Chapter VI

Seed-Related Supervision and Administration

Article 46 The competent departments of agriculture and rural affairs and the competent departments of forestry and grassland shall strengthen supervision and inspection of seed quality. The measures for the administration of seed quality, the seed industry standards, and the methods for seed inspection shall be formulated by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the State Council.

The competent departments of agriculture and rural affairs or the competent departments of forestry and grassland may adopt rapid testing methods prescribed by the state to test the seed varieties under production or business operation, and the test results may be the basis for administrative penalties. Whoever inspected has any objection to the test results may apply for a retest which shall not adopt the same test method. Where losses are caused to a party due to erroneous test results, the liability for compensation shall be borne in accordance with law.

Article 47   The competent departments of agriculture and rural affairs or the competent departments of forestry and grassland may entrust seed quality inspection institutions with the inspection work.

The institutions for seed quality inspection shall have the corresponding test conditions and capabilities, and pass the qualification evaluation by the relevant competent departments under the people’s governments at or above the provincial level. 

Seed quality inspection institutions shall have inspectors. Seed inspectors shall have diplomas from specialized secondary schools or above in the relevant majors and possess the capability for seed inspection.

Article 48     Production or business operation of fake or inferior seeds is prohibited. The competent departments for agriculture and rural affairs, the competent departments for forestry and grassland and other relevant departments shall crack down on the illegal acts of production and business operation of fake and inferior seeds in accordance with law to protect the lawful rights and interests of farmers and maintain a market order of fair competition.

The following are fake seeds:

(1)   the non-seed material passed off as seeds, or the seeds of one variety passed off as the seeds of another variety; and

(2)   the seeds whose species or variety is not in agreement with the contents indicated on the label, or the seeds with no label attached.

The following are inferior seeds:

(1)   the seeds whose quality is below the standards prescribed by the state;

(2)   the seeds whose quality is below the indices indicated on the label; and

(3)   the seeds carrying quarantine pests prescribed by the state.

Article 49  The competent departments of agriculture and rural affairs and the competent departments of forestry and grassland are the seed-related law enforcement organs. When performing official duties in accordance with law, seed law enforcement officers shall produce their law enforcement certificates. When performing the duty of seed-related supervision and inspection in accordance with law, the competent departments of agriculture and rural affairs and the competent departments of forestry and grassland shall have the right to take the following measures:

(1)    conducting the onsite inspection of production and operation premises;

(2)    conducting seed sample test, trial, or inspection;

(3)    checking and duplicating the relevant contracts, bills, account books, production and business operation files, and other relevant materials;

(4)    sealing up and seizing the seeds involved in illegal production or business operation as proved by evidence, as well as the tools, equipment and means of transport used for the illegal production or business operation; and

(5)    sealing up the premises used for illegal seed production or operation.

 Where the competent departments of agriculture and rural affairs or the competent departments of forestry and grassland perform their functions in accordance with this Law, the party concerned shall assist and cooperate with them and shall not refuse or obstruct the performance of such functions.

The comprehensive law enforcement agencies subordinate to the competent departments of agriculture and rural affairs or the competent departments of forestry and grassland, or the seed administrative agencies entrusted by such departments may perform the seed-related law enforcement work.

Article 50  Seed producers and operators may, in accordance with law, voluntarily establish the seed industry association to strengthen the industry self-regulation, safeguard the lawful rights and interests of the members, and provide information exchange, technical training, credit building, marketing, consultation and other services for members and industry development.

Article 51  Seed producers and operators may voluntarily apply to qualified certification institutions for seed quality certification. Where the seeds have been certified, a certification mark may be used on their packages.

Article 52  Where, due to force majeure, in light of the need for production, the crop seeds below the national or local standards must be used, such use shall be subject to approval by the local people’s government at or above the county level where the seeds are to be used.

Article 53  The entities or individuals engaged in selective breeding of varieties, production or business operation of seeds, or seed-related administration shall observe the provisions of the laws and administrative regulations on plant quarantine to prevent diseases, insect pests, weeds, and other pests that are hazardous to plants from transmitting and spreading.

Any entity or individual is prohibited from conducting quarantine pest inoculation trials at seed production bases.

Article 54   The competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the provincial level shall disclose, via unified government information platforms, the information on variety review and decision, variety registration, new plant variety protection, seed production and operation licensing, seed-related supervision and administration, and other information.

The competent department of agriculture and rural affairs or the competent department of forestry and grassland under the State Council establishes standard sample banks for plant varieties to provide the basis for seed-related supervision and administration.

