.

(2) Record filing procedures are not carried out with the CNCA for a representative office established in China by an overseas certification institution.

(3) The certification institution fails to submit the certification rules it has formulated itself to the CNCA for the record.

(4) A member of the Senior Management Personnel of the certification institution violates a relevant provision hereof.

(5) The certification institution fails to submit its certification certificate or certification symbol for the record or the certificate or symbol issued to a certified organisation or for a product is inconsistent with that placed on the record.

Article 39: The state encourages certification institutions to seek accreditation by an accreditation institution so as to attest that its certification capabilities comply with requirements. Where laws or administrative regulations require accreditation, a certification institution shall secure such accreditation in accordance with legal requirements.

An accreditation institution shall carry out effective follow-up monitoring of accredited certification institutions and conduct random checks of the compliance of their certification results. If a certification institution fails to continuously satisfy the accreditation requirements, the same shall be dealt with by suspending or revoking its accredited qualifications. Violations of laws or regulations discovered in the course of accreditation monitoring shall be promptly reported to the CNCA.

Article 40: A certification and accreditation association shall strengthen the administration of the industry self-regulation of certification institutions, evaluate the compliance with laws and regulations and the performance of the industry self-regulation code by certification institutions and if it discovers a violation of laws or regulations by a certification institution, it shall promptly report the same to the CNCA.

Article 41: Certification institutions and certified organisations shall cooperate with and assist the CNCA and Local Certification Oversight Departments in their monitoring inspections and provide true relevant materials and information in response to inquiries about and investigations of relevant matters.

Article 42: If a certified organisation is involved in a product quality safety-related incident, an environmental pollution incident or an occupational health safety-related incident, or if a product is found by an administrative authority to not comply with statutory requirements in the course of a random inspection check, the certification institution shall, depending on the actual circumstances, suspend or revoke the certified organisation's certification certificate in accordance with the law, promptly report the same to the CNCA, the Local Certification Oversight Department and relevant departments, and cooperate with the relevant administrative authorities in carrying out follow-up monitoring inspections of the certified organisation.

Article 43: The CNCA shall carry out the procedures for cancelling the Certification Institution Approval Certificate of a certification institution in accordance with the law if:

(1) the Certification Institution Approval Certificate has expired and the certification institution has not applied for renewal thereof;

(2) the Certification Institution Approval Certificate has expired and it is found through review that the certification institution does not satisfy the requirements for a decision to renew its approval;

(3) the business of the certification institution terminates in accordance with the law; or

(4) another circumstance requiring cancellation as specified in laws and regulations applies.

Article 44: The CNCA may, at the request of a materially-interested party or ex officio, revoke the decision to grant approval to a certification institution if:

(1) a member of the working personnel of the CNCA abused his/her authority or was derelict in his/her duties in rendering the decision to grant approval;

(2) the decision to grant approval was rendered ultra vires;

(3) the decision to grant approval was rendered in violation of the statutory procedure;

(4) approval was granted to an Applicant that did not have the qualifications to make such application or that did not satisfy the statutory conditions;

(5) the certification institution no longer satisfies or fails to continuously satisfy the statutory conditions and capabilities; or

(6) another circumstance under which the approval decision may be revoked in accordance with the law applies.

Article 45: Any entity or individual has the right to lodge a complaint in respect of or report a violation of laws or regulations committed in the course of certification activities to the AQSIQ, the CNCA or the Local Certification Oversight Department. The CNCA or Local Certification Oversight Department shall promptly investigate and deal with the matter, and maintain the confidentiality of the whistleblower.

Part Five: Legal liability

Article 46: If an Applicant withholds relevant information or provides false materials in applying for the establishment of a certification institution or other such matter requiring examination and approval, the CNCA will not accept or approve such application and give the Applicant a warning. Furthermore, the Applicant may not again apply for the establishment of a certification institution or other such matter requiring examination and approval for one year.

Article 47: If an Applicant secures an approval certificate for the establishment of a certification institution or other such matter requiring examination and approval through illicit means such as deception or bribery, the CNCA shall revoke its approval certificate. Furthermore, the Applicant may not again apply for the establishment of a certification institution for three years.

Article 48: If a certification institution establishes, without approval, a subsidiary or branch to engage in certification activities, the Local Certification Oversight Department shall order its subsidiary or branch to halt its certification activities, impose a fine of not less than Rmb100,000 and not more than Rmb500,000 and confiscate its illegal income, if any. The CNCA shall order the certification institution to suspend operations and undergo rectification for six months and suspend the responsible certification personnel from practising for one year. If the circumstances are serious, the CNCA shall revoke the certification institution's approval certificate and the responsible certification personnel's practice qualifications and publicly announce the same.

Article 49: If an office established by a certification institution engages in certification activities such as executing certification contracts, organising onsite reviews (inspections), issuing review (inspection) reports, implementing certification decisions or collecting certification fees, the Local Certification Oversight Department shall revoke its record filing, impose a fine of not less than Rmb100,000 and not more than Rmb500,000 and confiscate its illegal income, if any. The CNCA shall order the certification institution to suspend operations and undergo rectification for six months, suspend the responsible certification personnel from practising for one year and publicly announce the same.

Article 50: If a representative office established in China by an overseas certification institution engages in certification activities such as executing certification contracts, organising onsite reviews (inspections), issuing review (inspection) reports, implementing certification decisions or collecting certification fees, the Local Certification Oversight Department shall order it to halt such illegal acts, impose a fine of not less than Rmb100,000 and not more than Rmb500,000 and confiscate its illegal income, if any. If the circumstances are serious, the CNCA shall revoke its record filing and publicly announce the same.

