According to the PRC law, an administrative penalty is a fine or detention imposed on an individual or entity for violating administrative regulations. An administrative penalty is a punishment for noncompliant acts that do not constitute a crime.
In the case of a crime, a record of criminal penalty will be maintained. While in the case of an administrative violation, a record of administrative penalty will be maintained. The difference between such records is that the former has a material adverse effect on the career of the criminal, especially when he/she holds public office or is a government official or political party leader, while the latter almost has no adverse effect or, if it does, results in a bad reputation of the actor.
Administrative penalties must be imposed following the principle of fairness and openness. Fairness means that administrative penalties must be imposed considering the facts, depending on the severity and nature of the consequences, malice or negligence, and other relevant factors. Openness means that the rules for imposing administrative penalties must be made public, and no published rules shall be applied for imposing administrative penalties.
Administrative penalties should be combined with correction and education to ensure that individuals and entities will adhere to legal provisions, public policies, and moral standards. And mandatory measures, such as arrest and detention, should not be taken unless it is necessary, for example, when the actor refuses to provide assistance in investigation, evidence collection, enforcement, or other activities of police officers or court officers.
If an individual or entity on whom/which an administrative penalty is imposed has an objection to the penalty, he/it may file a petition to the next higher authority of the entity imposing such penalty for reconsideration. And in case of an objection to the decision made after reconsideration, the individual or entity may also file an administrative lawsuit according to law. And if the individual or entity wins in the case, he/it may apply for national compensation according to the standard stipulated in the applicable regulations.
