Article 12 If an operating entity alters, expands or removes its operation or storage place, or expands the approved business scope, it shall apply for a new operating license in advance.

If an operating entity alters its name, economic type or the legal representative or principal registered, it shall apply for going through alteration formalities and for replacing the operating license with the original license-issuing body within 20 workdays from the day of alteration.

Article 13 The valid term of an operating license is 3 years. If an operating entity continues the operation of hazardous chemicals after the expiration, it shall apply for replacing the license with the original license-issuing body within 3 months before the expiration of the valid term of the operating license, and draw the new license after passing the examination.

Article 14 A license-issuing body shall notify the departments of public security and environment protection at the corresponding level about the issuance of operating licenses in good time.

Article 15 An operating entity may not transfer, trade, lease, lend, forge or alter the operating license.

Chapter III Supervision and Administration of Operating Licenses

Article 16 A license-issuing body shall stick to the principles of openness, fairness and justice, and, in the examination and approval and issuance of operating licenses, strictly follow the conditions and procedures provided for in the laws, regulations, rules and standards.

Article 17 A license-issuing body shall strengthen the supervision and administration of operating licenses, and establish and perfect the systems of examination and approval, and issuance archive management of operating licenses.

Article 18 A license-issuing body at the city level shall report the examination and approval as well as the licenses issued each year to the license-issuing body at the provincial level for record, and issuance of operating licenses within its administrative area of the year. The license-issuing bodies at the provincial level shall report the examination and approval as well as the licenses issued within its administrative area of the year to the State Bureau of Safe Production Supervision and Administration for record.

Article 19 A license-issuing body shall supervise and inspect the entities that have obtained the operating licenses within its administrative area. An operating entity shall accept the supervision and inspection carried out by the license-issuing body pursuant to law, and may not refuse or frustrate without due causes.

Chapter IV Penalty Provisions

Article 20 Those engaging in the operation of hazardous chemicals without the operating license shall be punished by the license-issuing bodies at the provincial level or city level pursuant to Article 57 of the Regulations on the Safety Administration of Hazardous Chemicals.

Article 21 If an operating entity conducts any of the following acts in violation of the present Measures, the license-issuing body shall revoke its operating license:

1) Obtaining the operating license by providing false certifications or other deceitful means;

2) No longer meeting the basic conditions for operating and marketing hazardous chemicals;

3) Transferring, trading, leasing, lending, forging or altering the operating license.

Article 22 If the functionary of the license-issuing bodies seek private benefit through wrongful means, abuse their powers, commits frauds, or neglect their duties, they shall be given administrative sanctions of demotion or removal pursuant to Article 55 of the Regulations on the Safety Administration of Hazardous Chemicals; if a crime is constituted, the offender shall be subject to criminal liabilities.

Article 23 If an agency undertaking the safety evaluation produces false evaluation reports, the department of safe production supervision and administration at or above the provincial level shall confiscate the illegal gains and impose on that agency a fine of no more than 30,000 Yuan; if there is no illegal gains, a fine of no more than 20,000 Yuan shall be imposed; and the department that granted qualification to that agency shall be suggested to revoke the qualification certificate; if a crime is constituted, the offender shall be subject to criminal liabilities.

Chapter V Supplementary Rules

Article 24 If a production entity of hazardous chemicals markets the hazardous chemicals produced thereby, it need not apply for the operating license any more, however, if it markets hazardous chemicals not produced by it or sets up marketing spots outside the factory, it shall still apply for the operating license.

Article 25 The entities that have obtained the operating license before the present Measures take effect shall apply for a new operating license within 6 months from the day on which the present Measures take effect. Those failing to do so may not continue the operation and marketing of hazardous chemicals any more.

Article 26 The operating licenses shall be uniformly printed by the State Bureau of Safe Production Supervision and Administration.

Article 27 The power to interpret the present Measures shall be authorized to the State Bureau of Safe Production Supervision and Administration.

Article 28 The present Measures shall enter into force on November 15, 2002.