|
the State Council
Order of the State Council of the People’s Republic of China
No.443
The Regulations on Direct Selling Administration, which were adopted at the 101st executive meeting of the State Council on August
10, 2005, are hereby promulgated, and shall go into effect as of December 1st, 2005.
Premier of the State Council Wen Jiabao
August 23rd, 2005
Regulations on Direct Selling Administration
Chapter I General Provisions
Article 1
With a view to regulating direct selling acts, strengthening supervision over direct selling activities, preventing fraud and protecting
the legitimate rights and interests of consumers and public interests, the present Regulations are formulated.
Article 2
The present Regulations shall be subject to the direct selling activities undertaken within the territory of the People’s Republic
of China.
The scope of direct selling products shall be determined and promulgated by the competent department of commerce of the State Council
jointly with the administrative department of industry and commerce of the State Council on the basis of the development of the direct
selling industry and the demands of consumers.
Article 3
The term “direct selling” as mentioned in the present Regulations refers to a type of business mode, in which direct selling companies
recruit door-to-door salesmen to sell products directly to ultimate consumers(hereinafter referred to as consumers)outside the companies’
fixed places of business.
The term “direct selling companies” as mentioned in the present Regulations refers to the companies which, upon approval, sell products
by way of direct selling according to the provisions of the present Regulations.
The term “door-to-door salesmen” as mentioned in the present Regulations refers to any personnel who sell products directly to consumers
outside the fixed places of business.
Article 4
Any company that is established within the territory of the People’s Republic of China (hereinafter referred to as the company) may,
in accordance with the provisions of the present Regulations, apply for establishing a direct selling company that sells the products
produced by itself or the products produced by its parent company or holding company by way of direct selling.
A direct selling company may obtain the trade right and distribution right according to law.
Article 5
When undertaking direct selling activities, no direct selling company or its door-to-door salesman may conduct any fraudulent or misleading
acts and other drumbeating and sales promotion acts.
Article 6
The competent commerce department and the administrative department of industry and commerce of the State Council shall, in line with
the division of their responsibilities and the provisions of the present Regulations, be responsible for conducting supervision and
administration on direct selling companies and door-to-door salesmen as well as their direct selling activities.
Chapter II Establishment and Alteration of Direct Selling Companies and Their Branches
Article 7
Anyone applying for establishing a direct selling company shall satisfy the following requirements:
1.
The investor shall have good commercial reputation, and have no records of serious illegal operation during the past five years before
filing the application; in the case of a foreign investor, it shall, in addition, have undertaken direct selling business outside
China for at least three years;
2.
The paid-in registered capital shall be no less than RMB 80 million Yuan;
3.
The deposits shall have been fully paid in the designated bank in accordance with the provisions of the present Regulation; and
4.
The system of information reporting and disclosure shall have been established as required.
Article 8
Anyone applying for establishing a direct selling company shall fill out the application form and provide the following application
documents and materials:
1.
the certification documents conforming to the conditions as provided for in Article 7 of the present Regulation;
2.
articles of association of the company; in the case of establishment of a Sino-foreign joint venture or cooperative company, the contract
of the joint venture or cooperative company shall be provided as well;
3.
the report on market plan, including the scheme for service networks in the area where direct selling business is conducted as recognized
by the people’s governments at or above the county level, which is drawn up according to the provisions of Article 10 of the present
Regulations;
4.
descriptions of products up to the national standards;
5.
model sales contract to be signed with the door-to-door salesman;
6.
report on the verification of capital as issued by an accounting firm; and
7.
agreement concluded between the company and the designated bank on using the deposit according to the present Regulations.
Article 9
An applicant shall, through the competent commerce department at the province, autonomous region, and municipality directly under
the Central Government at its locality, file an application with the competent commerce department of the State Council. The competent
commerce department at the province, autonomous region, and municipality directly under the Central Government shall, within 7 days
as of the day of receipt of the application documents and materials, submit the application documents and materials to the competent
commerce department of the State Council. The competent commerce department of the State Council shall, within 90 days as of the
day of receipt of all the application documents and materials, and upon the opinions solicited from the administrative department
of industry and commerce of the State Council, make a decision on whether or not to approve it. And if an approval is granted, it
shall issue the direct selling license.
