[Guangdong High Court] Guidelines on Correctly Grasping the Scope and Conditions for Inclusion in the List of Dishonest Executed Persons and Restriction of Consumption (2020)
CATALOGUE
1、Five Inclusions
（1）Failure to perform what one is capable of performing is a loss
（2）It is impossible to resist the evasion of enforcement
（3）Violations of the property reporting system are liable to be forfeited
（4）Failure to comply with the restriction order will result in forfeiture
（5）Failure to perform a settlement agreement without good reason will be lost
2、Three restrictions
（1）Those who are included in the list of dishonesty should limit their consumption
（2）The final case should be limited to consumption
（3）Failure to perform the obligation of payment may limit the consumption
3、Six prohibitions
（1）Controlled property is sufficient to cover prohibited losses and limited consumption
（2）The guarantee is sufficient to repay the prohibited loss and limit the consumption
（3）Failure to fulfill the conditions shall prohibit loss and limit consumption
（4）The minor child of the person under execution shall not be allowed to lose
（5）The unit is prohibited from admitting the four types of people
（6）Government agencies prohibit restrictions on consumption
4、Six precautions
（1）Campus loans and "routine loans" are carefully reviewed and limited
（2）Controlled property may be used to cover prudent losses and limit consumption
（3）The disabled and the poor are carefully admitted to live in poverty
（4）Hospital schools and nursing homes are cautious about limiting consumption
（5）Enterprises involved in disaster relief, rescue and epidemic prevention should prudently accept losses and limit consumption
（6）Government departments, public institutions, neighborhood committees and village committees should limit consumption cautiously
5、Seven-year grace period
（1）Small businesses affected by the epidemic can be given a reprieve
（2）Listed companies with key enterprises can be lenient
（3）Enterprises with good credit records can be lenient
（4）Some debts can be forgiven if they are paid off voluntarily
（5）Full-time college students and fresh graduates are exempted
（6）The applicant for enforcement agrees to a grace period
（7）The execution of other claims of the person subject to enforcement may be extended
6、Delete 11
（1）The breach of trust shall be deleted when the period of inclusion expires
（2）The act of performing the effective instrument shall be deleted if the obligation is fulfilled
（3）The breach of trust shall be deleted when the settlement agreement is fulfilled
（4）The case of bankruptcy shall be accepted and the dishonesty shall be deleted
（5）The suspension of execution in retrial shall delete the dishonesty
（6）Failure to enforce shall result in deletion of the breach of trust
（7）The termination of execution shall remove the dishonesty
（8）If there is no property after two inquiries after the end of the case, the dishonesty shall be deleted
（9）The applicant for enforcement may apply for deletion of dishonesty
（10）Active performance of effective instruments can remove dishonesty
（11）Taking the initiative to correct dishonest behavior can delete dishonesty
7、Seven releases
（1）The restriction on consumption shall be lifted upon completion of the performance of the effective instrument
（2）The restriction on consumption by the "four types of people" shall be temporarily lifted if they consume their personal property for private purposes
（3）The original legal representative and the principal person in charge of the unit may lift the restriction on consumption
（4）The applicant for enforcement agrees to lift the restriction
（5）Full security can be provided to remove the restriction
（6）In case of emergency, the restriction on consumption can be temporarily lifted by air and high-speed rail
（7）Other restrictions may be temporarily lifted for the necessities of life or business
To guide the enforcement officers of courts across the province in correctly understanding the scope and conditions for listing individuals as dishonest debtors and restricting their high consumption, to standardize and strengthen the punishment for dishonesty, and to practice the principles of lawful, standardized, and benevolent and civilized enforcement, this guideline is formulated based on the Civil Procedure Law, the Supreme People's Court's Provisions on the Publication of Information on Dishonest Debtors, the Supreme People's Court's Provisions on Restricting High Consumption and Relevant Consumption by Debtors, and the Supreme People's Court's Opinions on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work. This guideline is tailored to the actual enforcement work of courts in our province.
1、Five Inclusions
(1)Failure to perform what one is capable of performing is a loss
1. Definition: If the person subjected to execution has the ability to perform but refuses to perform the obligations determined by the effective legal documents, the people's court shall include him in the list of persons subjected to execution who are not trustworthy and impose credit punishment on him according to law.
2. Basis: According to Article 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties," if an executed party fails to fulfill the obligations determined by effective legal documents and falls under any of the following circumstances, the people's court shall include them in the list of dishonest executed parties and impose credit penalties according to law: (1) having the ability to perform but refusing to fulfill the obligations determined by effective legal documents;......"
