Article 1 In order to strengthen the safety administration of
hazardous chemicals, to regulate the operation and marketing of
hazardous chemicals and to guarantee the safety of the lives and
property of the people, the present Measures have been formulated in
accordance with the Law of the People's Republic of China on Safe
Production and the Regulations on the Safety Administration of
Hazardous Chemicals.

Article 2 Those engaging in the operation and marketing of hazardous
chemicals within the People's Republic of China shall be governed
by the present Measures.
The present Measures shall not apply to the operation of explosives,
radioactive materials, nuclear energy materials to be used for civil
purpose and urban gas.

Article 3 The state shall apply a license system for the operation
and marketing of hazardous chemicals. An entity operating and
marketing hazardous chemicals shall obtain the operating license for
hazardous chemicals (hereinafter referred to as the operating
license) pursuant to the present Measures, and shall apply for
registration with the department of industry and commerce
administration on the basis of the operating license pursuant to
law. Without the operating license or industry and commerce
registration, no entity or individual may operate or market
hazardous chemicals.

Article 4 Operating licenses are divided into type A and type B. An
entity with the operating license of type A may operate and market
highly toxic chemicals and other hazardous chemicals; an entity with
operating license of type B may only operate and market the
hazardous chemicals other than highly toxic chemicals.
Operating licenses of type A shall be subject to examination and
approval, and issued by the departments in charge of economy and
trade of the people''s governments of the provinces, autonomous
regions and municipalities directly under the Central Government or
the departments of safe production supervision and administration
entrusted thereby (hereinafter referred to as license-issuing bodies
at the provincial level); operating licenses of type B shall be
subject to examination and approval, and issued by the departments
responsible for the comprehensive safety supervision and
administration of hazardous chemicals of the people''s governments
at the level of city divided into districts (hereinafter referred to
as license-issuing bodies at the city level). The operating license
of product oil shall be subject to the administration of the
operating license of type A.
Article 5 The State Bureau of Safe Production Supervision and
Administration shall be responsible for the supervision and
administration of the examination and approval, and issuance of the
operating licenses of the whole country.
The license-issuing bodies at the provincial level and those at the
city level shall be responsible for the supervision and
administration of the operating licenses within their respective
administrative areas.
Chapter II Application and Examination & Approval of Operating
License
Article 6 An entity operating and marketing hazardous chemicals
(hereinafter referred to as operating entity) shall meet the
following conditions:
1) The places, facilities and constructions for operation and
storage shall meet the Criteria for Fire Control in Construction
Design (GBJ16), the Provisions on the Safety of Explosion Hazardous
Places and the Rules on Fire Control of Warehouses etc, and the
constructions shall pass the examination conducted by the bodies of
public security and fire control before being accepted;
2) The conditions for operation and storage shall meet the Practice
Conditions and Technical Requirements for Operating Enterprises of
Hazardous Chemicals (GB18265), and the General Rules on Storage of
Common Hazardous Chemicals (GB15603);
3) The major principals, executives, safe production management
personnel and business staff of the entity shall receive
professional training, pass the examination and obtain the
qualifications for their respective positions;
4) Having sound safety management systems and safety position-based
operation rules;
5) Having its own advance scheme on emergent accident rescue.
Article 7 An entity applying for operating license may choose the
qualified safety evaluation agency by itself to make safety
evaluation of its operation conditions.
Article 8 A safety evaluation agency shall evaluate whether the
entity applying for operating license meets the all the conditions
provided for in Article 6 of the present Measures, and produce
safety evaluation reports.
Article 9 An entity applying for type A operating license shall file
the application with the license-issuing body at the provincial
level, an entity applying for type B operating license shall file
the application with the license-issuing body at the city level, and
submit the following materials:
1) Application Form for Operating License for Hazardous Chemicals;
2) Safety evaluation report;
3) Copies of the documents of examination and acceptance of fire
control conditions of the places and constructions for operation and
storage;
4) Copies of the certifications of title or lease of the places and
facilities for operation and storage;
5) Copies of the professional training certificates of the major
principals, executives, safe production management personnel and
business staff of the entity;
6) Safety management systems and safe post operation rules.
Article 10 A license-issuing body shall, within 30 days after
receiving the application, make examination and on-spot verification
of the materials submitted by the applicant, and issue the operating
license to the applicant that meets the conditions; and notify by
written form the applicant that fails to meet the conditions, and
explain the reasons.
Article 11 An operating license shall indicate the following
information:
