On Dec. 29, 2016, the State Administration for Industry and Commerce (the SAIC) issued the List of Matters Subject to Random Inspections by the SAIC (First edition) (the List). The issuance of the List is in response to the State Council’s earlier notice dated May 23, 2016, calling for the establishment of an expost monitory system and development of lists of matters subject to random inspections. According to the SAIC, the List is not exhaustive and the local branches of SAIC may add more matters to the local versions of the list subject to random inspections based on their local practice and actual situation.

For each matter that is subject to random inspection, the List set out a description of the matter, the level of SAIC’s local branches which are responsible for the inspection, the legal basis for the inspection, and the inspection criteria. The List covers 12 areas in which the SAIC and its local branches have been authorized to enforce the relevant laws and regulations. Below are the key inspection areas on the list:

> Direct sale related illegal activities;

> Product quality;

> Infringement upon consumers’ rights and interest;

> Enterprise information publicity;

> Enterprise registrations;

> Enterprise annual reports;

> Trademark related illegal activities.

All companies in China need to regularly deal with the SAIC or its local branches for a wide range of regulatory matters, from corporate registrations to product liabilities. As the List can also be viewed as a list of essential “dos and don’ts” for companies in China, it is important for them to review the List and use the items on the List applicable to them as indicators in their internal compliance assessments and routine self-examinations.

- List of Matters Subject to Random Inspections the State Administration for Industry and Commerce (First edition)

- 《工商总局随机抽查事项清单(第一版)》

- Issuing authority: State Administration for Industry and Commerce

- Date of issuance: Dec. 29, 2016