China Laws and Regulations Update in October 2022

1. Regulations on Several Issues Connected with People Freed on Bail Pending Trial

Promulgated by Supreme People’s Court, Supreme People’s Procuratorate, Ministry of Public Security and Ministry of National Security

Promulgation date: 21 September 2022

Implementation date: 21 September 2022

Document number: GTZ[2022]25

To better regulate people freed on bail pending trial and prevent failure to or negligence in the regulation, the Regulations mainly puts forward the following measures.

First, the scope of activities of people freed on bail is clarified. To meet the practical regulatory requirements, the Regulations further specifies the “specific places”, “specific people” and “specific activities” in Article 71 of the Criminal Procedural Law so that enforcement authorities can understand and put these provisions into practice and people freed on bail can clearly know the scope of their activities.

Second, the duty of reporting of people freed on bail outside the place of the trial is clarified. The Regulations requires people freed on bail outside the place of the trial report to the enforcement authority within five days after receipt of the decision to free them on bail. In addition, it stipulates the circumstances and sanctions for people freed on bail who fail to report within the specific period of time to ensure they report on time and are legally regulated.

Third, punishments for people freed on bail who violate rules are specified. Chapter Five of the Regulations is about punishments for violation by people freed on bail, further clarifying conditions and procedures relating to bail confiscation, fines for guarantors, public security sanctions, arrest, etc. to ensure provisions relating to people freed on bail are fully brought into effect. (Source: SPC website)

https://www.court.gov.cn/fabu-xiangqing-372491.html

2. Instructions on Regulating Discretionary Power of Market Regulation Authorities in Administrative Penalties

Promulgated by State Administration for Market Regulation

Promulgation date: 10 October 2022

Implementation date: 10 October 2022

Document number: GSJFG[2022]2

To fully implement the new Administrative Punishment Law, the Instructions mainly revises the provisions in the old instructions that are not consistent, connected with or subsidiary to the new law to ensure appropriate implementation of laws, rules and regulations. To meet relevant requirements of the State Council, it includes provisions relating to formulation of benchmarks and administration for discretionary power in administrative penalties to establish a system that promotes appropriate discretionary power in administrative penalties and guarantees the legal basis for benchmarks for the administrative penalty decisions. To meet the current needs of law enforcement for market regulation, it includes the principle of fairness and justice in exercise of the discretionary power in administrative penalties, and provisions relating to flexible application of the benchmarks for discretionary power in administrative penalties and clarification of application of these benchmarks in the administrative penalty decision, etc. in order to actively respond to social concerns and reflect the harmonious relationship between the force and leniency of law. (Source: SAMR website)

https://gkml.samr.gov.cn/nsjg/fgs/202210/t20221010_350620.html

3. Instructions on Promoting Sound Development of Property and Right Financing Business

Promulgated by China Banking and Insurance Regulatory Commission and People’s Bank of China

Promulgation date: 29 September 2022

Document number: YBJF[2022]29

The Instructions mentions greater efforts to provide property and right financing services, reasonable expansion of the scope of pledge, use of property and right financing to give support in weak areas, and differentiation in management of property and right financing. The Instructions proposes to support banking institutions to deepen innovation of property and right financing business, enhance the quality and efficiency of receivablesfinancing, optimize financing business of commodity and property in goods and develop supply chain based receivables financing and other businesses and a full range of digital financial products for the supply chain.

The Instructions requires banking institutions to increase the ability to control property financing risks, strengthen the evaluation of the value of property and rights, classify loans and manage them differently, explore an online system used as the main approach to “three issues” relating to inspection of loans for supply chain financing, meet the requirement of registration and announcement of guarantee on mortgage, regulate mortgaged property management and cooperation in supervision with third parties, promote application of new technology to mortgage management and broaden the channels for realization of property. (Source: CBIRC website)

http://www.cbirc.gov.cn/cn/view/pages/ItemDetail.html?docId=1075590&itemId=928

4. Circular on Transitional Changes in Residential House Loan Differentiation Policy

Promulgated by China Banking and Insurance Regulatory Commission and People’s Bank of China

Promulgation date: 29 September 2022

The Circular stipulates that 1. for cities where the sale prices of new commercial residential houses continue decreasing from June to August 2022 when compared with the previous three-month period of time and the same period of time last year, the lower limit on the interest rate of borrowings for individuals buying the first commercial residential house will be relaxed for a transitional period of time by the end of 2022 with the lower limit for the second house in accordance with the current provisions; and 2. by following the principle of “one city, one policy”, governments of the above eligible cities have the discretion to remain, relax or lift the lower limit on the interest rate of borrowings for individuals buying the first commercial residential house in the local area by cooperating with the provincial self-regulated mechanism for market interest rate determination under the guidance of agencies of China Banking and Insurance Regulatory Commission and the People’s Bank of China. (Source: PBC Website)

http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4671913/index.html

5. Circular on Matters Connected with Stronger E-cigarette Regulation

Promulgated by State Administration of Tobacco

Promulgation date: 29 September 2022

Document number: GYB [2022] 118

The Circular deals with three issues, including legal production and business operation of entities on the e-cigarette market, re-statement of relevant prohibitions and appropriate handling of problems that have existed during the transitional period. The Circular requires that from 1 October 2022, entities engaged in production and management of e-cigarette on the e-cigarette market should have the tobacco monopoly license and carry out production and business activities in accordance with the Tobacco Monopoly Law (Amended in 2015), the Tobacco Monopoly Law Enforcement Rules (Amended in 2021), E-cigarette Management Rules, mandatory national standards relating to e-cigarette, and relevant policies and rules by the State Tobacco Bureau. E-cigarette manufacturers, atomized product manufacturers, e-cigarette nicotine manufacturers, e-cigarette wholesellers, e-cigarette retailers, etc. with legitimate tobacco monopoly licenses should transact business through the e-cigarette transaction management platform. (Source: SAT website)

http://www.tobacco.gov.cn/gjyc/tzgg/202209/b092e633daab4b24bc1cc623463bf32c.shtml

6. Announcement of Personal Income Tax Policy in Favor of Residents Substituting New Residential Houses for Old Ones

Promulgated by Ministry of Finance and State Administration of Taxation

Promulgation date: 30 September 2022

Document number: MOF and SAT Announcement 30, 2022

The Announcement provides that from 1 October 2022 to 21 December 2023, personal income tax on the house owner who sells his/her own residential house and buys a new residential house within one year after having sold the old house will be refunded. If the purchase price of the new house is higher than or equal to the sale price of the old house, the personal income tax will be fully refunded. If the purchase price of the new house is lower than the sale price of the old one, the personal income tax will be refunded in the proportion of the price of the new house to that of the old one. (Source: MOF website)

http://szs.mof.gov.cn/zhengcefabu/202209/t20220930_3844156.htm

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