Administrative enforcement law to come into force next year

The Administrative Enforcement Law, a major piece of legislation to regulate administrative acts, was finally adopted and officially promulgated at the 21st meeting of the 11th National People’s Congress on 30 June after long discussions stretching back over the past 12 years. Effective as of 1 January 2012, the law primarily governs the following areas.

Definition

The law clarifies and defines what administrative enforcement is. Administrative enforcement comprises compulsory administrative measures and their implementation. The law also sets out various types of compulsory administrative measures and types of administrative enforcement. Specifically, compulsory administrative measures include measures such as restrictions on civil liberty; the sealing of premises, facilities or property; the seizure of property; and the freezing of deposits and remittances. Administrative enforcement includes the imposition of fines; the transfer of deposits or remittances; the auction or disposal of sealed or seized premises, facilities or property according to law; the removal of obstacles; restitution; and execution on behalf of others.

Major principles

In the section of the law which outlines general legal principles, emphasis is placed on some principles which must be observed when administrative enforcement is implemented. These principles are: (1) administrative enforcement is governed by law, and should be implemented in accordance with statutory authority, scope, conditions and procedures; (2) the use and implementation of administrative enforcement should be appropriate. If administrative purposes can be achieved through non-compulsory measures, administrative enforcement should not be used; (3) administrative enforcement should be accompanied by education; and (4) administrative authorities and their staff should not use their administrative enforcement powers for the benefit of themselves or their authorities.

Business Law Digest is compiled with the assistance of Haiwen & Partners. The authors can be emailed at baochen@haiwen-law.com. Readers should not act on this information without seeking professional legal advice.