On 24 June 2024, China’s State Administration for Market Regulation (“SAMR”) issued draft Administrative Rules for Recall of Defective Special Equipment (“Draft Rules”) for public comment until 24 July 2024. The Draft Rules further improve the recall system of defective special equipment proposed in China’s Special Equipment Safety Law, and mainly involves the scope of application, regulatory system, manufacturer’s obligations and recall procedures in terms of recalling of defective special equipment.
According to the Draft Rules, special equipment includes those listed in the Special Equipment Catalog, such as boilers, pressure vessels, pressure pipes, elevators, lifting machinery, passenger ropeways, large amusement facilities, special motor vehicles within the site (factory), and related materials, parts, safety protection devices, instruments and components. The recall system for defective special equipment is an activity in which manufacturers use repairs, replacements, and other measures to eliminate the same defects or reduce safety risks of their special equipment that has been sold and has the same defects endangering safety due to production reasons. The same defects refer to situations in which special equipment of the same batch, model, or category generally does not comply with the safety technical specifications and relevant standards of special equipment due to design, manufacturing, installation, modification, repair, and other reasons during the production process, or other unreasonable dangers that endanger personal and property safety. The manufacturers include design, manufacturing, installation, modification, and repair companies, as well as companies that import special equipment from outside China and sell it domestically.
The SAMR is the competent authority for special equipment recalls nationwide. It uniformly collects and releases recall information through the National Special Equipment Recall Management Information System (“Information System”), organizes defect investigations, issues risk warnings, and orders recalls. It has a Recall Center to carry out the relevant technical works, including the management of defective special equipment recall information, defect information collection and analysis, defect technical investigation, and risk assessment. The provincial Administration for Market Regulation (“PAMR”) is responsible for the recall of special equipment in the region, mainly including collecting and processing special equipment defect information, notifying manufacturers to conduct defect investigations, and supervising the implementation of recalls. The PAMR can entrust relevant technical institutions to perform relevant technical works.
The recall procedure includes processes such as collection and analysis of defect information, defect investigation and identification, recall implementation, recall tracking and evaluation. The collection of defect information is usually carried out by technical institutions entrusted by the SAMR or PAMR. They mainly collect defect information reported from various channels through the Information System, including safety hazard information of special equipment reported by inspection and testing agencies or by safety supervision and inspection departments, information on possible identity defects of special equipment found in accident investigations, and information on recalls of the special equipment produced in China exported abroad, or produced abroad imported into China. The analysis is to summarize, sort out, and evaluate the various defect information collected, and to make a preliminary evaluation of the information that may reflect the existence of the same defects. The Draft Rules emphasize that special attention should be paid to issues that are reported by users, have a high level of social concern, and may cause potential safety accidents. The manufacturers should analyze relevant technical information and the possible same defects. If they are confirmed, the manufacturers should immediately implement recalls.
The PAMR is responsible for defect investigation and identification. The measures that can be taken during the investigation include obtaining information from relevant personnel, on-site inspections, reviewing and copying relevant materials, conducting defect engineering analysis tests, and organizing experts to conduct risk assessments. If the investigation determines that the special equipment has the same defect, the manufacturer should be notified to implement a recall. For a recall notification, the manufacturer can file an opposition or apply for administrative reconsideration. If it does not file oppositions and does not implement recall, the PAMR will report to the SAMR. After confirmation by the SAMR, the SAMR will order it to implement the recall in writing.
When a manufacturer believes that its special equipment has the same defects or is ordered to recall, it shall immediately stop producing, selling, and importing the defective special equipment, and notify the relevant operators and users. After receiving the notification, the relevant operators and users shall immediately stop operating and using the special equipment, and assist the manufacturer in implementing the recall. After that, the manufacturer must submit a recall plan to the PAMR. Subsequently, the SAMR will issue a recall notice to the public, and the manufacturer will also release the recall information and accept consultations. It is required by the Draft Rules that the manufacturers shall implement recalls by their recall plans and prepare and keep recall records for no less than 10 years. Meanwhile, the relevant costs shall be borne by the manufacturers.
After a recall process begins, the manufacturer shall submit a recall interim report every three months from the date of recall implementation. Then, it needs to submit a recall summary report within 15 working days after completing the recall plan. The PAMR supervises the implementation of the manufacturer’s recall and organizes experts to track and evaluate the implementation according to the manufacturer’s recall plan, recall interim report, and recall summary report. For those that do not meet the requirements, the manufacturers shall be required to implement recalls again or take other appropriate remedial measures.
