Home Brazilian Laws REGULATION ON THE ADMINISTRATION OF TOLL ROADS

REGULATION ON THE ADMINISTRATION OF TOLL ROADS

the State Council

Order of the State Council of the People’s Republic of China

No.417

The Regulation on the Administration of Toll Roads, which was adopted at the 61st executive meeting of the State Council on August
18, 2004, is hereby promulgated, and shall go into effect as of November 1, 2004.

Premier of the State Council Wen Jiabao

September 13, 2004

Regulation on the Administration of Toll Roads

Chapter I General Provisions

Article 1

In order to strengthen the administration on toll roads, to regulate the toll collection acts on toll roads, to maintain the lawful
rights and interests of the business operators and users of toll roads, and to promote the development of highway industry, the present
Regulation is formulated in accordance with the Highway Law of the People’s Republic of China (hereinafter referred to as the Highway
Law)

Article 2

The “toll roads” as mentioned in the present Regulation, shall refer to the roads (including bridges and tunnels), which comply with
the Highway Law and the provisions of the present Regulation, and in which vehicle tolls are collected according to law upon approval.

Article 3

The people’s governments at all levels shall take positive measures to support and promote the development of highway industry. The
highway development shall focus on non-toll roads, and properly develop toll roads.

Article 4

No vehicle tolls may be charged on the road that is constructed through government investment or donation of social organizations
or individuals.

Article 5

No entity or individual may establish any booth or checkpoint on roads to collect vehicle tolls in violation of the Highway Law and
the provisions of the present Regulation.

Article 6

Any entity or individual shall have the right to refuse to pay vehicle tolls charged by any one who illegally sets up toll booth or
checkpoint on highways.

For the acts as illegally establishing tollbooths or checkpoints on highways, illegally collecting or using vehicle tolls, illegally
transferring the rights and interests in toll roads or illegally extending the time limit for toll collection, etc., any entity or
individual shall be enpost_titled to report to the departments of traffic, price or finance, etc. The department receiving such report
shall investigate into and handle it timely according to the division of functions. If it does not have the right to investigate
into and handle it, it shall transfer it immediately to the department that has such right. The department accepting the case shall
investigate into and handle it within 10 days from receipt of such report or the materials transferred.

Article 7

Upon approval, the business operator of any toll road shall have the right to collect vehicle tolls on vehicles passing through the
toll road according to law.

Vehicle tolls shall be exempted for the vehicles of troops and armed police troops, the police wagons with uniform marks which are
used for handling traffic accident, executing ordinary patrolling tasks or dealing with emergencies on toll roads under the jurisdiction
of a public security organ, and the vehicles used for execution of emergency rescue and relief tasks with the approval by the competent
communications department of the State Council and the people’s government of the province, autonomous region, and municipality directly
under the Central Government.

Vehicle tolls shall be exempted for combine harvesters and transportation combine harvesters (including rice transplanter) operating
across regions. No combine harvester may pass through freeways.

Article 8

No entity or individual may illegally interfere in the business management of any toll road in any form, or seize or embezzle vehicle
tolls collected by any business operator of any toll road according to law.

Chapter II Construction of Toll Roads and Setup of Toll Booths

Article 9

The construction of any toll road shall conform to the highway development plan of the state and the province, autonomous region,
and municipality directly under the Central Government, and be in accordance with the technical level and scale of the toll road
as prescribed by the present Regulation.

Article 10

The vehicle tolls for the road constructed by the competent communications department of the people’s government at or above the county
level through making use of loans or raising funds with compensation from enterprises or individuals (hereinafter referred to as
the roads whose loans are repaid by the government), road constructed with the investment of economic organizations both home and
abroad or whose toll rights on the road, with the loans of which being repaid by the government, are assigned in accordance with
the Highway Law (hereinafter referred to as the for-profit roads) may not be collected until it has been approved according to law.

Article 11

The principle of separating governmental functions from institution management shall be observed for the construction and management
of highways whose loans are repaid by the government, and a special non-profit corporate body shall be established according to law.

The competent communications department of any people’s government of the province, autonomous region, and municipality directly under
the Central Government may centralize the administration, grant and repayment of loans in respect to the roads within its own administrative
region whose loans are repaid by the government.

The for-profit road construction projects shall be announced to the general public, and the investors shall be chosen by way of bid
invitation or tendering.

The for-profit road shall be constructed, operated and managed by a legal person of road enterprise established according to law.

Article 12

The setup of tollbooths on toll roads shall be subject to the examination and approval of the people’s governments of the provinces,
autonomous regions, and municipalities directly under the Central Government in accordance with the following provisions:

1.

