China to take punitive measures against discredited enterprises by Muhammad Zamir Assadi


Beijing: China have announced punitive measures against discredited import and export enterprise involved in recording fraudulent trade data under the newly approved memorandum of cooperation between thirty three government authorities.

Li Guo, Vice Minister of the general administration of customs has introduced about the new memorandum which also includes national development and reform commission, the people’s bank of China and general administration of customs as the signatory.

He announced that the new regulations mean incentive measures for advanced certified import and export enterprises including the punitive measures against discredited import and export enterprise.

The general administration of customs is resolutely implementing the deployment regarding the

Building of social credit system proposed by the party central committee and the state council, and has paid much attention to the trustworthy and discredited enterprises, Li said.

He told that enterprises with good credits are entitled to joint incentives, while discredited enterprises are subject to strict measures.

39 punitive measures in light of relevant laws and regulations covering law enforcement administration, market access, industry standard, social identity.

Regulations state that not only the discredited enterprises but also legal representative, directors, supervisors and senior executives of the enterprise would be punished as well, stated by vice minister.

Once be identified as discredited by customs, the import and export enterprises will be labeled dishonesty across customs nationwide and even in the national social credit system, subjecting them to high intensity restrictions and constraints told Li at the press briefing.

Industry and commerce administration will black list companies with record of criminal offence of smuggling.

Vice minister also told  that since the beginning of this year, customs has taken measures on enterprises blacklisted by 7 government authorities including taxation, inspection and quarantine, environmental protection, finance safety supervision and transportation authorities.

Under the regulations, customs have downgraded 3 advanced certified enterprises and 33 general certified enterprises, denied 228 enterprises in their application for becoming certified enterprises and listed 341 enterprises stated by Li.

Luo Yanjun, the representative of National development and reform commission told to media that national court has held 6.73 million discredit cases. Based on these 6.15 million people are limited in terms of taking airplanes, 2.22 millions were blocked for taking high speed train tickets while 71000 corporate people faced punitive measures.

She also briefed that 0.55 million people’s credit cards were also inactivated involved in fake business records accounting for a total of 7000 million RMB.