The Standing Committee of the Provincial People's Congress issued the Several Provisions on Punishment for Violation of Hainan Free Trade Port's Market Access Commitment System

(Adopted at the 7th meeting of the Standing Committee of the 7th People's Congress of Hainan Province on November 24, 2023)

Article 1 In order to prevent and punish serious breaches of trust in violation of the market access commitment entry system of Hainan Free Trade Port, these Regulations are formulated in accordance with the Hainan Free Trade Port Law of the People's Republic of China, the Hainan Free Trade Port Social Credit Regulations and other laws, regulations and relevant national regulations, and in combination with the actual situation of Hainan Free Trade Port.

Article 2 The relevant departments of the people's governments at or above the county level shall implement credit supervision on operators who apply the market access commitment entry system in accordance with their respective duties, and impose credit penalties on their serious breaches of trust in accordance with the law.

Article 3 If an operator violates the market access commitment entry system management regulations and has any of the following circumstances, the relevant departments of the people's government at or above the county level shall include it in the list of serious dishonest entities in the market access commitment entry system (hereinafter referred to as the list of serious dishonest entities):

(a) failing to register or submitting false materials for registration to carry out investment and business activities, and refusing to make corrections after being ordered by the relevant departments, and being subject to administrative penalties;

(b) after registering, failing to submit materials within the agreed period or submitting materials that do not meet the requirements, and carrying out investment and business activities, and refusing to make corrections after being ordered by the relevant departments, and being subject to administrative penalties;

(c) other violations of the market access commitment entry system management regulations, which should be included in the list of serious dishonest entities in accordance with laws, regulations and relevant national regulations.

Article 4 The relevant departments of the people's government at or above the county level shall publicize the list of serious dishonest entities to the public through Credit China (Hainan) and the National Enterprise Credit Information Publicity System (Hainan) within 20 working days from the date of making the decision to include them in the list of serious dishonest entities.

Article 5 The relevant departments of the people's government at or above the county level shall implement the following dishonest punishment measures on operators included in the list of serious dishonest entities:

(a) Prohibit them from engaging in business activities in the field of market access commitment and entry system that they violate;

(b) List them as key supervision targets, increase daily supervision and inspection efforts, increase the proportion and frequency of random sampling, and strictly supervise them according to law;

(c) In administrative management and public services, convenient measures such as the notification and commitment system shall not be applied;

(d) Credit points shall be deducted and credit rating shall be lowered in public resource transactions;

(e) Restrict participation in government investment or government-social capital cooperation construction projects, or increase the margin ratio;

(f) Restrict the enjoyment of government preferential policy support and restrict the application for fiscal funding projects;

(g) Restrict participation in commendations and awards, cancel the qualification to participate in advanced and excellent evaluations, and revoke relevant honors;

(eight) Other measures prescribed by laws and regulations.

For operators listed in the list of seriously dishonest entities, their legal representatives, responsible persons and other directly responsible persons shall not be newly appointed as legal representatives, responsible persons, directors, supervisors and senior managers of operators subject to the market access commitment entry system before they are removed from the list.

Article 6 Credit reporting agencies may collect information on seriously dishonest behaviors that violate the market access commitment entry system in accordance with the law and provide inquiries to financial institutions.

Financial institutions such as commercial banks, insurance companies and securities companies may increase loan interest rates, property insurance premiums and transaction commissions for seriously dishonest entities that violate the market access commitment entry system in accordance with the risk pricing principle, or restrict the provision of loans, insurance, sponsorship, underwriting and other services to them in accordance with the law.

Article 7 If an operator has been included in the list of seriously dishonest entities for three years, the relevant departments of the people's government at or above the county level that made the decision to include it in the list of seriously dishonest entities shall remove it and lift the relevant dishonest punishment measures. If the measures of restricting business activities and employment in accordance with laws and regulations exceed three years, they shall be implemented according to the actual restriction period.

Article 8 If an operator has been included in the list of serious dishonest entities for one year and meets the following conditions, it may apply to the relevant departments of the people's government at or above the county level that made the decision to include it in the list of serious dishonest entities in accordance with these regulations for early removal:

(a) It has consciously fulfilled the obligations stipulated in the administrative penalty decision;

(b) It has taken the initiative to eliminate harmful consequences and adverse effects;

(c) It has not been subject to heavier administrative penalties for violating the market access commitment entry system management regulations or for illegally engaging in business activities in the market access commitment entry system field.

In accordance with the provisions of laws and regulations, if the period for implementing the corresponding dishonest punishment measures has not expired, it shall not apply for early removal.

Article 9 These regulations shall come into force on January 1, 2024.