Provisions of Shanghai Municipality on the Implementation of Non-imposition and Mitigation of Administrative Penalties in Comprehensive Urban Management Administrative Law Enforcement

Chapter I  General Provisions

Article 1

With a view to regulating the implementation of non-imposition and mitigation of administrative penalties in the field of comprehensive urban management law enforcement in this Municipality and protecting the legitimate rights and interests of the parties subject to administrative penalties, these Provisions are formulated in accordance with the Administrative Penalty Law of the People's Republic of China and other relevant laws, regulations, rules, as well as the requirements of higher authorities on the discretionary power of administrative penalties, and in light of the actual work conditions.

Article 2

These Provisions shall apply to the non-imposition and mitigation of administrative penalties imposed by the municipal and district urban management and law enforcement departments, the people's governments of towns and townships, and the sub-district offices (hereinafter collectively referred to as the "comprehensive urban management law enforcement departments"). Where there are other provisions in laws, regulations, rules, or documents specifying discretionary benchmarks issued by their higher authorities, such provisions shall prevail.

Documents on discretionary benchmarks in the field of comprehensive urban management law enforcement, including benchmarks for discretionary administrative penalties, lists of non-imposable administrative penalties, and lists of mitigable administrative penalties (hereinafter collectively referred to as the "comprehensive urban management law enforcement discretionary documents"), shall be implemented in conjunction with these Provisions.

Article 3

Non-imposition of administrative penalty refers to the lawful decision not to impose administrative penalties on illegal acts that meet the statutory conditions for exemption from such penalties.

Mitigation of administrative penalty refers to imposing administrative penalties below the minimum limit of the statutory penalty types or penalty ranges for illegal acts that meet the legal criteria for mitigation. This includes determining a fine amount below the statutory minimum fine limit, or not imposing a concurrent penalty when such a concurrent penalty is otherwise required by law, etc.

Article 4

When imposing non-imposition or mitigation of administrative penalties, the comprehensive urban management law enforcement departments shall base their decisions on facts, comply with statutory procedures, and adhere to the principle of proportionality between the offense and punishment. They shall comprehensively consider the factors such as the facts, nature, circumstances, and social harm of the illegal act, as well as the subjective and objective circumstances of the parties concerned in accordance with the provisions of laws, regulations, and rules.

Article 5

The municipal urban management and law enforcement department shall be responsible for formulating and dynamically adjusting the lists of non-imposable administrative penalties and lists of mitigable administrative penalties for the entire system in light of industry characteristics, regulatory status, and law enforcement practices, and shall guide and supervise comprehensive urban management law enforcement departments at all levels in the specific implementation of non-imposition and mitigation of administrative penalties.

The municipal and district urban management and law enforcement departments may supervise and inspect instances of non-imposition and mitigation of administrative penalties within their respective systems through case file reviews, special random checks, and law enforcement evaluations.

Article 6

For illegal acts not included in the lists of non-imposable administrative penalties or the lists of mitigable administrative penalties, if they meet the statutory conditions for non-imposition or mitigation of administrative penalties, the comprehensive urban management law enforcement departments shall refrain from imposing administrative penalties or mitigate them accordingly.

Chapter II  Applicable Circumstances

Article 7

No administrative penalty shall be imposed in any of the following circumstances:

1. The illegal act is committed by a minor under the age of fourteen;

2. The illegal act is committed by a mentally ill person or a person with intellectual disabilities who committed the illegal act while unable to recognize or control their own behavior;

3. The illegal act is minor, promptly corrected, without causing any harmful consequences; or

4. Except as otherwise provided by laws and administrative regulations, the party concerned has sufficient evidence to prove that they have no subjective fault.

Where a party commits an illegal act for the first time, the harmful consequences are minor, and the act is promptly corrected, an administrative penalty may be exempted. A party's first commission of such an illegal act shall be deemed a first-time violation.

The administrative penalty shall not be imposed for an illegal act that has not been discovered within two years; where such act involves the safety of a citizen's life or health, or financial security, and has harmful consequences, the aforesaid time period shall be extended to five years, except as otherwise prescribed by law.

Article 8

A party shall be given a lighter or mitigated administrative penalty in one of the following circumstances:

1. voluntarily eliminating or reducing the harmful consequences of the illegal act;

2. committing the illegal act under coercion or inducement by others;

3. voluntarily confessing illegal acts that the comprehensive urban management law enforcement department has not yet discovered;

4. rendering meritorious service in cooperating with the comprehensive urban management law enforcement department in investigating and handling the illegal act; and

5. other circumstances in which a lighter or mitigated administrative penalty shall be given in accordance with laws, regulations or rules.

Where minors who have reached the age of fourteen but not the age of eighteen commit illegal acts, a lighter or mitigated administrative penalty shall be imposed on them.

For mentally ill persons or intellectually disabled persons who have not completely lost the ability to recognize or control their own behavior and commit illegal acts, a lighter or mitigated administrative penalty may be imposed on them.

Article 9

For illegal acts that are proven to seriously endanger citizens' health and safety, cause significant property damage, or result in other serious harmful consequences, administrative penalties shall not be waived or mitigated.