An applicant shall, upon the strength of the direct selling license issued by the competent commerce department of the State Council,
apply for registration of alteration to the administrative department of industry and commerce according to law. The competent commerce
department of the State Council shall, when carrying out examination and issuing the direct selling license, take into account such
factors as national security, public interests, and the development of the direct selling sector, etc.
Article 10
When undertaking direct selling business, a direct selling company shall, in the administrative regions of the provinces, autonomous
regions, and municipalities directly under the Central Government where it plans to undertake direct selling business, establish
branches(hereinafter referred to as branches), which shall be responsible for the direct selling business within their regions respectively
.
A direct selling company shall, within the area where it undertakes direct selling business, establish service networks which may
facilitate and satisfy consumers and door-to-door salesmen to know about the price of products and returning and changing of products
and for the company to provide other services. The establishment of such service networks shall satisfy the requirements of the local
people’s governments at or above the county level.
When applying for establishment of branches, a direct selling company shall provide the certification documents and materials complying
with the provisions of the preceding paragraph, and shall file an application according to the procedures as provided for in paragraph
one of Article 9 of the present Regulations. After approval is granted to the application, the company shall register with the administrative
department of industry and commerce according to law.
Article 11
In the case of any major alteration in the contents as listed in Article 8 of the present Regulations, a direct selling company shall,
in light of the procedures as provided for in paragraph one of Article 9 of the present Regulations, report it to and seek approval
from the competent commerce department of the State Council.
Article 12
The competent commerce department of the State Council shall promulgate on the government website the name list of the direct selling
companies and their branches, and update it in a timely manner.
Chapter III Recruiting and Training of Door-to-door salesmen
Article 13
A direct selling company and its branches may recruit door-to-door salesmen. Any other entity or individual is not allowed to recruit
any door-to-door salesman.
The lawful selling activities of door-to-door salesmen may not be investigated and punished on the ground of unlicensed business.
Article 14
No direct selling company or any of its branches may promulgate any advertisements drumbeating the remunerations for its door-to-door
salesmen, nor may it have the payment of fees or purchase of commodities as the conditions for becoming a door-to-door salesman thereof.
Article 15
No direct selling company or any of its branches may recruit the following personnel as a door-to-door salesman:
1.
person under the age of 18;
2.
person without capacity or with limited capacity for civil conduct;
3.
full-time school students;
4.
teachers, medical personnel, public servants and soldiers in active service;
5.
formal employees of the direct selling company;
6.
overseas personnel; and
7.
personnel as prohibited from taking part-time jobs by laws or administrative regulations.
Article 16
A direct selling company and its branches shall conclude a sales contract with any door-to-door salesman it recruits, and shall ensure
that its door-to-door salesmen carry out direct selling business only in the province, autonomous region, and municipality directly
under the Central Government where one of its branches has established service location. Any person who fails to conclude a sales
contract with a direct selling company or any of its branches may not carry out direct selling business by any way.
Article 17
A door-to-door salesman may, within 60 days as of the day of conclusion of the contract, rescind a sales contract at any time; after
the 60 days as of the day of conclusion of the contract, it shall notify the direct selling company 15 days before rescinding the
sales contract.
Article 18
A direct selling company shall be responsible for organizing the vocational training and examination of the door-to-door salesmen
it recruits, and shall issue the certificates of door-to-door salesman to the door-to-door salesmen who have passed the examination.
Anyone who fails to obtain the certificate of door-to-door salesman may not undertake direct selling activities.
No direct selling company may charge the door-to-door salesman any fees for the vocational training and examination.
No entity or individual outside a direct selling company is allowed to organize the vocational training of door-to-door salesmen in
any name.
Article 19
The teaching staff who give vocational training to door-to-door salesmen shall be the formal employees of the direct selling company,
and shall satisfy the following requirements:
1.
Having worked in the companies for more than one year;
2.
Having received graduate or post-graduate education and having the relevant professional knowledge of law and marketing;
3.
Having no records of being punishment for deliberate crimes; and
4.
Having no records of major illegal operation.
A direct selling company shall issue the certificates of direct selling trainer to the teaching staff that satisfy the provisions
of the preceding paragraph, and shall report the name list of the personnel who have obtained the certificate of direct selling trainer
to the competent commerce department of the State Council for record. The said department shall promulgate on the government website
the name list of the personnel who have obtained the certificate of direct selling trainer.
