Procedures of Shanghai Municipality on the Security Administration of Seal Engraving Industry

(January 4, 2018)

Article 1 (Purpose and Basis)

With a view to strengthening security administration of the municipal seal engraving industry, promoting its healthy development and maintaining social order, these Procedures are formulated in accordance with the provisions of the Regulations of Shanghai Municipality on Security Administration of Special Industries and Public Places.

Article 2(Application Scope)

These Procedures apply to all the seal engraving business units, individual businesses and the units or individuals that need seal engraving within this Municipality.

Article 3 (Competent Departments)

The Municipal Public Security Bureau is the competent department for security administration of seal engraving industry in this Municipality. District public security departments are responsible for the seal engraving security administration within their jurisdiction.

Article 4(Responsibilities of Relevant Departments)

The municipal departments of industry and commerce, taxation, pricing shall, in accordance with their respective duties and functions, cooperate with public security departments for security administration of seal engraving industry.

Article 5 (Functions of Industry Association)

The municipal seal industry associations shall cooperate with public security departments for security administration of seal engraving industry.

Article 6 (License System)

This Municipality adopts special trade license system for seal engraving industry.

Those that have not obtained Shanghai Special Trade License  (hereinafter referred to as the License) shall not engage in seal engraving business.

The establishment of seal engraving stalls outside the approved locations by the Licenseis prohibited.

Article 7(Seal Engraving Business License Application Requirements)

The applicant units for seal engraving business shall meet the following requirements:

1. availability of fixed seal engraving site and seal engraving device;

2. layout of operation site and facilities in compliance with the requirements of public security administration;

3. having internal management system complying with security requirements; and

4. availability of the legal representative and person in charge of operations that meet the requirements

Article 8 (Special Requirements for Legal Representative and Person Responsible for Operation)

The persons with the following behaviors shall not serve as a legal person or person in charge of operations of seal engraving unit:

1. the legal person or person in charge of seal engraving operation unit whose license has been revoked less than three years;

2. the person who was given criminal penalty for crimes of threatening national security, public security and disrupting socialist market economic order, infringing on property, hindering social management order, corruption and bribery, with its execution period not more than 5 years; or

3. persons that serve in state organs.

Article 9(Practitioners Requirements)

Seal engraving business units or employees hired by individual businesses shall hold legal identity while foreign personnel shall comply with other requirements of the State and this Municipality.

Article 10(Application Approval Process)

Units that intend to engage in seal engraving businesses shall submit a written application to the police station which is located in vicinity of the operation site.

The police station in locality shall complete the examination and review within 10 days after receipt of the application and forward preliminary comments to the district public security departments for approval; district police department shall complete the review within 10 days after receipt of the preliminary comments. The License shall be given by the district police department to those that meet the operation requirements; the applicants that do not meet the operating requirements shall be given the written notice by the district public security department. Lease, transfer, copy, obliterate or forge of the License is prohibited.

Article 11 (Altering Procedures)

Seal engraving business units that alter operating mode, business scope, organization or firm name, business address, approved layout facilities, the legal representative or person in charge of operations shall, within 15 days from the alteration date, make filing in the district public security department.

Article 12(Annual Inspection System)

This Municipality conducts annual appraisal system to the License. The units with the License shall be subject to annual review by the issuing police department.

Article 13 (Ordinary Seal Engraving)

When undertaking and engraving item seal, the business unit or individual business shall examine the letter of recommendation and other supporting credentials; when undertaking and engraving name seal and other artistic seals, they shall examine the identity card of the consigner. Seal engraving business unit or individual businesses shall register and keep the examination record for three years for future reference.

Article 14(Official Seal Engraving)

Unit or individual business that needs an official seal engraved shall, by presenting the certificate issued by the competent department or the operation license issued by the industrial and commercial department, as well as the identity certificate of the legal representative, have the seal engraved at a seal engraving business unit. If it is handled by an agent, a power of attorney and the agent’s identity certificate shall also be provided.

A seal engraving business unit shall, within five working days from engraving an official seal,   submit such information as the name, legal representative, name of the agent, and moulage of the unit or individual business consigning the official seal engraving to the public security department for filing on record.

The public security department shall establish a unified public security administration information system for official seals, and realize such functions as on-line filing and information collection for official seal engraving.

The public security’s filing of official seal engraving shall be conducted by two-level administration by the Municipality and districts, the specific procedure of which shall be otherwise provided by the Municipal Public Security Department.

Article 15(Prohibited Acts)

Units or individual businesses that need an official seal engraved shall not consign the seal engraving to any unit or individual business that operates unlicensed business of official seal engraving.

Article 16(Official Seal Replacement)

Units or individual businesses that need official seal replacement shall return the original seal to the businesses of official seal engraving for scrap handling, and go through the re-registration formalities of official seal engraving in accordance with Clause 1, Article 14 of these Procedures.

Where there are other provisions on the scrap of official seals in laws, rules or regulations, such provisions shall prevail.

Article 17 (Re-engraving of Lost or Stolen Official Seal)

Units or individual businesses that have the official seal lost or stolen shall publicize the notice for void in publicly issued newspapers or magazines and go through re-registration formalities with the original printed notice in accordance with Paragraph 1of Article 14 of these Procedures.

Article 18(Regulations for Undertaking Official Seal Engraving)

Units of official seal engraving shall comply with the following provisions:

1. check and collect the filing materials for official seal engraving, register the name of units or individual businesses that consign seal engraving, as well as the name of their legal representative and agent and engrave the seal in accordance with the provisions of seal characters, style, quantity, and specifications;

2. improve the management rules of registration, engraving, storage, pickup and archiving;

3. scrap the seal in accordance with the provisions, and submit relevant information on seal scrapping to the public security department;

4. register the official seal not picked up within 30 days from the due day of seal pickup, and send it to the public security department for disposal; and

5. make regular report on official seal engraving to the public security department.