Article 55   The competent departments of agriculture and rural affairs and the competent departments of forestry and grassland and their staff members shall not participate in or engage in seed production or business operation activities.

Chapter VII

Import and Export of Seeds and International Cooperation

Article 56 Any seed imported or exported must be subject to quarantine to prevent diseases, insect pests, weeds or other pests that are hazardous to plants from spreading into or out of China, and the specific quarantine work shall be carried out in accordance with the provisions of the laws and administrative regulations on the entry and exit plant quarantine.

Article 57 Any person who engages in the import or export of seeds shall obtain the seed production and operation license; those who engage in the import or export of crop seeds shall also obtain the license for the import and export of seeds in accordance with the relevant regulations of the state.

The scope of authority for the review and decision of the introduction of crop and forest tree seeds from abroad, the measures for the review and approval of the import of crop seeds, and the measures for the administration of the introduction of genetically modified plant varieties shall be formulated by the State Council.

Article 58  The quality of the imported seeds shall reach state or industry standards. Where there are no such standards, the standards agreed on in a contract may be applied.

Article 59  Where seeds are imported to produce seeds for foreign countries, such imports may be exempt from the restrictions provided in the first paragraph of Article 57 of this Law, provided that a contract shall be signed for the production of seeds for foreign countries, the imported seeds are only to be used for seed production, and the products shall not be sold in China.

The crop or forest tree seeds introduced from abroad for trial shall be cultivated in isolation, and no harvest therefrom shall be sold as seeds.

Article 60  Fake or inferior seeds or the seeds that shall not be imported or exported by the regulations of the state are prohibited from import or export.

Article 61  The state establishes a national security review mechanism for the seed industry. Where foreign institutions or individuals invest in or make mergers and acquisitions of domestic seed enterprises or carry out technical cooperation with domestic scientific research institutes or seed enterprises to engage in variety research and development or seed production or business operation, the related review and approval shall be in compliance with the provisions of relevant laws and administrative regulations.

Chapter VIII

Support Measures

 Article 62   The state enhances support for the development of the seed industry. The state provides support for variety selective breeding, production, demonstration and promotion, germplasm resource protection, seed reserves, and major seed production counties.

The state encourages and promotes the use of efficient and safe technologies as well as advanced and applicable machinery for seed production and collection, and includes such advanced and applicable machinery for seed production and collection in the scope of subsidies for the purchase of agricultural machinery and equipment.

The state actively provides guidance for private sector investment in the seed industry.

Article 63   The state improves infrastructure for public interest in the seed industry and ensures that the reasonable land use demand for breeding research facilities is met.

Cultivated land within a breeding base for dominant seed is classified as permanent basic farmland. Such bases shall be determined by the competent department of agriculture and rural affairs under the State Council through consultation with the local people’s governments of provinces, autonomous regions, or municipalities directly under the Central Government.

Article 64 For the seed enterprises engaged in the selective breeding and seed production of crop and forest tree varieties, support shall be provided in accordance with the relevant regulations of the state.

Article 65 The state provides encouragement and guidance for financial institutions to provide credit support for seed production, business operation, and stockpiling.

Article 66 The state supports insurance institutions in providing seed production insurance. The people’s government at or above the provincial level may take measures such as providing insurance premium subsidies to support the development of production insurance for the seed industry.

Article 67 The state encourages scientific research institutes and higher education institutions to conduct breeding scientific and technical personnel exchanges with seed enterprises and supports their own scientific and technical personnel in translating breeding research at seed enterprises; breeding scientific research talents are encouraged to make innovations and start businesses.

Article 68   The competent department of agriculture and rural affairs, the competent department of forestry and grassland under the State Council, and the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government where the ex-situ breeding of seeds takes place shall improve administration and coordination of the ex-situ breeding of seeds, and the transport departments shall give priority to the transport of such seeds.

Chapter IX

Legal Liability

Article 69   Where a competent department of agriculture and rural affairs or the competent department of forestry and grassland fails to make a decision on administrative licensing in accordance with law, fails to investigate and handle a discovered or reported illegal act, or fails to perform any other duty in accordance with this Law, the people’s government at the same level or the relevant department under the people’s government at a higher level shall order the said competent department to make rectification, and shall impose sanctions, in accordance with law, upon the responsible persons in charge and other directly responsible persons.

Any staff member of competent departments of agriculture and rural affairs or competent departments of forestry and grassland who, in violation of the provisions of Article 55 of this Law, engages in any seed production or business operation activity shall be given a sanction in accordance with law.