No foreigner may undertake the vocational training of door-to-door salesmen.
Article 20
The certificate of door-to-door salesman and the certificate of direct selling trainer issued by a direct selling company shall be
printed in the format as prescribed by the competent commerce department of the State Council.
Article 21
A direct selling company shall be responsible for the legitimacy of the vocational training of door-to-door salesmen, the training
order and the safety of the training places.
A direct selling company and its direct selling trainers shall be responsible for the legitimacy of the teaching contents of vocational
training of door-to-door salesmen.
The concrete measures for the administration of vocational training of door-to-door salesmen shall be separately formulated by the
competent commerce department of the State Council and the administrative department of industry and commerce of the State Council
in conjunction with the relevant departments.
Chapter IV Direct Selling Activities
Article 22
When selling products to consumers, a door-to-door salesman shall comply with the following provisions:
1.
showing the certificate of door-to-door salesman and the sales contract;
2.
not entering into the abode of any consumer to sell products compulsively without the consent of the consumer, stopping promotion
activities immediately and leaving the consumer’s abode if the consumer requires him to do so;
3.
giving consumers detailed account of the company’s system of returning goods before the bargain is struck; and
4.
providing consumers with invoices as well as the sales voucher containing such contents as the system of returning goods, the address
of the local service location of the direct selling company and the telephone number, etc. issued by the direct selling company after
the bargain is struck.
Article 23
A direct selling company shall clearly mark the product price on the direct selling product, and the price shall be consistent with
the price of the product as showed at the service website. A door-to-door salesman shall sell direct selling products to consumers
at the marked price.
Article 24
A direct selling company shall pay remuneration to its door-to-door salesmen at least on a monthly basis. The remunerations paid to
any door-to-door salesman by a direct selling company shall be calculated on the basis of the income gained from selling products
directly to consumers by the door-to-door salesman himself/herself, and the total remuneration (including commission, bonus, various
awards and other economic benefits, and etc.) may not exceed 30% of the income gained from selling products directly to consumers
by the door-to-door salesman himself/herself.
Article 25
A direct selling company shall establish and put into practice the sound system of changing and returning of goods.
Any consumer may, within 30 days as of the day of purchasing any direct selling product, upon the strength of the invoice or the sales
voucher issued by the direct selling company , change or return the product to the direct selling company or its branches, or the
service website at his locality or the door-to-door salesman who sells the product, on the condition that the product remains unopened.
The direct selling company and its branches, the service website at his locality or the door-to-door salesman shall, within 7 days
as of the day when the consumer requests for changing or returning the product, handle the change or return of the product according
to the price as made out in the invoice or the sales voucher.
A door-to-door salesman shall, within 30 days as of the day of purchasing the direct selling product, upon the strength of the invoice
or the sales voucher issued by the direct selling company, change or return the product to the direct selling company or its branches,
or the service website at his locality, on the condition that the product remains unopened. The direct selling company and its branches,
or the service website at his locality shall, within 7 days as of the day when the door-to-door salesman requests for changing or
returning the product, handle the changing or returning of the product according to the price as made out in the invoice or the sales
voucher.
Except for the circumstances as prescribed in the two preceding paragraphs, where a consumer or door-to-door salesman requests changing
or returning any product, the direct selling company or its branches or the service website at his locality and the door-to-door
salesman shall, according to the provisions of the relevant laws and regulations or the stipulations of the contract, change or return
the product.
Article 26
If any dispute arises from changing or returning goods between any direct selling company and any of its door-to-door salesman or
between any direct selling company or its door-to-door salesmen and any consumer, the former shall bear the burden of proof.
Article 27
A direct selling company shall bear the joint responsibility for the direct selling acts of any of its door-to-door salesmen, unless
it can prove that the direct selling act of the door-to-door salesman has nothing to do with the company.
Article 28
A direct selling company shall, in accordance with the provisions of the competent commerce department of the State Council and the
administrative department of industry and commerce of the State Council, establish and put into practice a sound information reporting
and disclosure system.
The provisions on the contents and ways of the information reporting and disclosure of any direct selling company and the relevant
requirements shall be separately prescribed by the competent commerce department of the State Council and the administrative department
of industry and commerce of the State Council.
