There are some affairs that can be conducted by common people only upon approval by the government departments. This is called the administrative license. The Law of the People's Republic of China on Administrative Licenses which formally came into force on July 1st, 2004 regulates conducts of administrative license of the government, which not only further transform functions of the people's government but also bring mange changes to the life of common people.
More sui juris (decision-making powers) in ordinary people
[Case] The Working Committee of the Communist Party of China (CPC) and Administration Commission of Longbao And Wuqiao Emigration Development Zone under Wanzhou District, Chongqing Municipality issued instructive documents early or late to list the Eagle-branded mineral water as the designated drinking water within the governing zone, and require any and all towns and subdistricts shall drink this branded water compulsorily.
[Comment] Though this conduct has been corrected by the Committee of the CPP and Government of Wangzhou District, this case calls for our thinking and caution. Drinking whatever branded mineral water shall, undoubtedly, be subject to full option of consumers. That the government departments deprive consumers' right of choice by issuing red documents is the arbitrary infringement of sovereign rights of consumers.
[Applicable Provision] With regard to the issue that governments at all levels shall exercise their powers strictly subject to legal authorities and procedures, the Law on Administrative Licensess provides that the administrative authorities may not establish administrative license on any and all affairs that can been independently determined by natural persons, legal persons or other organizations themselves and effectively adjusted by the market competition mechanism.
No need to run around in government departments
[Case] One joint venture in He'nan Province suffered bureaucratism in its initial stage of incorporation in 2000. In order to complete formalities for joint venture, it played "ball" with the administration of industry and commerce, the foreign trade and economic cooperation commission, and development planning commission for over ten days. Even it went to the same government department for 11 times just for approval of one certificate.
[Comment] In the past, many companies ever met similar problems like this company. It is hard to enter the gate of government departments, and harder to get things settled. Common people are always exhausted both physically and mentally.
[Applicable Provision] The Law on Administrative Licensess acknowledges the principle of convenience for the public under which principle the administrative bodies are required to reduce stages and lower costs as less as possible, and enhance working efficiency and provide quality services in implementing administrative licenses. For instance, combinative or unified disposal system is established. From now on, there will be more and more administrative affairs to be operated like disposed in a supermarket, which will surely lead the best direct benefits to common people.
Never infinite waiting for review and approval
[Case] According to a statistics surveyed in a southern China's city, one of China's five special economic regions, during the period from proposing the feasibility study report up to start production by one high-tech enterprise, totally reviews and approvals by 13 government departments, submission of 15 reports, stamping of 54 official seals, and time of 6 months at least are needed.
[Comment] Such a long waiting was so common to the ordinary people. Indefinite period for administrative license and over prolonged delay cause some applicants to bribe the administrative authorities for approval as soon as possible. As a result, many corruption phenomena arise.
[Applicable Provision] The Law on Administrative Licensess expressly defines the period for administrative license granted by the administrative authorities. For example, State Administration for Industry and Commerce re-adjusted the registration procedures for enterprise applicants. Any application for enterprise application needs deliver only one email to the administration of industry and commerce which will inform the applicant of all required supporting documents in one reply. In case all required materials are complete and legal, all necessary formalities for registration can be completed in the same day.
Those whose interests are involved can speak
[Case] There was a provision by Shanghai Commission of Commerce that any project intended to open a mega mall with an area more than 10,000 m2 at any place outside Shanghai's circuit highways, a hearing will be headed and organized by Shanghai Chain Commerce Association and the administration of industry and commerce will review and issue license to the qualified based upon conclusions of such hearing.
[Comment] January 2002 witnessed the railway pricing hearing, China's first nationwide hearing for administrative decision-making. From that time on, hearing system furnishes common people opportunities in participating in government decision-making which eventually and truly comes to the place under sunshine.
[Applicable Provision] Based upon doctrines of open, fairness and just, the Law on Administrative Licensess expressly prescribes that hearing shall be held in case a hearing is required in implementation of administrative license according to law.