3. Applicability: According to the fifth point of the "Guangdong Provincial Higher People's Court's Answers on Several Issues Concerning the Restriction of Consumption and the Inclusion of Dishonest Executed Parties in the List of Dishonest Executed Parties": "Q: How is the element 'having the ability to perform but refusing to perform the obligations determined by effective legal documents' defined in Article 1, Item (1) of the 'Regulations on Dishonesty'? What are the common scenarios? A: 1. When the executed party has assets available for execution when bearing monetary obligations, and has the ability to fulfill the obligations when bearing performance obligations, but actively evades or passively neglects to perform, this is considered 'having the ability to perform but refusing to perform the obligations determined by effective legal documents.' This includes both having the full ability to perform and having partial ability to perform. 2. The following scenarios can be recognized as 'having the ability to perform but refusing to perform the obligations determined by effective legal documents': (1) Refusing to perform behavioral obligations; (2) Refusing to deliver movable property such as vehicles and vessels that have been sealed by the court but not yet under actual control; (3) Refusing to relocate after the court issues a relocation notice for immovable property such as houses and land; (4) The executed party's income, including wages, significantly exceeds the necessary expenses for the executed party and their dependents, yet still refuses to perform monetary obligations; (5) The executed party waives or neglects to claim their creditor rights."
(2)It is impossible to resist the evasion of enforcement
1. Definition: If the person subject to enforcement fails to fulfill the obligations determined by an effective legal document and obstructs or resists enforcement through methods such as forging evidence, violence, or threats, or evades enforcement through false litigation, false arbitration, or concealing or transferring assets, the People's Court shall include them in the list of dishonest persons subject to enforcement and impose credit penalties according to law.
2. Basis: According to Article 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties," if an executed party fails to fulfill the obligations determined by effective legal documents and exhibits any of the following circumstances, the people's court shall include them in the list of dishonest executed parties and impose credit penalties according to law:... (2) obstructing or resisting enforcement through forgery of evidence, violence, threats, etc.; (3) evading enforcement through false litigation, false arbitration, or concealing or transferring assets;......"
3. Applicable: According to Article 6 of the "Guangdong Provincial Higher People's Court's Answers to Several Issues on Restricting Consumption and Including Dishonest Executed Parties in the List of Dishonest Executed Parties": "Q: What situations can be considered as 'evading enforcement' under Article 1, Item (3) of the Dishonest Provisions? A: The following actions can be considered as 'evading enforcement': 1. Obstructing enforcement through false litigation or arbitration; 2. Transferring, damaging, concealing, or disposing of the executed party's property at a low price, or other actions that prevent the disposal of property, delay its disposal, or reduce its value; 3. Obstructing enforcement through malicious objections, litigation, or by maliciously setting up leases, mortgages, pledges, or debts; 4. Evading the court's search for the whereabouts and business premises of the executed party through relocation of residence, transfer of premises, change of key personnel, cancellation of phone numbers, or change of registered address."
(3) Violations of the property reporting system are liable to be forfeited
1. Interpretation: If the person subjected to execution fails to perform the obligations determined by the effective legal documents and violates the property reporting system, the people's court shall include him in the list of persons subjected to execution who are not trustworthy and impose credit punishment on him according to law.
2. Basis:According to Article 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties": "If an executed party fails to fulfill the obligations determined by effective legal documents and falls under any of the following circumstances, the people's court shall include them in the list of dishonest executed parties and impose credit penalties according to law:... (4) Violation of the property reporting system;...". Article 10 of the "Provisions of the Supreme People's Court on Several Issues Concerning Property Investigation in Civil Enforcement": "If an executed party refuses to report, provides false reports, or fails to report their property status without justifiable reasons, the people's court shall include them in the list of dishonest executed parties according to relevant regulations."
3. Applicable: According to Article 7 of the "Guangdong Provincial Higher People's Court's Answers to Several Issues on Restricting Consumption and Including Dishonest Executed Parties in the List of Dishonest Executed Parties": "Q: When a court includes an executed party in the list of dishonest executed parties for 'violating the property reporting system,' what matters should be reviewed? A: The court should review the following matters: 1. Whether a property reporting order has been issued. The issuance methods include, but are not limited to: (1) Directly delivering the execution notice and property reporting order to the executed party; (2) Delivering the execution notice and property reporting order to the address confirmed by the executed party during the trial and execution procedures; (3) If the executed party or their adult family members refuse to accept the execution notice and property reporting order, the court will leave the documents at the executed party's residence and record the delivery process through photography, video, etc.; (4) Delivering the execution notice and property reporting order to the phone number, delivery address, fax, email, etc., bound to the executed party's real-name verified social, shopping, investment, and other online platforms. 2. Whether the executed party has refused to report, provided false reports, or failed to report property without justifiable reasons."
(4) Failure to comply with the restriction order will result in forfeiture
1. Interpretation: If the person subjected to execution fails to perform the obligations determined by the effective legal documents and violates the order restricting consumption, the people's court shall include him in the list of persons subjected to execution who are not trustworthy and impose credit punishment on him according to law.
2. Basis: According to Article 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties," if an executed party fails to fulfill the obligations determined by effective legal documents and falls under any of the following circumstances, the people's court shall include them in the list of dishonest executed parties and impose credit penalties according to law:... (5) Violation of the consumption restriction order;......"
(5) Failure to perform a settlement agreement without good reason will be lost
1. Interpretation: If the person subjected to execution fails to perform the obligations determined by the effective legal documents and refuses to perform the execution settlement agreement without justifiable reasons, the people's court shall include him in the list of persons subjected to execution who are not trustworthy and impose credit punishment on him according to law.
