Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on the Issuance of the List of Dishonest Persons Subject to Execution

Fa Shi [2017] No. 7

February 28, 2017

The Decision of the Supreme People's Court on Revising the Several Provisions of the Supreme People's Court on Issuance of the List of Dishonest Persons Subject to Execution (the "Decision"), which has been adopted on January 6, 2017 by the 1707th meeting of the Judicial Committee of the Supreme People's Court, is hereby promulgated for implementation as of May 1, 2017.

The Several Provisions of the Supreme People's Court on Issuance of the List of Dishonest Persons Subject to Execution are revised as follows pursuant to the Decision made at the 1707th meeting of the Adjudicative Committee of the Supreme People's Court:

I. Article 1 is revised to read as follows: "Where persons subject to execution fail to discharge the obligations imposed by effective legal instruments, and commit any of the following violations, the people's courts shall include them in the list of dishonest persons subject to execution, and impose credit penalties on them according to the law:
1. they are able to fulfill the obligations imposed by effective legal instruments but refuse to do so;
2. they obstruct or reject execution by fabricating evidence, perpetrating violence or making intimidation, etc.;
3. they dodge execution by false litigation, bogus arbitration or hiding and transferring property, etc.;
4. they violate the property reporting system;
5. they violate the consumption restriction order; or
6. they refuse to fulfill or implement the settlement agreement without justified reasons."

II. One article is added as Article 2, which reads: "Where persons subject to execution fall within any of the circumstances set forth in Item 2 to Item 6 of Article 1, they shall be included in the list of dishonest persons subject to execution for a period of two years, and such period may be extended for another one to three years if they obstruct or reject execution by resorting to violence and intimidation and cause serious consequences or commit several acts of dishonesty.
The people's courts may make a decision on deleting their dishonesty information in advance if the dishonest persons subject to execution actively discharge the obligations imposed by effective legal instruments or voluntarily correct the act of dishonesty."

III. One article is added as Article 3, which reads: "Where any of the following circumstances applies, the people's courts shall not, in accordance with the provisions of Item 1 of Article 1 hereof, include the persons subject to execution in the list of dishonest persons subject to execution:
1. the persons subject to execution provide full and effective guarantees;
2. the property subject to sealing up, seizure and freezing, etc. is sufficient to clear the debts determined by effective legal instruments;
3. the fulfillment of obligations by the persons subject to execution are seen as low priority and are not subject to compulsory execution according to the law; or
4. the other circumstances which do not fall within the scenario in which they are able to discharge the obligations imposed by effective legal instruments but refuse to do so."

IV. One article is added as Article 4, which reads: "The people's court shall not include the persons subject to execution in the list of dishonest persons subject to execution provided that they are minors."

V. Article 2 is changed to be Article 5 and revised as: "an execution notice issued by the people's court to the persons subject to execution shall explicitly indicate the risk warning relating to the inclusion in the list of dishonest persons subject to execution, etc.
Where an applicant for execution deems that the persons subject to execution have committed any acts specified in Article 1 hereof, it may file an application to the people's court to include them in the list of dishonest persons subject to execution, and the people's court shall review the application and arrive at a decision within 15 days of the receipt of the application. Where the people's court holds that the persons subject to execution have perpetrated any dishonest act specified in Article 1 hereof, it shall make a decision ex officio on including them in the list of dishonest persons subject to execution.
Where the people's court has decided to include the persons subject to execution in the list of dishonest persons subject to execution, it shall make a written decision indicating the reasons for doing so and the time limit (if any). The written decision shall be signed by the president of the people's court and take effect from the date of issuance. The written decision shall be served to relevant parties by way of delivering legal instruments in accordance with the Civil Procedure Law of the People's Republic of China."

