On April 8 2009, the Legislative Affairs Office of the State Council of People's Republic of China published draft document of Administrative Rules on Defective Products Recall System (click here for details) or soliciting public opinions.

The draft Law applies to any marketed products in P.R. China except medicine and military products.

Defective products are the products that are harmful to people's health and safety as a result of improper designs, manufacture processes or indications.

The producers, importers and agents should immediately cease production and sales of defective products and recall these products upon confirmation of defects.

The draft Law requires that in order to prevent, control and eliminate the harms resulted from the defects, producers, importers and agents of products marketed in China have the responsibilities to:

1. Notify the public, complement or correct instructions for use of products;
2. Notify the sellers and service operator to stop to sale, use, lease and other business activities of defective products;
3. Withdraw, return, replace, repair and destroy defective products.

The draft Law also stipulates Investigation and Confirmation of Defects (Chapter 2), Implementation of Recall (Chapter 3), Obligations of Producers, Retailers and Service Operators (Chapter 4), Supervision (Chapter 5) and Legal Liabilities (Chapter 6).

Violators could face fines from RMB 200,000 up to RMB 500,000 (about U.S. $74,530). Criminal punishment would be imposed if possible.

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