Chapter III  Determination of Discretionary Factors

Article 10

"An illegal act is minor" shall be determined based on a comprehensive assessment of the following factors:

1. The subjective fault is relatively minor;

2. The act constitutes a first-time violation;

3. Continuous or ongoing illegal acts have a relatively short duration;

4. There are no illegal gains, or the amount of illegal gains is relatively small;

5. The quantity, weight or scale of the involved items is relatively small;

6. The illegal act exceeds or falls below the statutory limits or ranges by a relatively small margin;

7. Effective remedial measures have been taken before the case is filed by the comprehensive urban management law enforcement department;

8. The illegal act is promptly discontinued; and

9. Other factors that may be considered in determining the minor nature of the illegal act.

Article 11

The determination that "the harmful consequences are minor" shall be made comprehensively by taking into account the following factors:

1. The degree of impact on economic and social order is minor;

2. The scope of harm is relatively limited;

3. The harmful consequences have been eliminated, or the harmful consequences have been significantly reduced with only minor residual consequences remaining;

4. The party concerned has voluntarily reached a settlement with the victim of the illegal act; and

5. Other factors that can be used to determine that the harmful consequences are minor.

Article 12

Prior to the conclusion of case investigation, if the party concerned voluntarily takes such measures as returning and compensating for illegal gains, making compensation for losses, and eliminating adverse impacts, and these measures effectively eliminate or reduce the harmful consequences, this constitutes voluntary elimination or reduction of the harmful consequences of the illegal act.

Article 13

Any of the following circumstances shall be deemed as absence of subjective fault:

1. The illegal act occurred due to an objective situation that was unforeseeable, unavoidable and insurmountable;

2. The illegal act was committed in justifiable defense or due to necessity, and no inappropriate measures exceeding the necessary limits were taken;

3. The relevant act was taken based on an explicit and specific commitment from a competent administrative authority, and the act was subsequently deemed to be illegal because the commitment was not fulfilled, and the acts that could be stopped were promptly ceased; and

4. The party conducted the act permitted by an administrative license within the valid period of such license before the administrative license was changed or revoked, as stipulated in Paragraph 2 of Article 8 of the Administrative Licensing Law of the People's Republic of China.

Parties claiming a lack of subjective fault shall provide relevant evidence. The comprehensive urban management law enforcement department shall verify such evidence and determine whether the party is indeed without subjective fault.

Article 14

If a party voluntarily rectifies its illegal behavior, or corrects it as required after being ordered to do so by the comprehensive urban management law enforcement department, such rectification shall be considered timely rectification.

Methods of rectification shall include restoring the original state, ceasing and correcting the illegal behavior, or taking effective measures to ensure that such illegal behavior does not recur. The comprehensive urban management law enforcement department shall prioritize ordering the party to restore the original state.

Chapter IV  Implementation Procedures

Article 15

When law enforcement officers investigate and handle illegal acts, they shall conduct thorough investigation and gather evidence to determine whether the circumstances for non-imposition or mitigation of administrative penalties exist.

Article 16

For illegal acts that meet the criteria for exemption of administrative penalties, if the comprehensive urban management law enforcement department has ascertained the facts of the violation during the pre-investigation stage prior to case filing, it may decide not to file a case. However, it shall record the relevant circumstances in the files and inform the party concerned of the facts, reasons and legal basis for the illegality through means such as a Notice to Order Correction or an inspection record.

Article 17

Where circumstances warranting non-imposition or mitigation of administrative penalties are identified upon investigation after case filing, law enforcement officers shall make such a determination in the Case Investigation Conclusion Approval Form and put forward recommendations and reasons for non-imposition or mitigation of administrative penalties.

Article 18

Where a case falls under any of the following circumstances, a major legal review shall be conducted before the chief of the comprehensive urban management law enforcement department makes a decision:

1. An administrative penalty is to be mitigated; or

2. Not imposing administrative penalties in situations other than those specified in the comprehensive urban management law enforcement discretion document.

In cases where a mitigated penalty is to be applied, collective discussion and decision by the chief of the comprehensive urban management law enforcement department shall be required under any of the following circumstances:

1. The types of penalties other than warnings and circularized criticism are to be mitigated; or

2. The amount of the fine to be mitigated is more than 5,000 yuan for an individual, or more than 30,000 yuan for an entity.

Article 19

When implementing decisions not to impose administrative penalties or to mitigate administrative penalties, the comprehensive urban management law enforcement department shall, in legal documents such as the prior notice of administrative penalty, the decision on non-imposition of administrative penalty, and the decision on administrative penalty, specify the application of relevant comprehensive urban management law enforcement discretionary documents.

Article 20

When comprehensive urban management law enforcement departments decide not to impose administrative penalties or to mitigate administrative penalties, they shall safeguard the rights of the parties concerned, including the right to make statements, present arguments, and the right to a hearing, and shall strengthen the education and guidance for the parties concerned.

Forms of the education and guidance may be provided through methods such as criticism, interviews with relevant responsible persons or personnel, issuing notification letters, and similar forms. These measures shall fully inform the parties of the illegal facts committed, the grounds and legal basis for determining the violation, the obligations to be fulfilled, and other relevant information. Additionally, guidance shall be provided to assist them in rectifying the violations, and supervision shall be exercised to ensure that their activities are conducted in accordance with laws and regulations.

Chapter V  Supplementary Provisions

Article 21

If the application of discretionary documents such as as the list of non-imposable administrative penalties and the list of mitigable administrative penalties by the comprehensive urban management law enforcement in individual cases may lead to obvious impropriety or manifest unfairness, adjustments may be made upon approval by Shanghai Urban Management and Law Enforcement Bureau.

Article 22

These Provisions shall be interpreted by Shanghai Urban Management and Law Enforcement Bureau.

Article 23

These Provisions shall be effective as of July 10, 2025 and shall be valid for five years.