· Document Number：Order No.598 of the State Council and the Central Military Commission

· Area of Law： Military

· Level of Authority： Military Regulations

· Date issued：06-24-2011

· Effective Date：10-01-2011

· Status： Effective

· Issuing Authority： State Council Central Military Commission

Order of the State Council and the Central Military Commission
(No.598)
The Regulation on the Management of Critical Military Equipment and Facilities is hereby promulgated, and shall come into force on October 1, 2011.
Premier of the State Council: Wen Jiabao
Chairman of the Central Military Commission: Hu Jintao
June 24, 2011
Regulation on the Management of Critical Military Equipment and Facilities
Article 1 This Regulation is formulated to maintain and improve the capability of scientific research and production for national defense, strengthen the management of critical military equipment and facilities and guarantee the safety, integrity and efficient use thereof.
Article 2 For the purpose of this Regulation, the term “critical military equipment and facilities” refers to the important experimental facilities, manufacturing equipment, testing equipment and other special-purpose military equipment and facilities directly used for the scientific research and production of weapons and equipment.
The catalogue of critical military equipment and facilities shall be formulated by the administrative department of science, technology and industry for national defense, the weapon and equipment department, the state-owned assets supervision and administration department and other relevant departments of the State Council.
Article 3 The state applies the registration system to critical military equipment and facilities, and applies the examination and approval system to critical military equipment and facilities purchased or built with national financial funds for the scientific research and production of weapon and equipment outfits, critical sub-systems or core matching products.
Article 4 The administrative department of science, technology and industry for national defense of the State Council shall, together with other relevant departments of the State Council, manage critical military equipment and facilities of the whole nation in accordance with this Regulation.
The administrative departments of science, technology and industry for national defenses under the people's government of the provinces, autonomous regions or municipalities directly under the Central Government shall, together with the relevant departments at the same level, manage critical military equipment and facilities in accordance with this Regulation.
Article 5 The administration of critical military equipment and facilities shall follow the principles of strict liability, division of work with individual responsibility, convenience and efficiency.
Article 6 Enterprises and public institutions that occupy or use critical military equipment and facilities (hereinafter referred to as “enterprises and public institutions”), departments or entities in charge of the administration of critical military equipment and facilities and the staff members thereof shall be obliged to keep confidential the national secrets and trade secrets they have access to.
Article 7 Enterprises governed by the central government shall be responsible for the registration of the critical military equipment and facilities of entities subordinated to them. The education department of the State Council shall be responsible for the registration of the critical military equipment and facilities of institutions of higher learning subordinate to them. The Chinese Academy of Sciences shall be responsible for the registration of the critical military equipment and facilities of scientific research institutions subordinate to them.
The administrative department of science, technology and industry for national defense of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the registration of the critical military equipment and facilities of enterprises and public institutions other than those mentioned in the preceding paragraph within their respective administrative regions.
Article 8 An enterprise or public institution shall, within 30 days after putting critical military equipment and facilities into use, submit documents bearing the following contents to the registration department or entity to handle the registration formalities:
1. Basic information such as name and domicile of the enterprise or public institution; and
2. Basic information such as name, place of origin, value, performance, status, source of funds and ownership of critical military equipment and facilities.
Enterprise and public institutions shall be responsible for the authenticity of documents submitted by them.
Article 9 A registration department or entity shall handle the registration formalities within 30 days after receiving the documents submitted by an enterprise or public institution and allocate a unique code for the critical military equipment and facilities concerned.
Article 10 The specific contents and exclusive code of registration of critical military equipment and facilities shall be determined and allocated by the administrative department of science, technology and industry for national defense of the State Council.
Article 11 In the case of damage, obsolescence or loss of any critical military equipment and facilities occupied or used by an enterprise or a public institution, or change of ownership thereof, the enterprise or public institution shall report it to the registration department or entity within 30 days. The registration department or entity shall modify the registration information without delay.
Article 12 The registration department or entity shall file the registration information with the administrative department of science, technology and industry for national defense of the State Council according to the relevant provisions of the latter.
The administrative department of science, technology and industry for national defense of the State Council and the registration department or entity may review the registration information, if necessary.
Article 13 Enterprises and public institutions shall set up and improve the management rules for the use of critical military equipment and facilities so as to guarantee the safety, integrity and efficient use thereof, and keep complete records of the name, specifications, performance, status, quantity, ownership and other basic information of the critical military equipment and facilities occupied or used by them.
