State Council's general office issues document: Strictly prohibit testing and inspection institutions and other third parties from conducting administrative inspections

Recently, the State Council Information Office held a regular press conference on State Council policies to introduce the "Opinions of the General Office of the State Council on Strictly Regulating Administrative Inspections Involving Enterprises" (hereinafter referred to as the "Opinions"). The Ministry of Justice stated that regarding "who cannot conduct inspections," the Opinions clearly stipulate that four categories of entities and personnel are strictly prohibited from conducting inspections: government deliberative and coordinating bodies; third-party organizations such as testing and inspection institutions and research institutes; outsourced intermediary agencies; and law enforcement auxiliary personnel, grid workers, temporary workers, etc., who have not obtained law enforcement certificates.

Opinions of the General Office of the State Council on Strictly Regulating Administrative Inspections Involving Enterprises

Guobanfa [2024] No. 54

       People's Governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions of the State Council, and all institutions directly under the State Council:

       Administrative inspections are an important means for administrative law enforcement entities to fulfill their administrative management responsibilities. They play an important role in guiding and regulating the legitimate operation of enterprises and preventing and correcting illegal activities. To implement the Party Central Committee's decisions and deployments on further regulating law enforcement involving enterprises, strictly regulate administrative inspections involving enterprises, resolutely curb random inspections, and effectively reduce the burden on enterprises, the following opinions are hereby put forward with the approval of the State Council.

       I. Overall Requirements

       Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly study and implement Xi Jinping's ideas on the rule of law, fully implement the spirit of the 20th National Congress of the CPC and the second and third plenary sessions of the 20th CPC Central Committee. Addressing prominent issues such as numerous administrative inspection items, high frequency, great arbitrariness, arbitrary inspections, campaign-style inspections, and disguised inspections under various pretexts, we will strengthen the rule of law in administration, ensure that administrative inspections are lawful, strictly regulated, just, civilized, precise, and efficient, and further optimize the business environment.

       II. Clarifying Administrative Inspection Entities and Prohibiting Organizations Without Subject Qualifications from Conducting Administrative Inspections

       Administrative inspection entities must have statutory qualifications. Administrative organs with administrative law enforcement powers must conduct administrative inspections within the scope of their statutory responsibilities; organizations with the function of managing public affairs authorized by laws and regulations must conduct administrative inspections within the scope of their statutory authorization; and entrusted organizations must conduct administrative inspections within the scope of their entrustment. Except for the above-mentioned entities, no organization or individual may conduct administrative inspections. Administrative inspection entity qualifications shall be confirmed in accordance with the law and announced to the public. It is strictly forbidden for government deliberative and coordinating bodies to conduct administrative inspections under various pretexts; it is strictly forbidden for third-party organizations such as testing and inspection institutions and research institutes to conduct administrative inspections; it is strictly forbidden to outsource administrative inspections to intermediary agencies; and it is strictly forbidden for law enforcement auxiliary personnel, grid workers, temporary workers, etc., who have not obtained law enforcement certificates, to conduct administrative inspections.

       III. Cleaning Up and Publicizing Administrative Inspection Items to Curb Random Inspections from the Source

       Relevant competent departments should strictly implement the power and responsibility list system, sort out existing administrative inspection items involving enterprises in their respective fields, and implement dynamic management. Items without legal basis should be resolutely cleared; those with changes in legal basis should be adjusted in a timely manner; and those without practical effect should be cancelled. Administrative inspection items should be announced to the public in accordance with the requirements of power and responsibility transparency and the public use of power, and be subject to supervision by enterprises and the public. Unannounced administrative inspection items shall not be implemented.

       IV. Reasonably Determining Administrative Inspection Methods and Minimizing the Frequency of Enterprise Inspections

       We will vigorously promote precise inspections to prevent duplicate and overlapping inspections. Where administrative inspections can be combined, they shall not be conducted repeatedly; where administrative inspections can be conducted jointly, they shall not be conducted in multiple ways; where supervision can be carried out through written verification, information sharing, and intelligent supervision, on-site inspections shall not be conducted in enterprises. The number of personnel entering enterprises for inspections shall be strictly controlled, the "random inspection, one disclosure" system shall be optimized, and a "one-form check" system for simple matters shall be implemented. Except where there is a legal basis, on-site inspections shall not be used as a prerequisite for administrative licenses, administrative payments, and other administrative actions. Before the end of June 2025, relevant competent departments of the State Council should establish a hierarchical and classified inspection system in their respective fields; relevant competent departments should publish the upper limit of the annual frequency of administrative inspections by the same administrative organ on the same enterprise. The frequency of administrative inspections shall be included in the annual statistical report on administrative law enforcement. Where administrative inspections are required based on clues such as complaints and reports, referrals, and data monitoring, or at the request of enterprises, the frequency limit may not apply, but if the frequency obviously exceeds the reasonable limit, the administrative law enforcement supervision authorities shall track and supervise in a timely manner. We will explore the establishment of an economic impact assessment system for administrative law enforcement cases involving enterprises and legally reduce the negative impact of administrative law enforcement, especially administrative inspections, on enterprises.