Article 51: If a subsidiary or branch of a certification institution establishes an organisation in any form or entrusts a third party to engage in certification activities, the Local Certification Oversight Department shall fine it not less than Rmb100,000 and not more than Rmb500,000 and confiscate its illegal income, if any. The CNCA shall revoke the approved qualifications of the subsidiary or branch, order the certification institution to suspend operations and undergo rectification for six months and suspend the responsible certification personnel from practising for one year. If the circumstances are serious, the CNCA shall revoke the certification institution's approval certificate and the responsible certification personnel's practice qualifications and publicly announce the same.

Article 52: If a certification institution subcontracts certification business from an overseas certification institution without the approval of the CNCA, the CNCA shall order it to rectify the matter and give it a warning. If the circumstances are serious, the CNCA shall order it to halt operations and undergo rectification for six months and publicly announce the same. As for the responsible certification personnel, the CNCA shall suspend their practice for one year. If there is any illegal income, the CNCA shall confiscate it.

Article 53: The CNCA or the Local Certification Oversight Department shall order a certification institution to rectify the matter, give it a warning and publicly announce the same if:

(1) there is a change in its full-time certification personnel such that their number or practice qualifications fail to satisfy requirements;

(2) a change in a particular occurs and it fails to carry out the procedures for the change in accordance with provisions;

(3) it fails to punctually submit information such as its annual review report or the list of certified organisations or the materials that it submits contain false information; or

(4) it otherwise violates these Measures.

Article 54: The CNCA or the Local Certification Oversight Department shall order a certification institution to rectify the matter within a specified period of time and may fine it up to Rmb30,000 should it fail to do so, if:

(1) it fails to publicly announce the suspension or revocation of a certification certificate;

(2) it fails to provide the certification review documents to a client;

(3) a review period is seriously insufficient and less than that specified in the basic certification standards and certification rules;

(4) it engages in certification consulting activities;

(5) the product of a certified organisation fails to satisfy the requirements of relevant laws and regulations or the product production standards were not submitted for the record in accordance with statutory requirements and the certification institution failed to suspend its certification certificate or take other corrective measures in accordance with provisions;

(6) in the course of a monitoring inspection by an administrative authority, it refuses to provide information reflecting its practice activities, withholds such information or provides false materials; or

(7) it otherwise violates these Measures.

Article 55: The Local Certification Oversight Department shall order a certification institution to rectify the matter, impose a fine of not less than Rmb50,000 and not more than Rmb100,000 and confiscate its illegal income, if any, and if the circumstances are serious the CNCA shall order it to suspend operations and undergo rectification for six months or revoke its approval certificate and publicly announce the same if:

(1) it engages a person not registered (confirmed) by the state or uses a person not satisfying certification requirements and capabilities to engage in certification review or inspection activities;

(2) it adds, subtracts or omits a procedural requirement specified in the basic certification standards or certification rules, or certification personnel fail to go to the review site or fail to effectively verify the corrective measures taken by a client but nevertheless issue it a certification certificate;

(3) its internal management is in disorder or more than one office premises render certification decisions resulting in a failure to effectively certify or carry out follow-up monitoring in accordance with the procedures and requirements of the basic certification standards and certification rules, of the products, services or management systems it is certifying or has certified, causing an adverse social effect;

(4) a product, service or management system that it has certified fails to continuously comply with certification requirements, but the certification institution fails to suspend or revoke the certification certificate and publicly announce the same in accordance with provisions; or

(5) it otherwise violates the basic certification standards or certification rules.

Article 56: The Local Certification Oversight Department shall order a certification institution to rectify the matter, impose a fine of not less than Rmb100,000 and not more than Rmb200,000 and confiscate its illegal income, if any, and if the circumstances are serious, the CNCA shall revoke its approval certificate and publicly announce the same if:

(1) it exceeds its approved scope in carrying out its certification activities;

(2) it alters or forges its Certification Institution Approval Certificate or otherwise illegally transfers its approved qualifications;

(3) during a period of suspension of operations to undergo rectification, it continues to engage in certification activities; or

(4) after a period of suspension of operations to undergo rectification, it still fails to engage in certification activities in accordance with the rectification requirements.

Article 57: If a certification institution issues false certification conclusions or if the conclusions it issues are materially false, the CNCA shall revoke its approval certificate and publicly announce the same. Furthermore, it shall give a warning to the supervisor directly in charge and revoke the practice qualifications of the certification personnel directly responsible. If a criminal offence is constituted, criminal liability shall be pursued in accordance with the law. If losses are caused, compensation shall be borne in accordance with the law.

Article 58: Other violations of the law by a certification institution shall be penalised in accordance with relevant laws and regulations such as the Certification Regulations.

Article 59: The CNCA, Local Certification Oversight Departments and their working personnel shall monitor certification activities in accordance with the law. If a violation of the law, such as an abuse of authority, the practising of favouritism by committing fraud or a dereliction of duty, is committed, administrative sanctions shall be imposed in accordance with the law. If a criminal offence is constituted, criminal liability shall be pursued in accordance with the law.

Part Six: Supplementary provisions

Article 60: If a certification institution from Hong Kong, Macao or Taiwan wishes to establish a certification institution or representative office on the mainland, the relevant examination and approval procedures shall be carried out in accordance with the provisions on overseas certification institutions of Part Two hereof, and the provisions hereof shall be complied with.

Article 61: The AQSIQ is in charge of interpreting these Measures.

Article 62: These Measures shall be effective as of September 1 2011.