Chapter V Deposit
Article 29
A direct selling company shall open a special account in the bank designated by the competent commerce department of the State Council
together with the administrative department of industry and commerce of the State Council, and put a deposit into it.
The deposit shall be RMB 20 million Yuan at the time when a direct selling company is established. After the direct selling company
starts operation, the deposit shall be adjusted on a monthly basis, and the amount shall remain at 15% of its sales income from direct
selling products of the previous month, but may not exceed RMB 0.1 billion Yuan at the maximum and not less than RMB 20 million Yuan
at the minimum. The interest of the deposit shall be owned by the direct selling company.
Article 30
In the case of any of the following circumstances, the deposit may be used upon the decision jointly made by the competent commerce
department of the State Council and the administrative department of industry and commerce of the State Council:
1.
A direct selling company fails to pay remuneration to its door-to-door salesmen without justifiable reasons, or fails to pay the money
for returned goods to door-to-door salesmen and consumers;
2.
A direct selling company involves itself in such circumstances as suspension of business, merger, dissolution, transfer and bankruptcy
and etc., and lacks the ability to pay remuneration to its door-to-door salesmen or to pay the refunds to door-to-door salesmen or
consumers; or
3.
A direct selling company shall make compensation for any damage to consumers due to the quality of its direct selling products under
the law, but it refuses to do so without justifiable reasons or lack the ability to make compensation.
Article 31
Where any deposit is used according to the provisions of Article 30 of the present Regulations, the direct selling company shall,
within one month, replenish the deposit to the level as prescribed in paragraph two of Article 29 of the present Regulations.
Article 32
No direct selling company is allowed to offer the deposit as a guarantee or use it to discharge debts in violation of the present
Regulations.
Article 33
Where a direct selling company no longer undertakes any direct selling business, it may withdraw the deposit from the aforesaid bank
upon the strength of the credence issued by the competent commerce department of the State Council and the administrative department
of industry and commerce of the State Council.
Article 34
The competent commerce department of the State Council and the administrative department of industry and commerce of the State Council
shall be jointly responsible for the routine supervision on the aforesaid deposit.
The specific measures for payment and use of the deposit shall be separately formulated by the competent commerce department of the
State Council and the administrative department of industry and commerce of the State Council in conjunction with the relevant departments.
Chapter VI Supervision and Administration
Article 35
The administrative department of industry and commerce shall be responsible for the routine supervision and administration on direct
selling companies and door-to-door salesmen and their direct selling activities. The administrative department of industry and commerce
may conduct on-site inspection by taking the following measures:
1.
conducting inspection by entering into the relevant companies;
2.
requiring the relevant enterprises to provide the relevant documents, materials and certification documents;
3.
inquiring of the parties concerned, the interested parties and other relevant personnel about the relevant issues, and requiring them
to provide the relevant materials;
4.
consulting, copying, seizing and detaining the relevant materials and illegal property of the relevant enterprises that are related
to direct selling activities; and
5.
checking up the certificates of direct selling trainers and the certificates of door-to-door salesmen and other certificates of the
relevant personnel.
When the administrative department of industry and commerce carries out on-site inspection pursuant to the preceding provisions, there
shall be no less than two inspectors who shall show lawful certificates. The implementation of seizure or detention shall be subject
to the approval of the person-in-charge of the administrative department of industry and commerce at or above the county level.
Article 36
When conducting routine supervision and administration, in case the administrative department of industry and commerce discovers that
the relevant enterprises commit any act suspected of violating the present Regulations, it may, upon the approval of the person-in-charge
of the administrative department of industry and commerce at or above the county level, order them to suspend their business operations.
Article 37
The administrative department of industry and commerce shall set up and publicize the informants’ hot-line, and accept the report
and complaints on acts that violate the present Regulations, and make investigation on and handle them in a timely manner.
The administrative department of industry and commerce shall keep secret of the informants, and shall, according to the relevant provisions
of the State, grant awards to those meritorious informants.