No tollbooth may be established on the main lane of any highway and other closed toll roads apart from at the entry and exit ends,
unless it is really necessary to set up tollbooths between provinces, autonomous regions, and municipalities directly under the Central
Government. And

2.

The space between two neighboring tollbooths shall be no less than 50 kilometers in the same main road of a non-closed toll road.

Article 13

Tolls shall be collected through computer network on highways and other closed toll roads, so as to reduce tollbooths and improve
traffic efficiency. The concrete measures for toll collection through computer network shall be formulated by the competent communications
department of the State Council together with the relevant departments of the State Council.

Article 14

The time limit for toll collection of any toll road shall be subject to the examination and approval of the people’s governments of
provinces, autonomous regions, and municipalities directly under the Central Government according to the following standards:

1.

The time limit for toll collection of the road whose loans are repaid by the government shall be determined in accordance with the
principle of loans being repaid by the tolls collected and funds raised with compensation being repaid by the tolls collected. The
maximum time limit may not exceed 15 years. The maximum time limit for toll collection of the road whose loans are repaid by the
governments of the provinces, autonomous regions, and municipalities directly under the Central Government in the middle and western
areas as determined by the state may not exceed 20 years. And

2.

The time limit for toll collection of for-profit roads shall be determined in light of the principle of redemption of investment with
reasonable returns. The maximum time limit may not exceed 25 years. The maximum time limit may not exceed 30 years for toll collection
of for-profit roads of the provinces, autonomous regions, and municipalities directly under the Central Government in the middle
and western areas as determined by the state.

Article 15

Hearings shall be conducted for charging standards of vehicle tolls in accordance with the price laws and administrative regulations,
and the examination and approval shall be conducted according to the following procedures:

1.

The charging standards for roads whose loans are repaid by the government, after being checked by the competent communications department
of the people’s government of the province, autonomous region, and municipality directly under the Central Government together with
the competent price department and finance department of the corresponding level, shall be subject to the examination and approval
of the corresponding people’s government; And

2.

The charging standard for for-profit roads, after being checked by the competent communications department of the people’s government
of the province, autonomous region, and municipality directly under the Central Government together with the competent price department
of the corresponding level, shall be subject to the examination and approval of the corresponding people’s government.

Article 16

The charging standard for vehicle tolls shall be computed and determined in light of the technical level of the road, total investment,
local price indexes, time limit for repayment of loans or funds raised with compensation, time limit for redemption of investment,
volume of traffic and other factors. For vehicles that transport fresh and life farm products in the green passages prescribed by
the state, the charging standard for vehicle tolls may be lowered properly or exempted.

In case of constructing facilities having no relation with the management of toll roads, or constructing facilities and service facilities
for managing toll roads exceeding the standards, the expenses may not be regarded as the factor for determination of the charging
standard.

If it is necessary to adjust the charging standard for vehicle tolls, it shall be handled according to the procedures as prescribed
in Article 15 of the present Regulation.

Article 17

As to the tollbooths of any toll road, the time limit for toll collection, charging standard for vehicle tolls or the adjustment plan
of charging standard, which are examined and approved according to the procedures as prescribed by the present Regulation, the department
in charge of examination and approval shall submit the relevant documents for archival purposes to the competent communications department
and price department of the State Council within 10 days from the date of examination and approval. If the roads are those whose
loans are repaid by the government, the relevant documents shall also be filed with the finance department of the State Council within
10 days from the date of examination and approval.

Article 18

The following technical level and scale shall be complied with for the construction of toll roads:

1.

For freeways, the consecutive mileage shall be more than 30 kilometers, excluding the freeways from the urban district to its airport.

2.

For arterial roads, the consecutive mileage shall be more than 50 kilometers. And

3.

For independent two-lane bridges or tunnels, the length shall be more than 800 meters; for independent four-lane bridges or tunnels,
the length shall be more than 500 meters.

No tolls shall be charged on roads whose technical level is two or less. But vehicle tolls may be collected upon approval according
to law on the secondary road whose consecutive mileage is more than 60 kilometers, and which is constructed by the provinces, autonomous
regions, and municipalities directly under the Central Government in the middle and western areas as determined by the state.

Chapter III Transfer of Rights and Interests in Toll Roads

Article 19

In case any rights and interests in any toll road are transferred according to the provisions of the present Regulation, it shall
be announced to the general public. The transfer shall be made in the way of bid invitation or tendering, and the business operators
shall be chosen fairly, justly and openly, and a transfer agreement shall be concluded in accordance with law.

Article 20

The rights and interests in a toll road shall include toll collection rights, advertisement operation rights, and service facilities
operation rights.