Article 14 Enterprises and public institutions shall, according to the provisions of the administrative department of science, technology and industry for national defense of the State Council, delimit a safety zone around critical facilities under special control and set up warning signs at the borders thereof.
Article 15 Where any enterprise or public institution intends to change the use of any critical military equipment and facilities occupied or used by it, it shall submit the relevant documents to the registration department or entity and handle the supplementary registration formalities. The registration department or entity shall file the supplementary registration information with the administrative department of science, technology and industry for national defense of the State Council according to the relevant provisions of the latter.
If the change would affect the accomplishment of the scientific research or production tasks of weapon and equipment, the administrative department of science, technology and industry for national defense of the State Council shall correct it without delay.
Article 16 Where any enterprise or public institution intends to dispose, by means of transfer or lease, of any critical equipment and facilities of the military industry purchased or built with national financial funds for the scientific research and production of a weapon and equipment outfit, a critical sub-system or a core matching product, it shall obtain the approval of the administrative department of science, technology and industry for national defense of the State Council. The following materials shall be submitted in order to apply for approval:
1. Name, quantity, value, performance and use of the critical equipment and facilities;
2. An explanation that it will not affect the scientific research or production tasks of weapon and equipment;
3. Cause and way of disposal; and
4. Basic information about the transferee or lessee.
Article 17 The administrative department of science, technology and industry for national defense of the State Council shall, within 30 days after receiving a disposal application, make a decision of approval or disapproval. In the case of approval, it shall issue an approval document to the applicant; in the case of disapproval, it shall notify the applicant and give reasons in writing.
To make a decision of approval or disapproval, the administrative department of science, technology and industry for national defense of the State Council shall solicit the opinions of the weapon and equipment department of the army, the state-owned assets supervision and administration department of the State Council and other relevant departments of the State Council. If it involves any change in the scientific research and production capacity, structure or layout for national defense, it shall make a decision of approval or disapproval together with the weapon and equipment department of the army, the state-owned assets supervision and administration department of the State Council and other relevant departments of the State Council pursuant to the relevant state provisions.
After obtaining an approval document, an enterprise or public institution shall report to the registration department or entity under Article 11 of this Regulation without delay.
Article 18 Where a state-owned assets supervision and administration body or any other relevant department decides on the merger, split, restructuring, dissolution, bankruptcy or any other material matter of an enterprise or public institution, if it involves any change of ownership of critical military equipment and facilities purchased or built with national financial funds for the scientific research and production of a weapon and equipment outfit, a critical sub-system or a core matching product, it shall solicit the opinion of the competent administrative department of science, technology and industry for national defense.
Article 19 Where any enterprise or public institution fails to handle the registration of critical military equipment and facilities pursuant to this Regulation or fails to report any damage, obsolescence or loss of critical equipment and facilities occupied or used by it or any change in the ownership thereof to the registration department or entity, the competent authority shall order it to correct within a certain time limit and, if it fails to do so, impose a fine of 10,000 yuan up to 20,000 yuan.
Article 20 Where any enterprise or public institution handles the registration formalities with false documents, the competent authority shall order it to correct and impose a fine of 10,000 yuan up to 20,000 yuan.
Article 21 Where any enterprise or public institution, in violation of this Regulation, disposes of critical military equipment and facilities purchased or built with national financial funds for the scientific research and production of a weapon and equipment outfit, a critical sub-system or a core matching product, the competent authority shall order it to correct within a certain time limit, impose a fine of 500,000 yuan up to 1 million yuan on the violating entity, impose a fine of 5,000 yuan up to 20,000 yuan upon the directly liable person in charge and other directly liable persons, and confiscate the illegal gains, if any.
Article 22 Where any enterprise or public institution obtains an approval document on disposal of critical military equipment and facilities by deception, bribery or other illegitimate means, a fine of 50,000 yuan up to 200,000 yuan shall be imposed, and the illegally obtained approval document shall be withdrawn.
Article 23 The administrative penalty as mentioned in this Regulation shall be imposed at the discretion of the administrative department of science, technology and industry for national defense of the State Council. However, an administrative penalty on an enterprises or public institution defined in Paragraph 2, Article 7 of this Regulation which commits an illegal act mentioned in Article 19 of this Regulation shall be decided by the administrative department of science, technology and industry for national defense of the people's government of the province, autonomous region or municipality directly under the Central Government.
Article 24 Where any functionary of the departments or entities in charge of the registration administration or the examination and approval of the disposal of critical military equipment and facilities abuses his power, neglects his duties or engages in malpractice for personal gains, a sanction shall be given by law; if any crime is constituted, he/she shall be subject to criminal responsibility.
Article 25 This Regulation shall come into force on October 1, 2011.