VI. Article 3 shall be changed to be Article 11 and revised as: "Any citizens, legal persons or other organizations that are included in the list of dishonest persons subject to execution may file a request for redress with the execution court if they deem that any of the following circumstances applies:
1. they shall not be included in the list of dishonest persons subject to execution;
2. the information on dishonesty recorded and published is inaccurate; or
3. the dishonest information shall be deleted."

VII. Article 4 shall be changed to be Article 6, and Item 1 thereof is revised to read as follows: "The names and unified social credit codes (or organization codes) of the legal persons or other organizations as the persons subject to execution, and the names of their legal representatives and leaders;"

VIII. Article 6 shall be changed to be Article 8, and Paragraph 3 thereof is revised to read as follows: "Where the state functionaries, the NPC deputies, CPPCC members, etc. are included in the list of dishonest persons subject to execution, the people's courts shall inform their working units and relevant departments of their dishonest acts."
Paragraph 4 thereof is revised to read as follows: "Where state organs, public institutions, state-owned enterprises, etc. are included in the list of dishonest persons subject to execution, the people's courts shall inform their superior units, the competent authorities or the agencies that serve as investors of their dishonest acts."

IX. One article shall be added as Article 9, which reads: "Where any citizen, legal person or other organization shall not be included in the list of dishonest persons subject to execution, the people's courts shall cancel the dishonest information within three working days.
Where the dishonest information recorded and published is inaccurate, the people's courts shall correct the same within three working days."

X. Article 7 shall be changed to be Article 10 and revised as: "If any of the following circumstances applies, the people's courts shall delete the dishonest information within three working days:
1. the persons subject to execution have already discharged the obligations imposed by effective legal instruments or the people's courts have carried out execution;
2. the parties concerned have entered into a settlement agreement and have fulfilled the relevant obligations;
3. the applicants for execution apply in writing for deleting the dishonest information and the people's courts approve such application upon due review;
4. upon the termination of the current execution, no property is found to be subject to execution upon being checked the property of the persons subject to execution through the network execution check and control system at least twice, and the applicants for execution or other persons concerned fail to furnish any useful property clues;
5. the people's courts, according to the law, adjudicate that the dishonest persons subject to execution shall be terminated execution due to adjudication supervision or bankruptcy procedures;
6. the people's courts, according to the law, adjudicate non-execution; or
7. the people's courts, according to the law, adjudicate termination of execution.
The provisions of the preceding paragraph shall not apply if there is a time limit of being included the list of dishonest persons subject to execution. Within three working days upon the expiration of such time limit, the people's courts shall delete the dishonest information.
After deleting the dishonest information in accordance with the provisions of Paragraph 1 of this Article, the people's courts may re-include the persons subject to execution in the list of dishonest persons subject to execution if any of the circumstances of Article 1 hereof applies.
The people's courts shall not uphold the applications filed by applicants for execution for including the persons subject to execution in the list of dishonest persons subject to execution within six months upon the dishonest information is deleted in accordance with the provisions of Item 3 of Paragraph 1 of this Article."

XI. One article shall be added as Article 12, which reads: "Where any citizens, legal persons or other organizations file a request for redress of being included in the list of dishonest persons subject to execution, the execution courts shall, within 15 days from the date of receiving the written request for redress, review the same and shall redress the wrongdoing within three working days if the reasons are justified; otherwise, they shall reject such request; where any citizens, legal persons or other organizations challenge the rejection decisions, they may apply to the people's court at a higher level for reconsideration within 10 days from the date of serving the letter of decision. The people's court at a higher level shall, within 15 days upon receipt of the same, arrive at a decision.
During the reconsideration period, the execution of the original decision shall not be suspended."

XII. One article is added as Article 13, which reads: "The functionaries of the people's courts shall be held accountable by reference to the relevant provisions if they release, cancel, correct, or delete the dishonest information in violation of these Provisions."

In accordance with this Decision, the Several Provisions of the Supreme People's Court on the Issuance of the List of Dishonest Persons Subject to Execution shall be revised correspondingly and re-promulgated.