Article 70 Any committee member or staff member of a variety review and decision committee who, in violation of the provisions of Article 16 of this Law, fails to perform duties in accordance with law, resorts to deception or engages in malpractices for personal gains shall be given a sanction in accordance with law; the person shall not engage in variety review and decision within five years from the date the sanction decision is made.

Article 71  Where a variety test, variety trial or seed quality inspection institution falsifies the test, trial or inspection data or issues a false certificate, it shall be ordered to make rectification by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, the said institution shall be fined not less than RMB 50,000 yuan but not more than RMB 100,000 yuan, and the directly responsible persons in charge and other directly responsible persons shall be respectively fined not less than RMB 10,000 yuan but not more than RMB 50,000 yuan; the illegal gains shall be concurrently confiscated if there are any; the said institution shall bear joint and several liability with the seed producer and operator where their act has caused losses to seed users or other seed producers or operators; where the circumstances are serious, the said institution shall be disqualified from seed quality inspection by the relevant competent department under the people’s government at or above the provincial level.

Article 72 Where any person, in violation of the provisions of Article 28 of this Law, performs any act infringing another’s variety right, the matter shall be settled by the parties through consultation, and where the parties are unwilling to conduct consultation or where the consultation fails, the variety right holder or an interested person may request the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level to handle it or may directly file a lawsuit with the people’s court.

The competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level may, based on the principle of the parties’ free will, mediate in compensation for the damage caused by the infringement of the variety right. Where a settlement agreement has been reached through mediation, it shall be performed by the parties concerned; where any party fails to perform the agreement or no agreement has been reached through mediation, the variety right holder or an interested person may, in accordance with law, file a lawsuit with the people’s court.

The amount of compensation for the damage caused by the infringement of the variety right shall be determined in accordance with the actual losses suffered by the right holder from the infringement; where it is difficult to determine the actual losses, the amount of compensation may be determined in accordance with the interests obtained by the infringer therefrom. Where it is difficult to determine the losses suffered by the right holder or the interests obtained by the infringer, the amount of compensation may be reasonably determined based on the multiple of the license fee of the said variety right. In the case of an intentional infringement of a variety right, where the circumstances are serious, the amount of compensation may be determined as not less than one time but not more than five times the amount determined in accordance with the aforementioned method.

Where it is difficult to determine the losses suffered by the right holder, the interests obtained by the infringer, and the license fee of the variety right, a compensation of not more than RMB 5,000,000 yuan may be determined by the people’s court based on factors such as the type of the variety right and the nature and circumstances of the infringing act.

The amount of compensation shall include the reasonable expenses incurred by the right holder for stopping the infringing act.

When handling a case of infringement of variety rights, the competent department of agriculture and rural affairs or the competent department for forestry and grassland under the people’s government at or above the county level shall, for the purposes of safeguarding the public interests, order the infringer to stop the infringing act and confiscate the illegal gains and seeds; where the value of goods is less than RMB 50,000 yuan, a fine of not less than RMB 10,000 yuan but not more than RMB 250,000 yuan shall be concurrently imposed; where the value of goods is RMB 50,000 yuan or more, a fine of not less than five times but not more than ten times the value of the goods shall be concurrently imposed.

Where any protected variety is counterfeited, the counterfeiter shall be ordered to stop such counterfeiting act by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, and the illegal gains and seeds shall be confiscated; where the value of goods is less than RMB 50,000 yuan, a fine of not less than RMB 10,000 yuan but not more than RMB 250,000 yuan shall be concurrently imposed; where the value of goods is RMB 50,000 yuan or more, a fine of not less than five times but not more than ten times the value of the goods shall be concurrently imposed.

Article 73 Where any dispute arises between the parties over the right to apply for or the ownership of a variety right, they may file a lawsuit with the people’s court.

Article 74  Where any person, in violation of the provisions of Article 48 of this Law, engages in the production or business operation of fake seeds, the person shall be ordered to cease production or business operation by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, the illegal gains and seeds shall be confiscated, and the seed production and operation license shall be revoked; where the value of goods involved in the illegal production or operation is less than RMB 20,000 yuan, a fine of not less than RMB 20,000 yuan but not more than RMB 200,000 yuan shall be concurrently imposed; where the value of goods is RMB 20,000 yuan or above, a fine of not less than ten times but not more than twenty times the value of the goods shall be concurrently imposed.

Where the legal representative of a seed enterprise or any other entity, or a directly responsible person in charge is sentenced to fixed-term imprisonment or above for a crime involving the production or business operation of fake seeds, the person shall not serve as the legal representative or a senior management officer of a seed enterprise within five years from the date of completion of the sentence.