2. Basis: According to Article 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties": "If an executed party fails to fulfill the obligations determined by effective legal documents and falls under any of the following circumstances, the people's court shall include them in the list of dishonest executed parties and impose credit penalties according to law:... (6) refuses to comply with the execution settlement agreement without justifiable reasons."
2、Three restrictions
(1) Those who are included in the list of dishonesty should limit their consumption
1. Interpretation: The people's court shall take measures to restrict the consumption of the person subjected to execution who is included in the list of persons subjected to execution for dishonesty.
2. Basis: Article 1, Paragraph 2 of the Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Persons Subject to Execution: "The people's court shall take measures to restrict consumption by persons subject to execution who are included in the list of persons subject to execution who are dishonest."
(2) The final case should be limited to consumption
1. Interpretation: Before the execution procedure of the execution case is terminated, the people's court shall issue a restriction order to the person subjected to execution.
2. Basis: Article 1 of the Provisions of the Supreme People's Court on Strictly Regulating the Termination of Execution Procedures (Trial) states that "The people's court shall terminate the execution procedures at the same time if the following conditions are met:... (2) A consumption restriction order has been issued to the person subjected to execution, and the person subjected to execution who meets the conditions has been included in the list of persons subjected to execution who are not trustworthy;......"
(3) Failure to perform the obligation of payment may limit the consumption
1. Interpretation: If the person subjected to execution fails to perform the payment obligation determined by the effective legal document within the period specified in the notice of execution, the people's court may take measures to restrict consumption.
2. Basis:According to Article 1, Paragraph 1 of the "Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Executed Parties": "If an executed party fails to fulfill the payment obligations as specified in the execution notice within the designated period, the people's court may impose consumption restrictions, limiting high consumption and non-essential consumption for life or business purposes."
3. Applicability: According to Article 7 of the "Guangdong Provincial Higher People's Court's Answers to Several Issues on Restricting Consumption and Including Dishonest Executed Parties in the List of Dishonest Executed Parties": "1. Q: How is the scope of 'payment obligations' defined in the first paragraph of Article 1 of the 'Regulations on Restricting Consumption'? A: Payment obligations include both monetary payments and performance obligations. Monetary payments include principal of claims, interest on general debts, interest or penalties for delayed performance, litigation fees, and enforcement fees, etc., while performance obligations include acts of commission and omission.... 2. Q: How is the standard for 'high consumption and non-essential consumption not related to life or business' defined in the first paragraph of Article 1 of the 'Regulations on Restricting Consumption'? A: 1. For items explicitly stipulated in documents such as the 'Regulations on Restricting Consumption,' the 'Opinions of the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council on Accelerating the Construction of Credit Supervision, Warning, and Punishment Mechanisms for Dishonest Executed Parties,' and the 'Memorandum of Cooperation on Joint Punishment for Dishonest Executed Parties by the National Development and Reform Commission, the Supreme People's Court, and Others,' (such as purchasing real estate; flying on airplanes, G-series high-speed trains, soft sleeper compartments on trains, second-class cabins or above on ships; participating in group tours organized by travel agencies; spending at golf courses and resorts rated with tourism levels), these provisions shall be followed. 2. For items where the relevant documents have inconsistent provisions, the relatively broader standard shall be temporarily applied, such as hotels with four-star ratings or higher, high-grade hotels, and high-consumption hotels." 3. For the general description of "high consumption", "high-grade decoration" and "high charges" in relevant documents, specific standards can be determined by comprehensively considering all aspects of the situation and referring to the relevant data of the per capita annual consumption expenditure of residents in the city where the residence or habitual residence of the person subjected to execution is located, as published by the national statistical department."
3、Six prohibitions
(1) Controlled property is sufficient to cover prohibited losses and limited consumption
1. Interpretation: If the property of the person subjected to execution is sealed, detained or frozen by the people's court enough to pay off the debt, the person subjected to execution shall not be included in the list of dishonest persons or restricted from consumption on the grounds that he refuses to perform the obligations determined by the effective legal documents or refuses to perform the settlement agreement without justifiable reasons.
2. Basis: According to Article 3 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties": "In any of the following circumstances, the people's court shall not include the executed party in the list of dishonest executed parties under the provisions of Article 1, Item 1 of these Provisions:... (2) The property that has been sealed, seized, or frozen is sufficient to settle the debt determined by the effective legal document;......"."
Article 16 of the "Opinion of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work" states: "Several scenarios where no punitive measures will be taken. If the person subject to enforcement has the ability to fulfill but refuses to comply with the obligations determined by effective legal documents, or refuses to comply with a settlement agreement without justifiable reasons, but the court has already controlled assets sufficient to settle the debt, or if the applicant for enforcement requests that no punitive measures be taken temporarily, then no punitive measures such as inclusion in the list of untrustworthy individuals or restrictions on consumption shall be imposed on the person subject to enforcement......."."
3. Applicability: If the People's Court has sealed, seized, or frozen the property of the person subject to enforcement sufficient to settle the debt, it shall not impose measures such as listing them on the list of untrustworthy individuals or restricting their consumption based on their refusal to comply with the obligations determined by the effective legal document or their refusal to comply with the reconciliation agreement without justifiable reasons. However, if the person subject to enforcement engages in acts that obstruct enforcement, leading to the inability to smoothly execute the controlled property, the People's Court may still take measures such as listing them on the list of untrustworthy individuals or restricting their consumption.