       V. Strict Administrative Inspection Standards and Procedures to Prevent Arbitrary Inspections

       Relevant competent departments of the State Council should sort out existing administrative inspection standards in their respective fields and publish them by the end of June 2025. In cases of conflicts between administrative inspection standards in different fields, relevant competent departments should, in accordance with the regulations, request the government at the same level or the superior administrative organ to coordinate and avoid enterprises being at a loss as to what to do.

       Before conducting administrative inspections, an inspection plan should be formulated and submitted to the head of the administrative law enforcement entity for approval. It shall not be approved only by the head of the internal institution. In emergency situations that require on-the-spot implementation, a report should be made promptly and procedures should be supplemented. During administrative inspections, an administrative inspection notification should be issued. We will accelerate the implementation of "scanning code to enter enterprises", and real-time upload data such as administrative inspection entities, personnel, content, and results to the information system. Law enforcement officers shall proactively show their law enforcement certificates and it is strictly prohibited to use other certificates to replace law enforcement certificates for conducting administrative inspections; people's police officers shall show their people's police certificates. Except as otherwise provided by law, there shall be no fewer than two law enforcement officers. On-site inspection records shall be made when entering enterprises for inspection, and audio-visual recordings shall be made if necessary. After the administrative inspection, the results of the administrative inspection shall be promptly informed to the enterprise. Adhering to the principle of commensurate punishment, the administrative discretion power benchmark system shall be strictly implemented. More flexible law enforcement methods will be adopted. For cases that can be dealt with by means such as reminders, announcements, and dissuasion in accordance with the law, penalties shall not be imposed or penalties shall be exempted according to the principle of inclusive and prudent regulation; cases with prominent problems shall be publicized. By the end of April 2025, the State Council's administrative law enforcement supervision agency shall formulate unified basic format standards for administrative inspection documents and announce them to the public. Administrative inspections involving enterprises shall be based on the principle of local jurisdiction; by the end of December 2025, relevant competent departments of the State Council shall establish and improve the administrative inspection assistance mechanism in other places, clarify the relevant rules, and strictly prohibit illegal cross-regional inspections.

       VI. Strictly Controlling Special Inspections and Avoiding "Going Through the Motions" and Campaign-Style Inspections

       For prominent issues in a certain region or field, targeted inspections can be deployed in accordance with the law. Targeted inspections must meet the objective needs of supervision. Those deemed necessary after evaluation must strictly control the scope, content, and time limit of the targeted inspections, resolutely preventing blanket, indiscriminate inspections of the "one person is sick, everyone takes medicine" type. Targeted inspections must be subject to annual quantity control; inspection plans must be drafted in advance, approved by county-level or higher governments or the superior administrative organ implementing vertical management, filed as prescribed, and publicized to the public. For inspection matters involving more than two departments, the relevant competent departments must jointly draft the inspection plan to avoid multiple and repetitive deployments. If urgent deployment of a targeted inspection is required due to high potential risks and the possibility of serious adverse consequences, the inspection plan must be promptly revised and filed. Targeted inspections must be implemented strictly in accordance with the standards and procedures of administrative inspections to ensure effectiveness and prevent perfunctory actions.

       VII. Standardizing Administrative Inspection Behavior and Preventing Profit-Seeking and Arbitrary Inspections

       Administrative inspections involving enterprises must adhere to "five prohibitions" and "eight must nots." It is strictly prohibited to conduct profit-seeking inspections, to accept any gifts, remuneration, or welfare benefits from the inspected enterprises, to participate in banquets, entertainment, or tourism provided by the inspected enterprises, to have consumption expenses paid by the inspected enterprises or to transfer inspection fees to the enterprises, and to force enterprises to accept services provided by designated intermediary institutions. It is strictly prohibited to interfere with the normal production and operation of enterprises, or to deliberately require the legal representative to be present. It is strictly prohibited to arbitrarily punish enterprises, to conduct indiscriminate seizures, confiscations, or freezings of assets, or to readily order the suspension of production and business. It is strictly prohibited to issue inspection targets or to link assessment and evaluation, budget project performance, with the frequency of inspections or the amount of fines. It is strictly prohibited to conduct inspections in disguise or to conduct inspections under the guise of observation, supervision, or investigation.