Article 75  Where any person, in violation of the provisions of Article 48 of this Law, engages in the production or business operation of inferior seeds, the person shall be ordered to cease production or operation by the competent department for agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, and the illegal gains and seeds shall be confiscated; where the value of goods involved in the illegal production or business operation is less than RMB 20,000 yuan, a fine of not less than RMB 10,000 yuan but not more than RMB 100,000 yuan shall be concurrently imposed; where the value of goods is RMB 20,000 yuan or above, a fine of not less than five times but not more than ten times the value of goods shall be concurrently imposed; where the circumstances are serious, the seed production and operation license shall be revoked.

Where the legal representative of a seed enterprise or any other entity, or a directly responsible person in charge is sentenced to fixed-term imprisonment or above for a crime involving the production or business operation of inferior seeds, the person shall not serve as the legal representative or a senior management officer of a seed enterprise within five years from the date of completion of the sentence.

Article 76 Where any person, in violation of the provisions of Article 32, 33, or 34 of this Law, commits any of the following acts, the person shall be ordered by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level to make rectification, and the illegal gains and the seeds shall be confiscated; where the value of goods involved in the illegal production or business operation is less than RMB 10,000 yuan, a fine of not less than RMB 3,000 yuan but not more than RMB 30,000 shall be concurrently imposed; where the value of goods is RMB 10,000 yuan or above, a fine of not less than three times but not more than five times the value of goods shall be concurrently imposed; and the seed production and operation license may be revoked:

(1)   conducting seed production or business operation without obtaining the seed production and operation license;

(2)   obtaining the seed production and operation license by deception, bribery, or other improper means;

(3)   failing to conduct seed production or business operation in accordance with the provisions of the seed production and operation license;

(4)   forging, altering, trading in, or leasing the seed production and operation license;

(5)    continuing to engage in seed production when no longer meeting the isolation or breeding conditions for propagating seeds, or when no longer having the seed production bases free of quarantine pests or seed stands determined by the competent department of forestry and grassland under the people’s government at or above the county level; or

(6)   producing seeds without following the rules for seed inspection and quarantine.

Where the seed production and operation license of an entity is revoked, its legal representative or a directly responsible person in charge shall not serve as the legal representative or a senior management officer of a seed enterprise within five years from the date when the decision on the penalty is made.

Article 77 Where any person, in violation of the provisions of Article 21, 22, or 23 of this Law, commits any of the following acts, the person shall be ordered to stop the illegal act by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, the illegal gains and seeds shall be confiscated, and a fine of not less than RMB 20,000 yuan but not more than RMB 200,000 yuan shall be concurrently imposed:

(1)   promoting or selling any crop variety that are not reviewed and decided as required;

(2)   promoting or selling as an improved variety any forest tree variety that are not reviewed and decided as required;

(3)   promoting or selling any crop variety or improved forest tree variety whose promotion or sale shall be ceased;

(4)   promoting any crop variety that are not registered as required, or selling such crop variety in the name of a registered variety; or

(5)   promoting any crop variety whose registration has been revoked, or selling such crop variety in the name of a registered variety.

Where any person, in violation of the provisions of Article 23 or 41 of this Law, publishes an advertisement on a crop variety that are not reviewed and decided or registered as required, or the descriptions of the main traits of the relevant variety in the advertisement are inconsistent with those stated in the review and decision or the registration announcement, the person shall be subject to legal liability in accordance with the relevant provisions of the Advertising Law of the People’s Republic of China.

Article 78 Where any person, in violation of the provisions of Article 57, 59, or 60 of this Law, commits any of the following acts, the person shall be ordered by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level to make rectification, and the illegal gains and the seeds shall be confiscated; where the value of goods involved in the illegal production or business operation is less than RMB 10,000 yuan, a fine of not less than RMB 3,000 yuan but not more than RMB 30,000 yuan shall be concurrently imposed; where the value of goods is RMB 10,000 yuan or above, a fine of not less than three times but not more than five times the value of goods shall be concurrently imposed; where the circumstances are serious, the seed production and operation license shall be revoked:

(1) importing or exporting seeds without authorization;

(2) selling in China the imported seeds and the seeds produced for foreign countries from such imported seeds;

(3) selling in China the harvest from crop or forest tree seeds, which are introduced from abroad for introduction trial, as seeds; or

(4) importing or exporting fake or inferior seeds or the seeds that shall not be imported or exported by the regulations of the state.

