The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may establish a waste discharge charging system according to local economic and social development situation. The charges collected shall not be used for any purposes other than garbage classification, collection, transport, warehouse, utilization and disposal.

The state encourages reclaiming wastes by way of trade-in, deposit, etc.

Article 47 The state shall implement a government procurement policy conductive to developing circular economy. Where any procurement uses fiscal capital, products and reproduced products that may save energy, water and materials and be conductive to environment protection shall be purchased preferentially.

Article 48 The people's governments at or above county level and their relevant departments shall commend and reward entities and individuals that make outstanding contributions to circular economic management, scientific and technological research as well as product development, demonstration and promotion.

Enterprises and public institutions shall commend and reward teams and individuals that make outstanding contributions to circular economy development.

Chapter VI Legal Responsibilities

Article 49 Where any general administration for developing circular economy or other competent department under the people's government at or above county level does not investigate and punish acts in violation of the Law after it finds or is reported such acts, or it does not perform its responsibilities of administration and supervision according to law, the people's government at the same level or the competent department of the people's government at a higher level shall order it to make corrections and punish the person-in-charge and other directly responsible persons.

Article 50 Where any entity or individual produces or sells any product or equipment listed in the catalogue of elimination, it/he shall be punished according to the provisions of the Product Quality Law of the People's Republic of China.

Where any entity or individual uses any technology, process, equipment or material listed in the catalogue of elimination, the general administration for developing circular economy under the people's government at or above county level shall order it/him to stop using, confiscate the illegally-used equipment and material and impose a fine of 50, 000 yuan up to 200, 000 yuan; under any serious circumstance, the general administration for developing circular economy under the people's government at or above county level shall submit a suggestion to the people's government at the same level to order the entity or individual to stop or close its/his business in accordance with the authority provided by the State Council.

Where any entity or individual violates the provisions herein to import any equipment, material or product listed in the catalogue of elimination, the customs shall order it/him to return such articles and impose a fine of 100, 000 yuan up to 1 million yuan. If the importer is unknown, the carrier shall bear the responsibility of returning or relevant disposal expenses.

Article 51 Where any entity or individual violates the provisions herein to use any toxic and harmful substance listed in the catalogue of prohibited use by the state in their electric and electronic products which may pollute environment in their dismantlement or disposal, the product quality supervision department under the people's government at or above county level shall order it/him to make correction within a time limit; if it/he does not make any correction within the time limit, a fine of 20, 000 yuan up to 200, 000 yuan shall be imposed; under any serious circumstance, the product quality supervision department under the people's government at or above county level shall report the situation to the administration for industry and commence at the same level and the latter shall revoke its/his business license.

Article 52 Where any enterprise engaging in power, oil processing, chemical, steel, non-ferrous metals, building materials, etc. violates provisions herein by failing to stop using any oil generating set or oil-fired boiler which does not comply with provisions of the state within the scope and time limit, the general administration for developing circular economy under the people's government at or above county level shall order it/him to make correction; if it/he does not make any correction within the time limit, the said administration shall order it to dismantle the oil generating set or oil-fired boiler and impose a fine of 50, 000 yuan up to 500, 000 yuan.

Article 53 Where any mining enterprise violates the provisions herein by failing to meet the indicators concerning mining recovery rate, dilution rate, recovery of ore dressing, water cycle utilization rate of the mine and land reclamation rate, department of geology and mineral resources under the people's government at or above county level shall order it/him to make correction within a time limit and impose a fine of 50,000 yuan up to 500,000 yuan; if it/he does not make any correction within the time limit, the exploitation license issuing agency shall revoke its/his exploitation license according to law.

Article 54 Where any entity or individual violates the provisions herein to produce, sell or use clay bricks within the time limit or place when or where the production, sale and use of clay brick are prohibited by the State Council or people's governments of provinces, autonomous regions and municipalities directly under the Central Government, the department designated by the people's government at or above county level shall order it/him to make correction and confiscate its/his illegal proceedings if any. If it/he continues to produce or sell clay bricks beyond the time limit, the administration for industry and commerce under the local government shall revoke it/his business license according to law.

Article 55 Where any power grid enterprise violates provisions herein by refusing to purchase the electricity generated by any enterprise by utilizing remaining heat and pressure, coalbed gas and low-calorie fuels including gangue, slime and garbage, the national power regulatory organ shall order it to make correction within a time limit; if there is any loss to the latter enterprise, the power grid enterprise shall bear compensation liabilities according to law.

Article 56 Where any entity or individual has any of the following acts, the administrations for industry and commerce under the people's governments at or above county level shall order it/him to make correction within a time limit and may impose a fine of 5,000 yuan up to 50,000 yuan; if it/he does not make any correction within the time limit, the said administrations shall revoke its/his business license by law; if there is any loss due to such acts, it/he shall bear compensation liabilities:

(1) Selling recycled electric and electronic products without label of "recycled product;" and

(2) Selling reproduced or renovated products without label of "reproduced or renovated product."

Article 57 Where any entity or individual violates provisions herein and constitutes any crime, criminal responsibilities shall be ascertained according to law.

Chapter VII Supplementary Provisions

Article 58 The Law shall enter into force as of January 1, 2009.

(Source: www.fdi.gov.cn)