The legal rights and interests of investors shall be protected in accordance with law in the event of transferring the rights and
interests in any toll road.

Article 21

In case of transferring the toll collection rights of the rights and interests in the road whose loans are repaid by the government,
the transferor may apply for an extension of the time limit for toll collection, but the extension period shall not exceed five years.

The time limit for toll collection shall not be extended for transfer of toll collection rights of the rights and interests in for-profit
roads.

Article 22

Under any of the following circumstances, the toll collection rights of the rights and interests in a toll road may not be transferred:

1.

The independent two-lane bridge and tunnel whose length is less than 1,000 meters;

2.

Secondary roads; or

3.

The time for toll collection has exceeded two thirds of the approved time limit for toll collection.

Article 23

The income from transfer of rights and interests in the roads whose loans are repaid by the government shall be turned in to the treasury,
and shall be used for road construction apart from being used for repayment of loans and funds raised with compensation.

Article 24

The concrete measures for the transfer of the rights and interests in a toll road shall be formulated by the competent communications
department of the State Council together with the development and reform department and finance department of the State Council.

Chapter IV Management of Toll Roads

Article 25

A toll road shall be checked before acceptance in accordance with the relevant state provisions after the completion of its construction.
No vehicle tolls may be collected until the road is qualified upon acceptance inspection.

No tolls may be collected during the construction of a toll road.

Article 26

The business operator of a toll road shall make routine inspection and maintenance on the toll road and the facilities along it according
to the standard and criterions as prescribed by the state, so as to ensure that the toll road be in a good technical state, and provide
high quality services for vehicles and personnel passing through it.

For the maintenance of a toll road, the construction and completion thereof shall be strictly in compliance with the time limit for
the maintenance. No one may postpone the maintenance construction by exceeding the time limit, nor may the construction affect the
safe passage of vehicles.

Article 27

The business operator of a toll road shall set up a bulletin board on an eye-catching place of a toll booth, specifying the name of
the toll booth, department of examination and approval, toll collection entity, charging standard, fixed number of year for starting
and ending toll collection, and telephone number for supervision, and other contents, etc., so as to accept public supervision.

Article 28

The business operator of a toll road shall set up traffic signs and markings according to the standards as prescribed by the state
and in light of the traffic status, facilities along the roads, and etc.

The traffic signs and markings shall be clear, accurate and easy to identify. The important passage information shall be indicated
repeatedly.

Article 29

The set up of a toll plaza shall comply with the requirements for safe driving of vehicles; the number of toll plazas shall comply
with the requirements for rushing through of vehicles, and shall not result in traffic jam.

Article 30

The staffing of toll attendants of any tollbooth shall be in keeping with the number of toll plazas and the traffic flow rate, no
toll attendant may be increased at will.

The business operator of a toll road shall strengthen vocational training and education of professional ethics on toll attendants
of the tollbooth, the toll collectors shall be polite and provide services up to the standard.

Article 31

In case of road damage, construction or occurrence of a traffic accident and other circumstances that may influence the normal and
safe driving of vehicles, the business operator of a toll road shall set up safety prevention facilities on the scene, and give indication
on speed limit or warnings on the entry and exit of the toll road, or give a public notice by making use of the variable information
board along the toll road and other facilities. If it results in a traffic jam, the business operator shall report to the relevant
department and assist in diverting the flow of traffic.

In case of a serious damage of any road, or bad weather conditions or major traffic accident and other circumstances that seriously
affect the safe passage of vehicles, the public security organs shall take such traffic control measures as restricting the driving
speed and closing the road according to law and in light of the circumstances. The business operator of a toll road shall actively
cooperate with the public security organs and timely announce the relevant traffic control information to the vehicles passing through
the road.

Article 32

The business operator of any toll road shall issue toll notes to the users of the toll road when collecting vehicle tolls. The toll
notes of the roads whose loans are repaid by the government shall be made and printed uniformly by (or under the supervision of)
the finance department of the people’s government of the province, autonomous region, and municipality directly under the Central
Government. The toll notes of for-profit roads shall be made and printed uniformly by (or under the supervision of) the taxation
department of the people’s government of the province, autonomous region, and municipality directly under the Central Government.

Article 33

The business operator of any toll road shall have the right to refuse the driving through of any vehicle that refuses to pay, escapes
the payment, or pays vehicle tolls less than it should pay according to law, and requires it to replenish the vehicle tolls that
should be paid.

No one may purposely block toll plazas, rush out of the tollbooth by force, assault and batter management personnel of any toll road,
destroy toll facilities or undertake other activities that disturb the order of toll road management for the purpose of refusing
to pay, escaping the payment of, or paying less vehicle tolls than he should pay.