(2)The guarantee is sufficient to repay the prohibited loss and limit the consumption
1. Interpretation: If the person subjected to execution has provided sufficient and effective guarantee, the people's court shall not take measures to include the person subjected to execution in the list of dishonest persons or restrict his consumption on the grounds that he refuses to perform the obligations determined by the effective legal document or refuses to perform the settlement agreement without justifiable reasons.
2. Basis: According to Article 3 of the Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Persons, "The people's court shall not include the executed person in the list of dishonest executed persons according to the provisions of Article 1, Paragraph 1 of these Provisions if: (1) sufficient and effective security has been provided;......"
3. Applicability: According to Article 174 of the Property Law of the People's Republic of China, "During the guarantee period, if the pledged property is damaged, lost, or expropriated, the pledgee has the right to be preferentially compensated from the insurance money, compensation, or indemnity received." This means that if the pledged property is damaged, lost, or expropriated during the guarantee period, and the pledged property is converted into insurance money, compensation, or indemnity, the applicant for enforcement has the right to be preferentially compensated from these proceeds. After obtaining these proceeds, the person subject to enforcement must fulfill the obligation to pay the proceeds within the time frame specified in the enforcement notice. If they fail to comply, the court may include them in the list of untrustworthy individuals and impose consumption restrictions.
(3)Failure to fulfill the conditions shall prohibit loss and limit consumption
1. Interpretation: If the person subjected to execution fails to fulfill the obligations due to reasons such as the order of performance is later or the share of inheritance has not been determined, the people's court shall not take measures to include the person subjected to execution in the list of dishonest persons or restrict his consumption on the grounds that he refuses to perform the obligations determined by the effective legal document or refuses to perform the settlement agreement without justifiable reasons.
2. Basis:According to Article 3 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties": "In any of the following circumstances, the people's court shall not include the executed party in the list of dishonest executed parties under the provisions of Article 1, Item 1 of these Provisions:... (3) The executed party is in a later position in the order of performance and should not be subject to compulsory execution according to law;......"."
3. Applicability: Article 67 of the Contract Law states: "When parties owe each other debts and there is a sequence for performance, if the party with the obligation to perform first fails to do so, the party with the obligation to perform second has the right to refuse the former's request for performance. If the party with the obligation to perform first performs the debt in a manner inconsistent with the agreement, the party with the obligation to perform second has the right to refuse the corresponding performance request." Article 17, Paragraph 2 of the Guarantee Law states: "In a general guarantee, the guarantor may refuse to bear the guarantee liability to the creditor before the principal contract dispute has been adjudicated or arbitrated, and the debtor's property has been legally enforced but still cannot fulfill the debt." Before the People's Court completes the compulsory execution of the obligor who bears the obligation of performing first, it cannot determine the amount that the obligor who bears the obligation of performing second should pay. At this time, the conditions for the obligor who bears the obligation of performing second to perform have not yet been met, and there is no basis for implementing measures such as restricting consumption or listing them as untrustworthy obligors.
Article 33 of the Inheritance Law states: "When inheriting an estate, the heir must settle the taxes and debts that the deceased was legally obligated to pay, with the settlement being limited to the actual value of the estate. Any amount exceeding the actual value of the estate is not required to be repaid by the heir, unless the heir voluntarily chooses to repay it. If the heir renounces the inheritance, they are not responsible for repaying the taxes and debts that the deceased was legally obligated to pay." Before the heir's share is determined, if the court cannot determine the actual value of the estate that the heir should inherit, there is no legal basis for listing the heir as untrustworthy or restricting their consumption. However, if the heir delays in determining their share or fails to actively report their share to the court, the court may still list the heir as untrustworthy or restrict their consumption.
(4) The minor child of the person under execution shall not be allowed to lose
1. Interpretation: If the person subjected to execution is a minor, the people's court shall not include him in the list of dishonest persons subjected to execution.
2. Basis: Article 4 of the Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Persons states that "If the executed person is a minor, the people's court shall not include him in the list of dishonest executed persons."
(5) The unit is prohibited from admitting the four types of people
1. Interpretation: If an entity is a dishonest person subjected to execution, the people's court shall not include its legal representative, principal responsible person, persons directly responsible for debt performance, actual controller, etc., into the list of dishonest persons.
2. Basis:According to Article 16 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work": "Several scenarios where no punitive measures will be taken.... If a unit is a dishonest debtor, the people's court shall not include its legal representative, principal responsible person, direct responsible person affecting debt performance, or actual controller in the list of dishonest entities......"."
(6) Government agencies prohibit restrictions on consumption
1. Interpretation: If a government agency is included in the list of dishonest persons subjected to execution, it shall not restrict its consumption.
2.Basis: According to the fifth point of the "Notice of the Supreme People's Court on Matters Concerning the Inclusion of Government Agencies in the List of Dishonest Executed Parties": "For government agencies included in the list of dishonest parties, only non-restriction measures will be announced. Considering the social governance role of government agencies, to avoid disrupting their social management functions, starting today, government agencies (local governments at all levels, excluding local government departments, public institutions, and grassroots self-governing organizations such as residents' committees and villagers 'committees) will no longer face restrictions on high consumption or related consumption. Instead, the information on these government agencies will be published according to the' Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties.'
