Hainan FTP rolls out 1st list of items under the system of market access upon commitment
On December 22, Hainan Free Trade Port rolled out the first list of items subject to the system of market access upon commitment at the press conference held to interpret the Decision of the Hainan Free Trade Port on Cancelling Six Administrative Licensing Items such as Accrediting the Quality Testing Entities for Grade B Water Conservancy Projects (hereinafter referred to as the “Decision”) and the Provisions of the Hainan Free Trade Port on Implementation of the System of Market Access upon Commitment (hereinafter referred to as the “Provisions”).
According to the Decision, the system of market access upon commitment shall be adopted in the Hainan Free Trade Port after canceling six administrative licensing items, including accrediting the quality testing entities for Grade B water conservancy projects, issuing licenses to operate high-risk sports (e.g., swimming, rock climbing and skiing), issuing licenses to produce important industrial products (e.g., stainless steel pressure cookers and aluminum pressure cookers), issuing licenses to produce and operate edible fungi (e.g., cultivars for Auricularia auricula, Lentinula edodes, Agaricus bisporus and Pleurotus ostreatus), issuing licenses to produce and operate silkworm eggs (parent silkworm eggs), and accrediting entities flying unmanned free balloons and captive balloons.
“These six items will from now on apply the system of market access upon commitment, which is essentially different from the past system of commitment upon notification.” As introduced by Liu Fengshuang, member of the Leading Party Members’ Group and Chief Engineer of Hainan Provincial Administration for Market Regulation, by their very nature, the system of commitment upon notification is an administrative licensing item for retaining licensing and approval, while the system of market access upon commitment a filing item for cancelling licensing and approval, “Changing the nature into a filing item requires simpler materials and procedures.”
According to the Provisions, in fields with mandatory standards except those subject to access administration by the state for involving national security, social stability, the red line of ecological protection, and major public interests, licensing and approval shall be cancelled in accordance with the law, a sound filing system shall be established, and market players must make a written commitment to meet the relevant requirements and submit relevant materials for filing before any investment and business activities. Relevant competent departments shall notify market players on a one-time basis of the conditions, mandatory standards, and technical requirements for related investment and business activities. Materials allowed to be supplemented within a certain period of time after filing may be accepted on the condition that they are incomplete.
The Provisions also clarifies the division of responsibilities in the reform of the system of market access upon commitment, makes transitional arrangements and convergence provisions for various situations that may occur before and after the reform, and promotes mutual recognition of filing certificates across provinces and regions. The system of market access upon commitment, however, does not apply to market players on the list of serious untrustworthiness.
In order to strengthen interim and ex-post regulation, the Provisions advocates such methods as verification, “oversight through inspections by randomly selected inspectors of randomly selected entities and the public release of inspection results”, regulation of key points, and credit supervision. It also requires distinguishing the characteristics of different illegal acts and their social harmfulness, following the principle of penalties commensurate with the gravity of illegal activities, and setting corresponding punishment measures.
“The market access upon commitment puts forward higher requirements for the integrity of market players.” According to Wu Weimin, Deputy Director of the Third Legislative Division of the Hainan Provincial Department of Justice, market players making false commitments shall be ordered by relevant competent departments to take corrective action within a time limit, be fined, or receive other punishments. “We will also release the Several Provisions on the Punishment for Dishonesty in Areas Implementing the System of Market Access upon Commitment in Hainan Free Trade Port as appropriate.”
“Reforming the system of market access upon commitment may start with simplifying licenses to significantly lower market access, promote a transition in government functions, and allow both market players and people to enjoy the reform dividend.” He Jifeng, member of the Leading Party Members’ Group of Hainan Provincial Department of Business Environment Construction and Deputy Director of the Office of the Hainan Provincial Special Class for Optimizing Business Environment praised the system of market access upon commitment, which aligns closely with the targets including the minimum market access, the simplest power list, the best approval service, and the most effective supervision services, as an important reform to implement the Master Plan for the Construction of Hainan Free Trade Port as well as another effective move to optimize Hainan’s business environment.
Copyright 2021 Foreign Affairs Office of Hainan Province. All rights reserved.
Copyright 2021 Foreign Affairs Office of Hainan Province.
All rights reserved.