1) Name of the operating entity;
2) Domicile of the operating entity (address and operation place);
3) Name of the legal representative or principal of the operating
entity;
4) Economic type of the operating entity;
5) Approved business scope (names shall be indicated for highly
toxic chemicals, and categories shall be indicated for other
hazardous chemicals; oil names shall be indicated for product oil);
6) Date of license issuance and valid term;
7) Certificate number.
Article 12 If an operating entity alters, expands or removes its
operation or storage place, or expands the approved business scope,
it shall apply for a new operating license in advance.
If an operating entity alters its name, economic type or the legal
representative or principal registered, it shall apply for going
through alteration formalities and for replacing the operating
license with the original license-issuing body within 20 workdays
from the day of alteration.
Article 13 The valid term of an operating license is 3 years. If an
operating entity continues the operation of hazardous chemicals
after the expiration, it shall apply for replacing the license with
the original license-issuing body within 3 months before the
expiration of the valid term of the operating license, and draw the
new license after passing the examination.
Article 14 A license-issuing body shall notify the departments of
public security and environment protection at the corresponding
level about the issuance of operating licenses in good time.
Article 15 An operating entity may not transfer, trade, lease, lend,
forge or alter the operating license.
Chapter III Supervision and Administration of Operating Licenses
Article 16 A license-issuing body shall stick to the principles of
openness, fairness and justice, and, in the examination and approval
and issuance of operating licenses, strictly follow the conditions
and procedures provided for in the laws, regulations, rules and
standards.
Article 17 A license-issuing body shall strengthen the supervision
and administration of operating licenses, and establish and perfect
the systems of examination and approval, and issuance archive
management of operating licenses.
Article 18 A license-issuing body at the city level shall report the
examination and approval as well as the licenses issued each year to
the license-issuing body at the provincial level for record, and
issuance of operating licenses within its administrative area of the
year. The license-issuing bodies at the provincial level shall
report the examination and approval as well as the licenses issued
within its administrative area of the year to the State Bureau of
Safe Production Supervision and Administration for record.
Article 19 A license-issuing body shall supervise and inspect the
entities that have obtained the operating licenses within its
administrative area. An operating entity shall accept the
supervision and inspection carried out by the license-issuing body
pursuant to law, and may not refuse or frustrate without due causes.
Chapter IV Penalty Procisions
Article 20 Those engaging in the operation of hazardous chemicals
without the operating license shall be punished by the
license-issuing bodies at the provincial level or city level
pursuant to Article 57 of the Regulations on the Safety
Administration of Hazardous Chemicals.
Article 21 If an operating entity conducts any of the following acts
in violation of the present Measures, the license-issuing body shall
revoke its operating license:
1) Obtaining the operating license by providing false certifications
or other deceitful means;
2) No longer meeting the basic conditions for operating and
marketing hazardous chemicals;
3) Transferring, trading, leasing, lending, forging or altering the
operating license.
Article 22 If the functionary of the license-issuing bodies seek
private benefit through wrongful means, abuse their powers, commits
frauds, or neglect their duties, they shall be given administrative
sanctions of demotion or removal pursuant to Article 55 of the
Regulations on the Safety Administration of Hazardous Chemicals; if
a crime is constituted, the offender shall be subject to criminal
liabilities.
Article 23 If an agency undertaking the safety evaluation produces
false evaluation reports, the department of safe production
supervision and administration at or above the provincial level
shall confiscate the illegal gains and impose on that agency a fine
of no more than 30,000 yuan; if there is no illegal gains, a fine of
no more than 20,000 yuan shall be imposed; and the department that
granted qualification to that agency shall be suggested to revoke
the qualification certificate; if a crime is constituted, the
offender shall be subject to criminal liabilities.
Chapter V Supplementary Rules
Article 24 If a production entity of hazardous chemicals markets the
hazardous chemicals produced thereby, it need not apply for the
operating license any more, however, if it markets hazardous
chemicals not produced by it or sets up marketing spots outside the
factory, it shall still apply for the operating license.

Article 25 The entities that have obtained the operating license
before the present Measures take effect shall apply for a new
operating license within 6 months from the day on which the present
Measures take effect. Those failing to do so may not continue the
operation and marketing of hazardous chemicals any more.

Article 26 The operating licenses shall be uniformly printed by the
State Bureau of Safe Production Supervision and Administration.

Article 27 The power to interpret the present Measures shall be
authorized to the State Bureau of Safe Production Supervision and
Administration.

Article 28 The present Measures shall enter into force on November
15, 2002.

Bright Jon, Attorney-at-law   Fax: +86-512-553516040 
email@colaw.cn