Article 19(Obligations of Seal Engraving Business Units and Their Employees)

Seal engraving business units, individual businesses and their employees shall comply with the relevant provisions of the security administration of the State and this Municipality.

Seal engraving business units or individual businesses shall report immediately to the police department once they find the criminal activity or criminal suspects, suspicious items within the operation sites.

Article 20 (Security Precautions Liability System)

Security precautions liability system is implemented in seal engraving industry in this Municipality.

The legal representative or person in charge of the seal engraving business unit is a responsible person in the unit for public security and order.

The operator of seal engraving individual business is a responsible person of the household for public security.

Security responsible persons shall perform their duties prescribed by laws and regulations.

Article 21(Legal liabilities)

For violation of the provisions of these Procedures, the units, individual businesses and individuals shall be ordered to make corrections within a prescribed time limit by the public security department and be punished in accordance with the following provisions:

1. For violation of Clause 2 or 3 of Article 6, the banning shall be implemented, the illegal income and stamp making materials and tools be confiscated and a fine of not less than 1,000 but not more than 10,000 yuan be imposed; for serious violation, a fine of not less than 10,000 yuan and but not more than 100,000 yuan shall be imposed.

2. For violation of Article 9, an order shall be given to lay off employees within a prescribed time limit and a fine per person of not less than 500 yuan but not more than 2,000 yuan shall be imposed.

3. For violation of Clause 3 of Article 10, or Article 11 or 12, a warning shall be given and a fine of not less than 1,000 yuan but not more than 10,000 yuan shall be imposed; for serious violation, the license may be revoked.

4. For violation of Article 13, a warning shall be given and a fine of not less than 1,000 yuan but not more than 10,000 yuan shall be imposed.

5. For violation of Clause 1 of Article 14, Article 15, or Clause 1 of Article 16, the official seal shall be withdrawn and destroyed, a warning shall be given and a fine of not less than 500 yuan but not more than 1,000 yuan be imposed.

6. For violation of Item 1 of Article 18, a warning shall be given and a fine of not less than 1,000 yuan but not more than 10,000 yuan be imposed; for serious violation, a fine of not less than 10,000 yuan but not more than 100,000 yuan shall be imposed. An order may cumulatively be imposed to suspend business for rectification and the license be revoked.

7. For violation of Item 2,3,4 or 5 of Article 18, a warning shall be given and a fine of not less than 1,000 yuan but not more than 10,000 yuan be imposed ; for serious violation, a fine of not less than 10,000 yuan but not more than 30,000 yuan shall be imposed.

8. For violation of Clause 2 of Article 19, a warning shall be given and a fine of not less than 1,000 yuan but not more than 10,000 yuan be imposed; for serious violation, an order shall be given to suspend business for rectification and the license be revoked.

For those that violate the provisions of these Procedures and deserve administrative penalties, the public security department shall impose a penalty in accordance with the Law of the People's Republic of China on Penalties of Public Security Administration; if the act constitutes a crime, the criminal liability shall be prosecuted.

Article 22(Restrictions after “License” Revoke)

Those that have been revoked the License for violation of these Procedures are not allowed to reapply for seal engraving business within five years.

Article 23 (Announcement Regulation)

The public security department shall make the penalty decision known to the related administrative departments within 7 days from the date of the License revoke decision.

Article 24 (Duties of Law Enforcement Officers)

When conducting security checks in seal engraving industry, the police officers shall hold the ID for people's police and show the “Shanghai Public Security Bureau (order) Inspection certificate”, printed by the Municipal Public Security Bureau, The units, individual businesses and individuals being inspected are not allowed to impede, refuse inspection. Police officers in violation of the above provisions, the inspected units and individual businesses have the right to refuse the inspection.

Article 25 (Penalty Procedures)

When making administrative penalty, the public security department shall issue a written decision on administrative penalty. When collecting fines (goods), a printed receipt for forfeiture, printed by the municipal financial department in a unified way shall be issued.

The forfeits shall be submitted to the state treasury in accordance with the regulations.

Article 26 (Reconsideration and Litigation)

Parties that reject to accept the specific administrative act of public security department shall apply for administrative reconsideration or bring an administrative lawsuit in accordance with the provisions of the Administrative Reconsideration Law of the People’s Republic of China and the Administrative Procedure Law of the People’s Republic of China.

Parties that do not apply for reconsideration or lawsuit within the legal time limit, nor perform specific administrative act, the department that made the specific administrative act shall apply to the people’s court for enforcement, based on the provisions of the Administrative Procedure Law of the People’s Republic of China.

Article 27(Investigation of Illegal Acts of law-executors)

Police officers shall abide by law and enforce law impartially. For dereliction of duty, abuse of power, corruption, extortion, bribery, perverting law enforcers, their units or higher authorities shall give them administrative sanctions; if the act constitutes a crime, criminal liability shall be prosecuted.

Article 28(Interpretation of Relevant Terms)

The official seal in these Procedures refers to the seal engraved with the name of the unit.

Article 29(Interpretation Department)

Municipal Public Security Bureau is obliged to make interpretations on the specific application issues of these Procedures.

Article 30(Effective Date)

These Procedures shall be effective as of October 1, 1998. If the Regulations of Shanghai Municipality on Administration of Printing, Lettering and Casting Industry approved by Shanghai Municipal People’s Government on August 6, 1981 are inconsistent with these Procedures, the latter shall prevail.