4、Six precautions
（1）Campus loans and "routine loans" are carefully reviewed and limited
1. Interpretation: Generally, those who become the person subjected to execution due to "campus loan" or "routine loan" will not be included in the list of dishonest persons or restricted from consumption.
2. Basis: According to Article 16 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work": "Several scenarios where no punitive measures will be taken.... Full-time students who become defendants due to disputes over' campus loans' generally shall not be included in the list of untrustworthy individuals or restricted from consumption."
3. Applicable: According to the second point of the "Notice on Further Strengthening the Standardization and Management of Campus Loans" issued by the China Banking Regulatory Commission (CBRC), the Ministry of Education, and the Ministry of Human Resources and Social Security: "To rectify irregularities, suspend campus online lending activities by online lending institutions. Local financial offices and CBRC bureaus should, based on their previous efforts to rectify campus online lending activities by online lending institutions, work with relevant departments to further intensify rectification efforts, preventing online lending institutions from engaging in highinterest lending, violent collection, and other behaviors that seriously endanger the safety of college students.... For those suspected of malicious fraud, violent collection, or the production, sale, and dissemination of obscene materials, they will be handed over to the public security and judicial authorities for criminal responsibility."
The first point of the "Notice of the Supreme People's Court on Properly Handling Civil Lending Cases According to Law" states: "Strengthen the review of lending facts and evidence. Scammers involved in' loan fraud' and other crimes exhibit characteristics of knowledge-based crimes, adept at creating a closed loop of evidence by inflating debts, creating bank transaction records, and deliberately going missing to create breaches of contract, thereby achieving their illegal objectives through civil litigation procedures."
（2）Controlled property may be used to cover prudent losses and limit consumption
1. Interpretation: If the property of the person subjected to execution is seized, detained or frozen by the people's court and may be sufficient to pay off the debt, the person subjected to execution shall not be included in the list of dishonest persons or restricted from consumption on the grounds that he refuses to perform the obligations determined by the effective legal documents or refuses to perform the settlement agreement without justifiable reasons.
2. Reason: According to Article 16 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Execution Work," if the court has already controlled assets sufficient to settle the debt, it should not impose punitive measures on the debtor. However, in practice, it is often difficult to determine whether the assets seized by the court are sufficient to settle the debt. In such cases, the focus should be on the "possibility" of the assets being sufficient to fully repay the debt after they are liquidated. If there is evidence that the controlled assets can fully repay the debt after liquidation, generally, no measures should be taken to include the debtor on the list of untrustworthy individuals or to restrict their consumption.
(3) The disabled and the poor are carefully admitted to live in poverty
1. Interpretation: The person subjected to execution is a special group such as a low-income family or a disabled person, or his property and income are insufficient to maintain a basic life due to other reasons. The people's court shall prudently take measures to include the person subjected to execution in the list of dishonest persons or restrict consumption.
2. Reason: Special groups such as recipients of subsistence allowances and the disabled, whose property and income are insufficient to maintain their basic life, generally do not have the ability to pay off debts, and do not meet the circumstances of having the ability to perform but failing to do so. Therefore, they are generally not included in the category of dishonesty.
(4) Hospital schools and nursing homes are cautious about limiting consumption
1. Interpretation: If the person subjected to execution is a hospital, school, nursing home or other public welfare institution, the people's court shall prudently take measures to restrict the consumption of the person subjected to execution.
2. Reasons: As hospitals, schools, nursing homes and other special execution subjects undertake social public welfare functions, if consumption restrictions are taken against them, it may seriously affect the medical treatment of hospitals, normal teaching of schools and pension work in nursing homes, so the enforcement measures should be taken carefully.
(5) Enterprises involved in disaster relief, rescue and epidemic prevention should prudently accept losses and limit consumption
1. Interpretation: During natural disasters or major public health emergencies, enterprises listed by the development and reform, and industry and information technology departments as key enterprises for epidemic prevention and control at the national or local level should generally not be subject to credit punishment or consumption restrictions. For enterprises involved in disaster relief and epidemic prevention that are not on the list of key enterprises, courts should also exercise caution when imposing credit punishment or consumption restrictions.
2. Basis: According to Article 7 of the "Guiding Opinions of the Supreme People's Court on Properly Handling Enforcement Cases Involving the COVID-19 Pandemic": "Accurately apply measures for punishing dishonesty and restricting consumption. These measures should effectively punish illegal and dishonest behaviors, such as evading or resisting enforcement, to further promote the development of the national credit system and improve the business environment. Establish and improve a graded and categorized punishment mechanism, accurately determine the conditions for applying measures for punishing dishonesty and restricting consumption, and continuously refine these measures to make them more precise and targeted. During the pandemic, enterprises listed by the National Development and Reform Commission or the Ministry of Industry and Information Technology as key enterprises for epidemic prevention and control should generally not be subject to measures for punishing dishonesty and restricting consumption; if such measures have already been taken and hindered epidemic prevention and control efforts, they should be promptly lifted and the applicant for enforcement should be informed of the relevant circumstances. For enterprises not listed as key enterprises for epidemic prevention and control, measures for punishing dishonesty and restricting consumption can be applied according to specific circumstances, following the aforementioned provisions......."."