In case of occurrence of the aforesaid acts disturbing the business management order of any toll road, the business operators of the
toll road shall report to the public security organs timely, and the public security organs shall handle it in accordance with law.

Article 34

No vehicle driving on any toll road may be overloaded.

Once finding that any vehicle is overloaded, the business operator of the toll road shall report to the public security organ immediately,
and the public security organ shall handle it in accordance with law.

Article 35

No business operator of any toll road may have the following acts:

1.

Raising the charging standard of vehicle tolls without authorization;

2.

Collecting additional fees or collecting as agent any other fees besides the charging standard for vehicle tolls;

3.

Collecting by force or by other improper means vehicle tolls in a certain period per vehicle; or

4.

Not issuing toll note, or issuing toll note that is not made and printed by (or under the supervision of) the finance department and
taxation department of the people’s government of the province, autonomous region, and municipality directly under the Central Government
or issuing invalid overdue toll notes.

If there is any of the preceding acts, the vehicle driving through a toll road shall have the right to refuse the payment of vehicle
tolls.

Article 36

The income from vehicle tolls collected by the operators of any road whose loans are repaid by the government shall be deposited into
the special financial account in full, and the income management shall be strictly separated from expense management.

The vehicle tolls of the road whose loans are repaid by the government shall be used in full for repayment of loans and funds raised
with compensation except that the necessary overhead and maintenance fees shall be outlaid from the budget of vehicle tolls approved
by the finance department, and shall not be diverted for other purpose.

Article 37

In case the time limit for toll collection of any toll road expires, the toll collection shall be terminated.

In case the loans and the funds raised with compensation have been paid off before the end of the time limit for toll collection of
the road whose loans are repaid by the government, the toll collection shall be terminated.

In case toll collection is terminated in any toll road in accordance with the provisions of the preceding two paragraphs, the relevant
people’s government of the province, autonomous region, and municipality directly under the Central Government shall give a notice
to the general public, specifying the date for termination of toll collection, and accept social supervision.

Article 38

The competent communications department of the people’s government of any province, autonomous region, or municipality directly under
the Central Government shall make appraisal and acceptance check on any toll road six months before the termination of toll collection
of the toll road. If, after appraisal and acceptance check, the road has complied with the technical level and standard verified
at the time of obtaining the rights and interests in the road, the business operator of the toll road may go through formalities
for transfer of the road with the competent communications department in accordance with the relevant state provisions. If it does
not comply with the technical level and standard assessed at the time of obtaining the rights and interests in the toll road, the
business operator of the toll road shall make maintenance within the time limit as determined by the competent communications department,
and the formalities for transfer of the road cannot be handled as required until the requirements have been met.

Article 39

After toll collection is terminated in a toll road, the business operator of the toll road shall dismantle the toll facilities within
15 days from the date of termination of toll collection.

Article 40

No entity or individual may force any vehicle to drive through any toll road by means of closing or blocking non-toll roads or setting
up blocks on non-toll roads to collect tolls.

Article 41

The business operator of a toll road shall provide the statistical materials and the relevant conditions in time according to the
requirements of the competent communications department of the State Council and that of the people’s government of the province,
autonomous region, and municipality directly under the Central Government.

Article 42

The maintenance and virescence of a toll road, and the water and soil conservation and road affairs management within the land use
scope of the road, shall be implemented in accordance with the relevant provisions of the Highway Law.

Article 43

The competent communications department of the State Council and those of the people’s governments of the provinces, autonomous regions,
and municipalities directly under the Central Government shall conduct supervision over and inspection on toll roads, urge the business
operators of toll roads to fulfill duty of maintenance, virescence of toll roads and water and soil conservation within the land
use scope of the roads.

Article 44

The auditing organs shall strengthen audit supervision over toll roads in accordance with law, and make investigation into and deal
with illegal acts according to law.

Article 45

When conducting supervision over and inspection on the toll road according to law, no administrative law enforcement organ may charge
any fees from the business operator of any toll road.

Article 46

The people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government shall announce
to the public such information as the name of toll roads and tollbooths within their administrative districts, toll collection entities,
charging standard, and time limit for toll collection, etc. to accept social supervision.

Chapter V Legal Liabilities

Article 47

If anyone approves without authorization the construction of any toll road, tollbooth, time limit for toll collection, charging standards
for vehicle tolls, or transfer of rights and interests in any toll road in violation of the provisions of the present Regulation,
the people’s government of the province, autonomous region, and municipality directly under the Central Government shall order it/him
to make corrections, and impose such administrative punishments as recording a special demerit or even dismissing the responsible
person in charge and other directly liable personnel. If a crime is constituted, he shall be prosecuted for the criminal liabilities
according to law.