       VIII. Strengthening the Responsibility for Standardized Management and Strengthening Law Enforcement Supervision of Administrative Inspections

       All levels of government and relevant competent departments must earnestly implement the "Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Strengthening the Construction of the Administrative Law Enforcement Coordination and Supervision System," strictly implement all requirements, take responsibility, and strengthen the standardized management of administrative inspections involving enterprises. The administrative law enforcement entities must uniformly publish on government websites the administrative inspection-related matters that should be publicly disclosed in accordance with the law, and strictly implement administrative inspections in accordance with regulations. Enterprises have the right to refuse inspections and the right to lodge complaints and reports if administrative inspections are conducted in violation of regulations. The administrative law enforcement supervision agencies must earnestly perform their supervisory duties, strengthen the training of administrative law enforcement personnel, effectively change the wrong concept of "irresponsible inspections" among administrative law enforcement personnel, innovate the supervision methods for administrative inspections involving enterprises, and promote the "supervision + service" model to achieve normalized supervision. Various supervision methods must be organically integrated to form a comprehensive supervisory synergy.

       IX. Strengthening the Empowerment of Digital Technology to Ensure Accurate and Efficient Law Enforcement Supervision

       The State Council's administrative law enforcement supervision agencies should accelerate the completion of the national administrative law enforcement supervision information system, and relevant competent departments should actively cooperate to open up platforms and break down barriers. Administrative inspection-related law enforcement data, as well as administrative inspection items, basis, standards, plans, and frequencies filed or announced in accordance with regulations, must be comprehensively, uniformly, and promptly collected for the entire process supervision of administrative inspections. Artificial intelligence and big data should be used for statistical analysis to quickly issue early warnings about multiple, repetitive, and high-frequency inspections, and to promptly supervise common and frequent problems. The information system should be used to collect enterprise opinions and suggestions on administrative inspections, to pay attention to prominent issues that enterprises and society strongly reflect on, and to focus on supervising the acceptance and handling of enterprise complaints and reports by administrative law enforcement entities. A sound mechanism for information sharing between administrative law enforcement supervision and the 12345 government service hotline should be established and improved, while also making good use of the role of the All-China Federation of Industry and Commerce (ACFIC) and other organizations in reflecting enterprise problems and clues.

       X. Strictly Holding People Accountable and Increasing Efforts to Crack Down on Irregular Inspections

       All levels of administrative law enforcement supervision agencies must investigate and deal with cases of inspections conducted by entities that do not have the qualifications for administrative law enforcement, inspections not conducted in accordance with the published administrative inspection items and standards, inspections not conducted in accordance with the prescribed procedures, unauthorized deployment of targeted inspections, inspections conducted exceeding the annual frequency limit for administrative inspections, and irregular inspections violating the "five prohibitions" and "eight must nots." Promptly order corrections; publicly interview the head of the administrative law enforcement entity or relevant responsible persons; for cases that strongly reflect the concerns of enterprises and have a negative social impact, directly supervise and publicize; for those suspected of disciplinary violations or job-related crimes, transfer them to the disciplinary inspection and supervision organs in accordance with the law. At the same time, a sound mechanism for holding administrative inspection responsibilities accountable and exempting from liability for due diligence should be established and improved, with relevant situations and procedures specified in detail.

       All regions and departments must earnestly implement the decisions and deployments of the CPC Central Committee and the State Council, in accordance with the requirements of central coordination, provincial responsibility, and municipal and county-level implementation, strengthen inter-departmental coordination and cooperation, increase the intensity of publicity and training, vigorously promote work implementation, regard the standardized management of administrative inspections involving enterprises as an important content of government supervision and administrative law enforcement supervision work, prevent excessive inspections and law enforcement interference with enterprises, and ensure that necessary inspections are effectively conducted; sum up experiences and practices in a timely manner and report important situations and problems to the Ministry of Justice. The Ministry of Justice, as the State Council's administrative law enforcement supervision agency, should strengthen overall coordination and guidance and supervision, track the progress of work, and report major matters promptly.

 State Council General Office

 December 30, 2024