No charges for completion of formalities for administrative review and approval
[Case] A survey on administrative license of Shanghai for 2000 has revealed that one of automobile companies in Shanghai totally paid RMB 191,000,000 for various costs and expenses of administrative licenses during its incorporation, which accounts for 1.36% of the total investment capital of this new company.
[Comment] Ordinary people had many words to say to arbitrary charges through administrative licenses by some of government departments for a long time. They even described that administrative licenses were equal to charging. With regard to this concern, State Administration of Taxation ever provided that any review and approval of use and administration of invoices, any review and approval of acquirement qualification of invoices, or any license to sell stamp duties on a commission basis shall not subject to any costs or expenses.
[Applicable Provision] It is expressly provided in the Law on Administrative Licensess that no administrative authority has the right to charge any implementation of administrative license or supervision and inspection after administrative license unless laws or regulations otherwise provided where revenue and expenditure are separate and any and all revenues shall be submitted to the treasurer.
Say NO to law enforcement conducts that disturb life of common people
[Case] One of bosses of moon cake production complained to our correspondent, "What troubles me worst is to cope with all kinds of checks and inspections, law enforcers from one department immediately followed by law enforcers from another department. All of them are your honored. I cannot offend any of them."
[Comment] Many enterprises are meeting the same or similar various checks and inspections which cause many troubles and burdens to them. In practice, many of administrative licensing items can be inspected for their compliance with law by verifying supporting documents. For example, the issue whether products produced by some enterprise under the production license for industrial products meet the required quality standards can be fully recognized by its presenting the inspection report issued by the professional technical organization.
[Applicable Provision] It is provided in the Law on Administrative Licensess that the administrative authorities shall fulfill their duties of supervision and administration by inspection in written form in order to avoid disturbance to licensees to the largest possible extent and prevent law enforcement that disturbs life of common people.
No necessity to pay bills for government conducts
[Case] In campaign fighting against bird flu, the state compensation is RMB 10 for each poultry that is infected in the epidemic-stricken spot and killed compulsorily. "There are totally 1780 chicken killed compulsorily in my home. I, of course, felt very upset at the slaughtering moment. Nevertheless, the government paid much attention to our interests and losses. And part of compensation funds are granted to us very soon," Xuan Lipu, a poultry-man in Chaixin Village, Dongsheng Township, Jingyuan County, China's northwest Gansu Province, told the correspondent.
[Comment] Compulsory immunization and killing of birds are government conducts. Such government conducts are made duly upon law, but cause losses to poultry individuals and enterprises as well. Accordingly, governments shall make certain compensation to such losses. The whole disposal approach is demonstrating the doctrine of reliant protection which is prevailing internationally.
[Applicable Provision] According to the Law on Administrative Licenses, the state administrative organs shall not arbitrarily alter any and all licenses which already become effective. Where significant changes have occurred to the objective circumstances upon which such licenses are based and the government has to make alteration in licenses in order to meet requirements of public interests, the government shall make compensations to losses suffered by any and all individuals and entities involved.
Three Key Conveniences to citizens' rights safeguarding
[Case] Some days ago, Ni Dengcai and Zhu Zhenzhu, two farmers of Jiangxia District, Wuhan City, brought lawsuits to the People's Court of Jiangxia District against Husi Town Government for disputes arising out of land contracting.
[Comment] Thanks to population of awareness of rule of law, these few years see more and more cases ordinary people vs. administrative body year by year. In many cases, the government department involved as one party is are more and more common to see. Formal promulgation of Law on Administrative Licenses may create a platform on which a further equal dialog may be made between common people and the government.
[Applicable Provision] The Law on Administrative Licenses provides three key conveniences to citizens' rights safeguarding. Firstly, duties and liabilities of both subject and licensing authorities are expressly defined, which facilitate citizens to safeguard their own rights. Secondly, some of citizens' rights that are not defined in the past are provided. For instance, the right to request hearing by the party involved in the case, and the right to claim compensation upon withdrawal of licenses. Thirdly, many systematic provisions are raised to provide litigation standards and win-lost standards to litigations initiated by citizens.