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Year-end Review II of Commerce Work in 2012: Take a Long-term View, and Strive to Standardize and Improve Market Order and Operation Environment

The work of cracking down on IPR infringement and counterfeits has made remarkable achievements in 2012; the capacity of guaranteeing food and medicine safety in circulation field has been further strengthened; environment for business and consumption has been improving; and credit construction in commercial field has made positive progress.

First, carry out drastic measures on IPR infringement and counterfeits

The special rectification measures have been effective with remarkable results. Focusing on trade mark right, copyright and patent right, we carried out special rectification on online commodity transaction websites, import and export links, medicine and cosmetics, agricultural materials, rural markets, auto parts, geographical indication and labeling for organic products, etc. Since this year, the administrative law enforcement departments totally placed 274 thousand cases on file involving 7.99 billion yuan and demolished 15 thousand dens.

Fights against criminal cases are forceful and serve as a deterrent. The public security organs are oriented by people’s livelihood and will, and carried out a battle for cracking criminal cases. This year, they totally solved 39,000 cases, captured 57,000 suspects involving 10.76 billion yuan. The prosecutorial organs strengthened supervision over case filing and investigation. This year, they totally ratified the arrest of 14,000 people in 7,426 IPR infringement cases, investigated and filed 12,000 cases and sued 22,000 people. The courts accepted 12,000 cases, tried and closed 10,000 cases and sentenced 12,000 people.

The construction of the legal system was enhanced and the working mechanism was constantly improved. According to the needs for combating infringement and counterfeits, we made “package” revisions to the provisions in relevant laws and regulations on the amount of penalty, completed the revision on drafts of trademark law and patent law. We issued a batch of important national standards such as technical conditions for the security of school buses, and promoted to include combating of infringement and counterfeits into the performance evaluation system of the comprehensive governance for social administration. The General Office of the State Council issued the opinion on enhancing the connection of administrative law enforcement with criminal justice. Since this year, the administrative law enforcement departments have totally transferred 5,562 cases suspecting crimes to the judicial organs.

The publicity and education was rich in forms with a good atmosphere. Website on China’s Combat against IPR Infringement and Counterfeits was opened to issue authoritative information and respond to public concerns. Relevant central press units and their websites reported the work arrangement and effects in combating of infringement and counterfeits in China since the 16th CPC National Congress, especially in recent two years, surging the high tides of propaganda and education activities. Forum on Enterprises’ IPR Protection and Innovation & Development was also held.

The long-effect mechanism of government software legalization was initially established. The expenditure on software procurement was included in the fiscal budget of the government; the software asset was included in the asset management system, and the procurement and asset management situation was included in the scope of audit. As at the end of June 2012, 31 provinces, autonomous regions, municipalities directly under the central government and Xinjiang Construction and Production Corps all had completed the check and rectification of the software legalization of the government units, and two-fifths and one-fifth of legalization is completed in city-level and county-level government units. And software legalization in the headquarters of central state-owned enterprises has wholly been completed.

Second, ensure the safety of food and medicine in market

The construction of Meat and Vegetable Distribution Traceability System has made positive progress. The mid-term evaluation of the first batch of pilot cities has been finished, and the technical standards on software and hardware have been formulated. On the basis of the first two batches of 20 cities, the third batch, 15 pilot cities including Xining, Hohhot, Nanning, Beijing, and Changchun, have been selected. The central traceability management platform has been gradually improved, and connected with the traceability management platforms of the first batch of pilot cities. It has collected and traced back to over 43 million pieces of data accumulatively, and the stores put on files reached 85,487.

Crack down illegal slaughtering and ensure the quality of meat. Together with six other departments including public security department and agricultural department, MOFCOM launched a 9-month action on cracking down illegal slaughtering. Departments in different regions totally sent 1.3 million law enforcement officials, dealt with 5,481 illegal pig slaughtering cases, punished 3,790 people, confiscated 900 thousand kilograms of meet from illegal slaughtering, and imposed a fine of 11.83 million yuan. The illegal slaughtering in most provinces (autonomous regions and municipals) has been controlled and the order of meat markets has become better.

Vigorously promote the examination and rectification of permits for designated pig slaughtering. Together with other nine departments of public security, agriculture and industry and commerce, MOFCOM carried out the examination and rectification. According to statistics, designated pig slaughtering factories have reduced by 22.8% to 4,057; small-scale pig slaughtering spots reduced by 17.2% to 11,525 and 6,375 enterprises have been rectified. The industrial concentration has been further enhanced.

The capacity of dealing with emergencies in food safety has been further enhanced. “Planning of MOFCOM for Safety Accidents” and “Rules (Trial) on Reporting, Enquiring in and Handling on Food Safety Incidents” have been promulgated, and emergency system for food safety incidents has been preliminarily established. Capacity for dealing with emergencies has been enhanced.