Article 48

If any local people’s government or the relevant department and any of their staff members illegally interferes with the business
management of any toll road in violation of the present Regulation, or seizes or embezzles vehicle tolls collected by the business
operator of the toll road, the upper level people’s government or the relevant department shall order it/him to stop the illegal
interference, return the vehicle tolls it/he has seized or embezzled, and give the responsible person in charge and other directly
liable personnel such administrative punishments as recording a special demerit or even dismissing him according to law. If a crime
is constituted, he shall be prosecuted for the criminal liabilities according to law.

Article 49

If any one sets up any tollbooth or checkpoint to collect vehicle tolls without authorization or fails to terminate the toll collection
that he/it should terminate in violation of the present Regulation, the competent communications department of the State Council
or that of the people’s government of the province, autonomous region, and municipality directly under the Central Government shall
ex officio order him/it to make corrections, and force him/it to dismantle the toll facilities. The illegal gains shall be confiscated
if any, and a fine of two times up to five times the illegal gains shall be imposed upon him/it. If there are illegal gains, a fine
of RMB 10,000 Yuan up to 50,000 Yuan shall be imposed. And if the responsible person in charge and other directly liable personnel
are state functionaries, they shall be given such administrative punishments as recording a special demerit or even dismissed.

Article 50

If any one violates the provisions of the present Regulation under any of the following circumstances, the competent communications
department of the State Council or that of the people’s government of the province, autonomous region, and municipality directly
under the Central Government shall ex officio order it/him to make corrections, and impose a fine of RMB 50,000 Yuan up to 200, 000
Yuan in light of the circumstances:

1.

The setup of any tollbooth does not comply with the standards or the position of the tollbooth is altered without authorization;

2.

Failing to make routine inspection and maintenance on any toll road and the facilities along it according to the standards and criterions
prescribed by the state;

3.

Failing to set up traffic signs and markings properly in accordance with the relevant state provisions;

4.

The setup of crossings does not comply with the requirements for safe driving of vehicles or the number of crossings does not comply
with the requirements for the rapid passing through of vehicles;

5.

Failing to set up safety and prevention facilities as required or to give indication or public notice when meeting such circumstances
as road damage, construction or occurrence of traffic accidents and other circumstances that may influence the normal and safe driving
of vehicles, or failing to divert the flow of traffic in time in case of a traffic jam; or

6.

Failing to announce timely the information on restricted speed or closing of toll roads that should be announced.

Article 51

If any business operator of any toll road fails to issue notes in violation of the present Regulation when collecting tolls, or issues
notes that are not made and printed by (or under the supervision of) the finance or taxation department of the people’s government
of the province, autonomous region, and municipality directly under the Central Government, or issues invalid overdue notes, the
department of finance or taxation shall order him/it to make corrections, and impose a fine of RMB 100,000 Yuan up to 500,000 Yuan
in light of the circumstances. If the responsible person in charge and other directly liable personnel are state functionaries, they
shall be given the administrative punishment of recording a special demerit or even dismissed. If a crime is constituted, they shall
be prosecuted for the criminal liabilities.

Article 52

If any manager of the road whose loans are repaid by the government fails to deposit the vehicle tolls in full in the special financial
account or fails to turn in the income gained from transfer of rights and interests in roads whose loans are repaid by the government
in full to the state treasury in violation of the present Regulation, the department of finance shall order the operator to deposit
or turn in and to supplement the amount due. The responsible person in charge and other directly liable personnel shall be given
the administrative punishment of recording a special demerit or even dismissed according to law.

In case the department of finance fails to have the vehicle tolls of the road whose loans are repaid by the government or the income
gained from transfer of the rights and interests in the road whose loans are repaid by the government used for repayment of loans
or funds raised with compensation, or diverts for other purposes the vehicle tolls or income from the transfer of rights and interests
in the road whose loans are repaid by the government, the people’s government of corresponding level shall order it/him to repay
the loan and the funds raised with compensation, or order it/him to return the diverted vehicle tolls and the income gained from
transfer of the rights and interests of the road whose loans are repaid by the government. And the responsible person in charge and
other directly liable personnel shall be given the administrative punishment of recording a special demerit or even dismissed. If
a crime is constituted, it/he shall be prosecuted for the criminal liabilities according to law.

Article 53

If, after the termination of toll collection of any toll road, the business operator of the toll road fails to dismantle toll facilities
in time in violation of the present Regulation, the competent communications department of the people’s government of the province,
autonomous region, and municipality directly under the Central G