(6) Government departments, public institutions, neighborhood committees and village committees should limit consumption cautiously
1. Interpretation: If the person subjected to execution is a government department, public institution, residents 'committee or villagers' committee, the people's court shall prudently take measures to restrict consumption of the person subjected to execution.
2. Reason: According to the fifth point of the "Notice of the Supreme People's Court on Matters Concerning the Inclusion of Government Agencies in the List of Dishonest Executed Parties," government agencies listed as dishonest are only subject to non-high consumption restrictions. Although the term' government agencies 'does not include local government departments, public institutions, and grassroots self-governing organizations such as residents' committees and villagers' committees, these organizations also play a role in social governance. Therefore, it is prudent to apply consumption restriction measures to these organizations as well.
5、Seven-year grace period
General basis: According to Article 15 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work," it stipulates: "A certain grace period should be appropriately set. Local courts may, based on the specific circumstances of each case, grant a grace period of one to three months to individuals who have been listed as untrustworthy or subject to consumption restrictions. During this grace period, their information regarding untrustworthiness or consumption restrictions will not be released. If, upon the expiration of the grace period, the individual still fails to fulfill the obligations determined by the effective legal document, their information will be released again, and corresponding punitive measures will be taken."
(1) Small businesses affected by the epidemic can be given a reprieve
1. Interpretation: For enterprises, especially micro, small and medium-sized enterprises, which are greatly affected by the epidemic or major natural disasters and have temporary business difficulties, the people's courts should, in principle, grant a three-month grace period before taking measures to punish dishonesty or restrict consumption according to law.
2. Basis:According to the "Guiding Opinions of the Supreme People's Court on Properly Handling Enforcement Cases Involving the COVID-19 Pandemic" Article 7: "... For enterprises, especially small and medium-sized micro-enterprises, that have been significantly affected by the pandemic and are currently facing operational difficulties, the people's courts should, in principle, grant a three-month grace period before legally taking measures to punish dishonesty or restrict consumption......."."
(2)Listed companies with key enterprises can be lenient
1. Interpretation: If the person subjected to execution is a listed company or key enterprise with strong solvency, the people's court may grant a certain period of leniency for execution at the request of the person subjected to execution.
2. Reasons: Generally, listed companies have relatively transparent management and assets, and strong solvency. Therefore, listing them on the list of untrustworthy entities or restricting their consumption can have a more significant impact. Key enterprises typically receive substantial policy support and have strong solvency. Thus, during enforcement, a grace period can be granted to listed companies and key enterprises.
(3) Enterprises with good credit records can be lenient
1. Interpretation: If the person subjected to execution has always had good credit, the people's court may, upon application by the person subjected to execution or on its own initiative, grant a certain period of grace for execution.
2. Reason: The construction of credit system should not only pay attention to the punishment of dishonesty, but also pay attention to the incentive of trustworthiness. Enterprises and individuals with good credit in the past are more likely to fulfill their obligations automatically.
(4) Some debts can be forgiven if they are paid off voluntarily
1. Interpretation: If the person subjected to execution voluntarily pays off a certain proportion of the debt in the process of execution, and promises in writing to perform all the debts within a certain period of time, the people's court may grant him a certain grace period at his application or on its own initiative.
2. Reason: If the person subjected to execution voluntarily repays part of the debt, he has shown his sincerity in fulfilling the debt, and giving him a certain grace period will help him to better fulfill the debt.
(5) Full-time college students and fresh graduates are exempted
1. Interpretation: The person subjected to execution is a full-time college student or fresh graduate, and the people's court may grant a certain period of leniency for execution.
2. Reasons: Full-time college students typically lack the financial means to support themselves, and even part-time jobs are usually only enough to cover tuition and daily living expenses. Fresh graduates, who have just left campus, also face significant pressure in independent living. These two groups of students are generally inexperienced and adaptable, which allows society to offer greater tolerance and opportunities for improvement.
(6) The applicant for enforcement agrees to a grace period
1. Interpretation: If the person subjected to execution applies for a grace period and the applicant for execution agrees in writing, the people's court may grant the person subjected to execution a certain grace period for execution.
2. Reasons: According to Article 10, Paragraph 1 of the Supreme People's Court's Provisions on the Publication of Information on Dishonest Executed Parties, "If any of the following circumstances apply, the people's court shall delete the information on dishonesty within three working days:... (3) The applicant for enforcement has submitted a written request to delete the information on dishonesty, and the people's court has reviewed and agreed;......"."
(7) The execution of other claims of the person subject to enforcement may be extended
1. Interpretation: If the person subjected to execution has no property available for execution, but other claims are being executed and the amount is sufficient to repay the applicant for execution, the people's court may give the person subjected to execution a certain period of leniency for execution.
2. Reasons: In this case, the person subjected to execution actually has the ability to repay, and the people's court should strive to promote the execution of the two cases, so as to resolve the dispute fundamentally and as a whole.
