(Policy Interpretation) Q&A: Notice on Implementation of Notification Commitment System for Application for Labor Dispatch Business License in the China (Beijing) Pilot Free Trade Zone

english.beijing.gov.cn

I. What does it mean to "implement the notification commitment system for application for Labor Dispatch Business License in the China (Beijing) Pilot Free Trade Zone"?

Where an applicant who has registered an enterprise or obtained the pre-approval notice of enterprise name in the China (Beijing) Pilot Free Trade Zone in accordance with the Company Law of the People's Republic of China (hereinafter referred to as an "applicant") files an application for the Labor Dispatch Business License, the licensing authority shall inform the applicant of the conditions and materials to be submitted, and handle the Labor Dispatch Business License processing upon receipt of the applicant's written commitment of qualifications for the prescribed conditions.

II. What is special about the notification commitment system compared with the traditional approval model?

Like the traditional approval model, the notification commitment system is also handled offline, while these two have differences in three aspects:

1) The procedures are simplified, the process as a whole optimized, and the handling time reduced, so that applicants may obtain licenses shortly after submitting the written commitment and the required materials. The time for the licensing process is significantly shortened from the original statutory 20 days to just half a day. Applicants who complete the formalities may receive the Labor Dispatch Business License on site.

2) It brings licensing authorities and enterprises closer to each other and is conducive to their cooperation and interaction, thus improving the administrative services.

3) It changes the traditional examination and approval model where examination overweighs supervision, and promotes the shift of the focus from ex-ante examination and approval to interim and ex-post supervision.

III. What are the operating processes of the administrative licensing authorities after implementing the notification commitment system for the Labor Dispatch Business License?

1) Notification. The labor dispatch business licensing authority of the district where the pilot free trade zone is located shall create and publish the Beijing Notification Commitment Letter of Labor Dispatch Business License, which shall inform the applicant of all the conditions and materials required to apply for the Labor Dispatch Business License, as well as the disciplinary measures for breach of commitment.

2) Commitment. The applicant shall voluntarily undertake to comply with the conditions of the Labor Dispatch Business License, submit the required materials, and bear the consequences of any resulting breach.

3) Licensing. The applicant shall make a commitment and submit the required materials to the licensing authority in accordance with the commitment agreement. The application materials submitted shall be complete and in the required legal form. The licensing authority shall decide whether or not to issue the Labor Dispatch Business License on site.

4) Supervision. The licensing authority shall, in accordance with the law, organize interimi and ex-post supervision of the commitment fulfillment of the labor dispatching enterprises that have obtained the Labor Dispatch Business License.

IV. What duties shall the licensing authority perform?

1) The licensing authorities shall carry out government administration in accordance with the law and fulfill their commitments to enterprises and the public to provide quality services.

2) Where the applicant has made a commitment and submitted application materials in accordance with the notification commitment system, and the application falls within the administrative licensing scope of the licensing authority, the corresponding licensing authorities shall bear the responsibilities for the consequence resulting from not approving or issuing the relevant approval documents and certificates within the time limit of the commitment.

3) Applicants who do not meet the licensing conditions or have not been licensed shall not carry out business activities concerning the scope of the licensing.

4) The licensing authorities shall perform the duties of supervision, inspection, and guidance in accordance with the requirements of the written notification commitment documents, and shall inspect the commitment fulfillment of the administrative counterparts who have obtained the license within three months after the issuance of the license or the approval documents.

V. What does credit management include?

1) Information on breaches of commitment of the labor dispatching enterprises shall be included in the Beijing Public Credit Information Service Platform.

2) Handling of objections to publicly notified credit information. In the event of any objection, the labor dispatching enterprises can file a written objection to Beijing Municipal Bureau of Economy and Information Technology, or make complaints to the licensing authorities.

3) Credit restoration. Regarding the conditions, channels, methods, deadlines, and procedures for credit restoration on the part of the applicant, the provisions of the Management Measures for Notification Commitment and Approval of Beijing Government Service Matters and relevant rules of Beijing Municipal Bureau of Economy and Information Technology shall apply.

(All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.)

(Source: Beijing Municipal Human Resources and Social Security Bureau)

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