Management system for medicine circulation industry has been basically established. Implement the 12th Five-Year Plan for medicine circulation industry, and formulate supporting measures. Strengthen infrastructure construction for medicine industry, and issue analysis report on medicine circulation industry and analysis report on circulation of varieties of traditional Chinese medicinal materials, which changed the long-lasting situation of deficiency in statistics in this industry. 5 industrial standards have been issued and industrial training has been carried out. Select four circulation spots of traditional Chinese medicinal materials including Chengdu, Bozhou, Baoding and Yulin to start the pilot project of tracing system for circulation of traditional Chinese medicinal materials.

Third, actively improve consumption environment for residents

Clean up and rectify illegal collection of charges, and regulate relations between retailers and suppliers. From December of 2011 to September of 2012, MOFCOM and four other departments including National Development and Reform Commission and Ministry of Public Security carried out a campaign of rectification of large-scale retailers’ illegal collection charges from suppliers. Among the 76 large-scale retailing enterprises subject to the rectification, 44 of them did not charge promotion service fees according to rules, involving 168 million yuan; 55 of them charged illegal fees of total 144 billion yuan. Through the rectification, over 300 charging items were adjusted or abolished, and clear pricing has been implemented.

Regulate prepaid card management, and promote worry-free consumption. Administrative Measures on Single-use Commercial Prepaid Card (Trial) (MOFCOM Announcement No. 9 of 2012) was issued, which provides legal basis for normalized management, and lays foundation for the related mechanism. It pushed forward the establishment of a professional committee for regulating commercial prepaid card by China General Chamber of Commerce. MOFCOM organized systematic training for provincial-level commerce departments and 330 municipal-level commerce departments.

Strictly regulate direct sales, and promote its healthy development. Improve information platform and statistical systems, and realize full-coverage statistics on direct sale enterprises funded by both domestic and foreign capital. Promote the improvement of the administrative mechanism on examination and approval for direct sale, and increase work efficiency. Work on standardization, and advance the establishment of industrial association on direct sale. By November 2012, there have been 31 direct sale enterprises, with 225 branches, 2,495 direct sale products, 2.31 million direct salesmen, and direct sales value of 16.3 billion yuan.

Fourth, effectively promote credit building in commerce field

Actively carry out credit construction in commerce field. Select ten cities such as Beijing and Shanghai with good conditions for credit building, and focus on four tasks of ensuring commodity quality, enhancing service quality, insisting on good-faith operation and establishing commercial brands, so as to carry out pilot projects on credit construction in commerce field. According to the deployment of central committee on civilization, focusing on food and medicine security and IPR protection, we carried out special education activities on commerce moral field. With the theme of “Calling for good faith in business and together building a harmonious society”, “Publicity Month of good-faith in business” was carried out, and “network exhibition on Chinese trustworthy enterprises” was held by 16 departments including MOFCOM, the Publicity Department of CPC Central Committee, and Development and Reform Commission, etc.

Establish data platform of credit files. Establish data exchange platform for enterprises’ credit files, draft Administrative Rules on Data Exchange Platform for Enterprises’ Credit Files, promote collection and inter-change of basic credit information and statistics, and set up an incentive and restraint mechanism of “benefits from good faith, and punishment from breaking faith”. Together with State Asset Regulatory Commission, MOFCOM will continue to promote credit construction in different industries, guide industrial associations and chambers of commerce to strengthen standardized administration on industrial credit evaluation, and expand evaluation application channels.

Adopt multi-measures to support small- and micro business. Continue to implement policies of providing financial guarantees for small and medium trade enterprises and subsidizing credit insurance for domestic trade. Implement supporting polices for business circles, and by October 31, 40 business circles in Beijing, Jinan, Shanghai, Changsha, Nanjing, Hangzhou, Tianjin and Xi’an got loans of 4.12 billion yuan accumulatively. Pilot projects on commercial factoring was carried out in Tianjin Binhai New Area and Shanghai Pudong New Area, which aimed at solving problems such as insufficient liquid capital and lack of refinancing channels.

Vigorously promote credit-based consumption. In order to propagate consumption on credit, promote credit consumption mode, and expand domestic consumption demand, we organized the activity of “discounts for credit consumption” in “consumption promotion month of 2012”. Two retailing enterprises including Suning and six financial institutions including ICBC and Beijing Bank Consumer Finance Company participated in the activity, and carried out favorable policies such as “zero commission charge, zero down payment, and low interest rate” and promotion activities. During the activity, individual consumer credit of 19.8 billion yuan was newly increased in the six financial institutions, up by 24.5% year on year.

(All information published on this website is authentic in Chinese. English is provided for reference only.)