6、Delete 11
（1）The breach of trust shall be deleted when the period of inclusion expires
Interpretation: When the term for which the person subjected to execution is included in the list of persons subjected to execution who are not trustworthy expires, the people's court shall delete the information on dishonesty.
（2）The act of performing the effective instrument shall be deleted if the obligation is fulfilled
Interpretation: If the person subjected to execution has performed the obligations determined by the effective legal documents or the people's court has completed the execution, the people's court shall delete the information of dishonesty.
（3）The breach of trust shall be deleted when the settlement agreement is fulfilled
Interpretation: If the parties reach an execution settlement agreement and have fulfilled it, the people's court shall delete the information of dishonesty.
（4）The case of bankruptcy shall be accepted and the dishonesty shall be deleted
Interpretation: If the people's court lawfully rules to suspend the execution of the dishonest person subject to execution due to bankruptcy proceedings, the people's court shall delete the information of dishonesty.
（5）The suspension of execution in retrial shall delete the dishonesty
Interpretation: If the people's court lawfully rules to suspend the execution of the dishonest person subject to execution due to trial supervision, the people's court shall delete the information of dishonesty.
（6）Failure to enforce shall result in deletion of the breach of trust
Interpretation: If the people's court rules not to enforce execution according to law, the information of dishonesty shall be deleted.
（7）The termination of execution shall remove the dishonesty
Interpretation: Where the people's court decides to terminate execution according to law, the information of dishonesty shall be deleted.
（8）If there is no property after two inquiries after the end of the case, the dishonesty shall be deleted
Interpretation: After the termination of the execution procedure, if the property of the person subjected to execution is queried twice or more through the network execution investigation and control system, no property available for execution is found, and the applicant for execution or other persons fail to provide effective property clues, the people's court shall delete the information of dishonesty.
（9）The applicant for enforcement may apply for deletion of dishonesty
Interpretation: If the applicant for enforcement applies in writing to delete the information of dishonesty, the people's court shall delete the information of dishonesty if it agrees after examination.
（10）Active performance of effective instruments can remove dishonesty
Interpretation: If the dishonest person subject to execution actively performs the obligations determined by the effective legal documents, the people's court may decide to delete the information of dishonesty in advance.
（11）Taking the initiative to correct dishonest behavior can delete dishonesty
Interpretation: If the dishonest person subject to execution takes the initiative to correct his dishonest behavior, the people's court may decide to delete the information of dishonesty in advance.
According to Article 10, Paragraph 1 of the "Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Parties": "The people's court shall delete the information of dishonest parties within three working days under any of the following circumstances: (1) The executed party has fulfilled the obligations determined by the effective legal document or the court has completed the execution; (2) The parties have reached an enforcement settlement agreement and it has been fully performed; (3) The applicant for enforcement has submitted a written request to delete the information of dishonesty, and the court has reviewed and agreed; (4) After the termination of the current enforcement procedure, the network enforcement investigation system has queried the property of the executed party more than twice, and no executable property has been found, and the applicant for enforcement or others have not provided valid property clues; (5) Due to trial supervision or bankruptcy procedures, the court has legally ruled to suspend the enforcement against the dishonest executed party; (6) The court has legally ruled not to enforce; (7) The court has legally ruled to terminate the enforcement. If there is a time limit for inclusion, the provisions of the preceding paragraph do not apply. Within three working days after the expiration of the time limit for inclusion, the people's court shall delete the information of dishonesty."
Article 2, Paragraph 2 of the Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Persons: "If dishonest executed persons actively perform the obligations determined by effective legal documents or take the initiative to correct their dishonest behavior, the people's court may decide to delete the information of dishonesty in advance."
Application: The term "delete" in this Guideline corresponds to the term "block" in the enforcement system of the Supreme People's Court. In order to keep consistent with the terms used in the Provisions of the Supreme People's Court on the Publication of Information on Dishonest Executed Persons, the term "delete" is adopted instead of "block" in this Guideline.
According to Article 9 of the "Provisions of the Supreme People's Court on Strictly Regulating the Termination of the Current Enforcement Procedure (Trial Implementation)", it states: "After the termination of the current enforcement procedure, if the applicant discovers that the person subject to enforcement has available assets, they may apply to the enforcement court for the resumption of enforcement. The application for resuming enforcement is not subject to the limitation period for enforcement applications. If the enforcement court verifies the information, it shall resume enforcement. Within five years after the termination of the current enforcement procedure, the enforcement court must query the property of the person subject to enforcement through the network enforcement control system every six months and inform the applicant of the results. If the conditions for resuming enforcement are met, the enforcement court should promptly resume enforcement." Therefore, for those who have been included in the list of untrustworthy individuals without a time limit, after the termination of the current enforcement procedure, the enforcement court must query the property of the person subject to enforcement through the network enforcement control system every six months. After two or more queries, if no available assets are found and the applicant or others do not provide valid property clues, the people's court should delete the untrustworthy information within three working days.
7、Seven releases
（1）The restriction on consumption shall be lifted upon completion of the performance of the effective instrument
1. Interpretation: If the person subjected to execution has fulfilled the obligations determined by the effective legal document, the people's court shall lift the order restricting consumption.