In conclusion, the Draft Rules are safety technical specifications for special equipment. It focuses on supervision during and after the sale of special equipment, forcing the manufacturers to fulfill their main responsibilities and improve the quality of design and manufacturing, thereby strengthening the protection of consumers.
According to the Draft Rules, special equipment includes those listed in the Special Equipment Catalog, such as boilers, pressure vessels, pressure pipes, elevators, lifting machinery, passenger ropeways, large amusement facilities, special motor vehicles within the site (factory), and related materials, parts, safety protection devices, instruments and components. The recall system for defective special equipment is an activity in which manufacturers use repairs, replacements, and other measures to eliminate the same defects or reduce safety risks of their special equipment that has been sold and has the same defects endangering safety due to production reasons. The same defects refer to situations in which special equipment of the same batch, model, or category generally does not comply with the safety technical specifications and relevant standards of special equipment due to design, manufacturing, installation, modification, repair, and other reasons during the production process, or other unreasonable dangers that endanger personal and property safety. The manufacturers include design, manufacturing, installation, modification, and repair companies, as well as companies that import special equipment from outside China and sell it domestically.
The SAMR is the competent authority for special equipment recalls nationwide. It uniformly collects and releases recall information through the National Special Equipment Recall Management Information System (“Information System”), organizes defect investigations, issues risk warnings, and orders recalls. It has a Recall Center to carry out the relevant technical works, including the management of defective special equipment recall information, defect information collection and analysis, defect technical investigation, and risk assessment. The provincial Administration for Market Regulation (“PAMR”) is responsible for the recall of special equipment in the region, mainly including collecting and processing special equipment defect information, notifying manufacturers to conduct defect investigations, and supervising the implementation of recalls. The PAMR can entrust relevant technical institutions to perform relevant technical works.
The recall procedure includes processes such as collection and analysis of defect information, defect investigation and identification, recall implementation, recall tracking and evaluation. The collection of defect information is usually carried out by technical institutions entrusted by the SAMR or PAMR. They mainly collect defect information reported from various channels through the Information System, including safety hazard information of special equipment reported by inspection and testing agencies or by safety supervision and inspection departments, information on possible identity defects of special equipment found in accident investigations, and information on recalls of the special equipment produced in China exported abroad, or produced abroad imported into China. The analysis is to summarize, sort out, and evaluate the various defect information collected, and to make a preliminary evaluation of the information that may reflect the existence of the same defects. The Draft Rules emphasize that special attention should be paid to issues that are reported by users, have a high level of social concern, and may cause potential safety accidents. The manufacturers should analyze relevant technical information and the possible same defects. If they are confirmed, the manufacturers should immediately implement recalls.
The PAMR is responsible for defect investigation and identification. The measures that can be taken during the investigation include obtaining information from relevant personnel, on-site inspections, reviewing and copying relevant materials, conducting defect engineering analysis tests, and organizing experts to conduct risk assessments. If the investigation determines that the special equipment has the same defect, the manufacturer should be notified to implement a recall. For a recall notification, the manufacturer can file an opposition or apply for administrative reconsideration. If it does not file oppositions and does not implement recall, the PAMR will report to the SAMR. After confirmation by the SAMR, the SAMR will order it to implement the recall in writing.
When a manufacturer believes that its special equipment has the same defects or is ordered to recall, it shall immediately stop producing, selling, and importing the defective special equipment, and notify the relevant operators and users. After receiving the notification, the relevant operators and users shall immediately stop operating and using the special equipment, and assist the manufacturer in implementing the recall. After that, the manufacturer must submit a recall plan to the PAMR. Subsequently, the SAMR will issue a recall notice to the public, and the manufacturer will also release the recall information and accept consultations. It is required by the Draft Rules that the manufacturers shall implement recalls by their recall plans and prepare and keep recall records for no less than 10 years. Meanwhile, the relevant costs shall be borne by the manufacturers.
After a recall process begins, the manufacturer shall submit a recall interim report every three months from the date of recall implementation. Then, it needs to submit a recall summary report within 15 working days after completing the recall plan. The PAMR supervises the implementation of the manufacturer’s recall and organizes experts to track and evaluate the implementation according to the manufacturer’s recall plan, recall interim report, and recall summary report. For those that do not meet the requirements, the manufacturers shall be required to implement recalls again or take other appropriate remedial measures.
In conclusion, the Draft Rules are safety technical specifications for special equipment. It focuses on supervision during and after the sale of special equipment, forcing the manufacturers to fulfill their main responsibilities and improve the quality of design and manufacturing, thereby strengthening the protection of consumers.