Article 79   Where any person, in violation of the provisions of Article 36, 38, 39 or 40 of this Law,  commits any of the following acts, the person shall be ordered by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level to make rectification, and shall be fined not less than RMB 2,000 yuan and not more than RMB 20,000 yuan:

(1)   selling seeds that should have been packaged;

(2)   selling seeds with no instructions for use attached or with labels whose contents are not in compliance with the relevant regulations;

(3)   altering labels;

(4)   failing to create or keep files of seed production and business operation in accordance with regulations; or

(5)   failing to file for the record in accordance with regulations when a seed producer or operator establishes a branch in a different place, specially operates the business of packaged seeds that are not to be repackaged into smaller packages, or is entrusted to produce or sell seeds as an agent.

Article 80  Where any person, in violation of the provisions of Article 8 of this Law, misappropriates or damages germplasm resources or collects or cuts plants with key state-protected natural germplasm resources without approval, the person shall be ordered to stop the illegal act by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, the germplasm resources and the illegal gains shall be confiscated, and a fine of not less than RMB 5,000 yuan but not more than RMB 50,000 yuan shall be concurrently imposed; where any loss is caused, the liability for compensation shall be borne in accordance with law.

Article 81 Where any person, in violation of the provisions of Article 11 of this Law, provides germplasm resources abroad or introduces germplasm resources from abroad, or cooperates with any foreign institution or individual in research on germplasm resource exploitation, the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the State Council or the people’s government of the province, autonomous region, or municipality directly under the Central Government shall confiscate the germplasm resources and the illegal gains, and concurrently impose a fine of not less than RMB 20,000 yuan but not more than RMB 200,000 yuan.

Where germplasm resources are being carried or transported out of China without obtaining the approval documents from the competent departments of agriculture and rural affairs or the competent departments of forestry and grassland, the customs shall seize the said germplasm resources and transfer the cases to the competent departments of agriculture and rural affairs or the competent departments of forestry and grassland under the people’s governments of provinces, autonomous regions, or municipalities directly under the Central Government for handling.

Article 82 Where any person, in violation of the provisions of Article 35 of this Law, plunders unripe seeds, damages mother trees, or collects seeds in inferior forest stands or from inferior mother trees, the person shall be ordered by the competent department of forestry and grassland under the people’s government at or above the county level to cease such acts, the seeds collected shall be confiscated, and a fine of not less than twice but not more than five times the value of the collected seeds shall be concurrently imposed.                                                                                                                                                      

Article 83 Where any seed enterprise, in violation of the provisions of Article 17 of this Law, commits fraud, it shall be fined not less than RMB 1,000,000 yuan but not more than RMB 5,000,000 yuan by the competent department of agriculture and rural affairs or the competent department of forestry and grassland of the people’s government at or above the provincial level, and it shall no longer apply for variety review and decision in line with provisions of Article 17 of this Law. Where any loss is caused to any seed user or any other seed producer or operator, the enterprise shall bear the liability for compensation in accordance with law.

Article 84  Where any entity, in violation of the provisions of Article 44 of this Law, fails to exploit improved forest tree varieties in accordance with the plan formulated by the competent department of forestry and grassland, the person shall be ordered to make rectification within a prescribed time limit by the competent department of forestry and grassland under the people’s government at the same level; where rectification is not made prior to the expiration of the time limit, a fine of not less than RMB 3,000 yuan but not more than RMB 30,000 yuan shall be imposed.

Article 85  Any person who, in violation of the provisions of Article 53 of this Law, conducts the quarantine pest inoculation trial at a seed production base shall be ordered to cease such trial by the competent department of agriculture and rural affairs or the competent department of forestry and grassland under the people’s government at or above the county level, and shall be fined not less than RMB 5,000 yuan but not more than RMB 50,000 yuan.

Article 86  Any person who, in violation of the provisions of Article 49 of this Law, refuses or obstructs the supervision and inspection conducted in accordance with law by the competent departments of agriculture and rural affairs or the competent departments of forestry and grassland, shall be fined not less than RMB 2,000 yuan but not more than RMB 50,000 yuan, and may be ordered to suspend production or business operation for rectification; where any violation of public security administration is constituted, a public security administration penalty shall be imposed by the public security organ in accordance with law.

Article 87  Any person who, in violation of the provisions of Article 13 of this Law, trades in breeding research results privately and causes any economic loss to the entity thereof, shall bear the liability for compensation in accordance with law.

Article 88    Any person who, in violation of the provisions of Article 43 of this Law, forces any seed user to purchase or use the seeds against his free will and thus causes any loss to the seed user shall bear the liability for compensation.

Article 89 Any person whose violation of this Law constitutes a crime shall be held criminally liable in accordance with law.