2. Basis: According to Article 9 of the "Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Executed Parties": "During the period of consumption restriction... if the executed party fulfills the obligations determined by the effective legal document, the people's court shall promptly lift the consumption restriction order within the scope of the notice or announcement made in accordance with Article 6 of these Provisions."
(2) The restriction on consumption by the "four types of people" shall be temporarily lifted if they consume their personal property for private purposes
1. Interpretation: After the unit subjected to execution is restricted from consumption, its legal representative, principal person in charge, persons directly responsible for debt performance and actual controller shall be allowed to engage in consumption with personal property on the grounds of private consumption, which shall be approved after examination and verification.
2. Basis: Article 17 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Execution Work" states: "Several scenarios for lifting consumption restrictions. After the people's courts have imposed consumption restrictions on the person subject to enforcement, if the person subject to enforcement and their relevant personnel apply for the lifting or temporary lifting of these restrictions, they shall be handled as follows: (1) If a unit subject to enforcement, after being restricted from consumption, its legal representative, principal responsible person, direct responsible person affecting debt performance, or actual controller claims to engage in consumption with personal property for private reasons, and this is verified to be true, such claims shall be granted......."."
(3) The original legal representative and the principal person in charge of the unit may lift the restriction on consumption
1. Definition: If the legal representative or principal responsible person of an entity is restricted from high-end consumption, and if changes in management necessitate a change in this position, and the original legal representative or principal responsible person applies to lift the restrictions on their own consumption, they must provide evidence that they are not the actual controller of the entity or a direct responsible person affecting debt performance. If the court finds this to be true after review, it should grant the application.
2. Basis: According to Article 17 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in the Execution Work": "Several scenarios for lifting consumption restrictions. After the people's courts have imposed consumption restrictions on the person subject to enforcement, if the person subject to enforcement and their relevant personnel apply for the lifting or temporary lifting of these restrictions, they shall be handled as follows:... (2) If the legal representative or principal responsible person of a unit subject to enforcement changes due to management needs after the consumption restrictions are imposed, and the original legal representative or principal responsible person applies for the lifting of the consumption restrictions on themselves, they must provide evidence proving that they are not the actual controller of the unit or the direct responsible person affecting debt performance. If the people's courts find this to be true after review, they should grant the application and legally impose consumption restrictions on the changed legal representative or principal responsible person."
(4) The applicant for enforcement agrees to lift the restriction
1. Interpretation: During the period of consumption restriction, the people's court may lift the order restricting consumption on the person subjected to execution with the consent of the applicant for enforcement.
2. Basis: Article 9 of the Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Persons Subject to Execution: "During the period of consumption restriction, if the person subject to execution provides effective guarantee or obtains the consent of the applicant for execution, the people's court may lift the order of consumption restriction;......"
(5) Full security can be provided to remove the restriction
1. Interpretation: During the period of consumption restriction, if the person subjected to execution provides sufficient security, the people's court may lift the order of consumption restriction.
2. Basis: Article 9 of the Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Persons Subject to Execution: "During the period of consumption restriction, if the person subject to execution provides effective guarantee or with the consent of the applicant for execution, the people's court may lift the order of consumption restriction;......"
(6) In case of emergency, the restriction on consumption can be temporarily lifted by air and high-speed rail
1. Explanation: Individuals subject to consumption restrictions may apply to the People's Court for a temporary exemption from travel restrictions on flights and high-speed trains if they need to seek medical treatment for themselves or their close relatives due to serious illness, handle the funeral of a close relative, or participate in foreign affairs activities or important exams while performing or assisting with official duties. After a thorough review and approval by the court president, such individuals can be granted a temporary exemption period of up to one month.
2. Basis: According to Article 17 of the "Opinions of the Supreme People's Court on Further Strengthening the Concept of Benevolent and Civilized Enforcement in Enforcement Work": "Several scenarios for lifting consumption restrictions. After the people's court imposes consumption restrictions on the person subject to enforcement, if the person subject to enforcement and their relevant personnel apply for the lifting or temporary lifting of these restrictions, they shall be handled as follows:... (3) If a person subject to consumption restrictions needs to travel to another place due to urgent situations such as medical treatment for themselves or their close relatives, funeral arrangements for close relatives, or participating in foreign affairs activities or important exams while enforcing or cooperating with enforcement duties, they may apply to the people's court for a temporary lifting of the restrictions on air travel and high-speed rail travel. After strict review and approval by the president of the court, a temporary lifting period of up to one month can be granted...."
(7) Other restrictions may be temporarily lifted for the necessities of life or business
1. Interpretation: If the person subjected to execution who is restricted from consumption applies to the people's court for prohibited consumption activities due to the necessity of life or business, he may do so only after approval.
2. Basis: Article 8 of the Provisions of the Supreme People's Court on Restricting High Consumption and Relevant Consumption by Persons Subject to Execution states that "if a person subject to execution who is restricted from consumption engages in prohibited consumption activities for the necessities of life or business, he shall apply to the people's court and may only do so after approval."
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◆ Source of Material: The Highest Case Interpretation WeChat Official Account
[Guangdong High Court] Guidelines on Correctly Grasping the Scope and Conditions for Inclusion in the List of Dishonest Executed Persons and Restriction of Consumption (2020)
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