Chapter VII Legal Liabilities
Article 38
Where the relevant departments and their staff members that carry out administration and supervision on direct selling companies and
door-to-door salesmen and their direct selling activities, grant license to any application that fails to comply with the conditions
as prescribed in the present Regulations, or do not perform the duty of supervision and administration in line with the provisions
of the present Regulations, the person-in-charge who is directly responsible and other personnel held directly liable shall be given
administrative sanctions according to law. If a crime is constituted, they shall be investigated for criminal liabilities according
to law. The license granted to any application that does not comply with the conditions as prescribed in the present Regulations
shall be revoked by the relevant department that has made the decision on granting the license.
Article 39
Where a direct selling company violates the provisions of Articles 9 and 10 of the present Regulations by undertaking direct selling
activity without approval, it shall be ordered by the administrative department of industry and commerce to make corrections, and
shall be subject to the confiscation of its direct selling products and illegal sales income as well as a fine of not less than 50,000
Yuan but not more than 300,000 Yuan. If the circumstances are serious, it shall be imposed upon a fine of not less than 300,000 but
not more than 500,000 Yuan, and shall be banned according to law. If a crime is constituted, it shall be investigated for criminal
liabilities according to law.
Article 40
Where an applicant has obtained the licenses as established in Articles 9 and 10 of the present Regulations by cheating, bribery or
any other foul means, the administrative department of industry and commerce shall confiscate its direct selling products and illegal
sales revenue, and impose upon the applicant a fine of not less than 50,000 Yuan but not more than 300,000Yuan. And the competent
commerce department of the State Council shall revoke its corresponding licenses, and the said applicant shall be prohibited from
filing an application again. If the circumstances are serious, it shall be imposed a fine of not less than 300,000 Yuan but not more
than 500,000 Yuan, and shall be banned according to law. If a crime is constituted, it shall be investigated for criminal liabilities
according to law.
Article 41
Where a direct selling company violates the provisions of Article 11 of the present Regulations, the administrative department of
industry and commerce shall order it to make corrections, and impose upon it a fine of not less than 30,000 Yuan but not more than
300,000 Yuan. Where a direct selling company no longer satisfies the conditions for licensing of direct selling, its direct selling
license shall be revoked by the competent commerce department of the State Council.
Article 42
Where a direct selling company violates regulations by undertaking direct selling business beyond the scope of direct selling products,
the administrative department of industry and commerce shall order it to make corrections, confiscate its direct selling products
and illegal sales revenue, and impose upon it a fine of not less than 50,000 Yuan but not more than 300,000 Yuan. If the circumstances
are serious, it shall be imposed a fine of not less than 300,000 Yuan but not more than 500,000 Yuan. And the administrative department
of industry and commerce shall revoke the business license of the branch of any direct selling company which has illegal operation
acts, till the direct selling license of the direct selling company is revoked by the competent commerce department of the State
Council.
Article 43
Where a direct selling company or any of its door-to-door salesmen violates the provisions of the present Regulations by committing
fraudulent, misleading and other drumbeating and sales promotion acts, the direct selling company shall be imposed a fine of not
less than 30,000 Yuan but not more than 100,000 Yuan by the administrative department of industry and commerce; if the circumstances
are serious, it shall be imposed a fine of not less than 100,000 Yuan but not more than 300,000 Yuan. And the administrative department
of industry and commerce shall revoke the business license of the branch of any direct selling company which has illegal operation
acts, till the direct selling license of the direct selling company is revoked by the competent commerce department of the State
Council. The door-to-door salesman shall be imposed a fine of less than 50,000 Yuan by the administrative department of industry
and commerce; if the circumstances are serious, the direct selling company shall be ordered to revoke the qualification of the said
door-to-door salesman.
Article 44
Where a direct selling company or any of its branches recruits door-to-door salesmen in violation of the present Regulations, it shall
be ordered to make corrections by the administrative department of industry and commerce, and imposed a fine of not less than 30,000
Yuan but not more than 100,000 Yuan. If the circumstances are serious, it shall be imposed a fine of not less than 100,000 Yuan but
not more than 300,000 Yuan. And the administrative department of industry and commerce shall revoke the business license of the branch
of the direct selling company that has illegal operation acts, till the direct selling license of the direct selling company is revoked
by the competent commerce department of the State Council.
Article 45
Anyone, who violates the provisions of the present Regulations and undertakes direct selling activity without obtaining the certificate
of door-to-door salesman, shall be ordered by the administrative department of industry and commerce to make corrections, and shall
be subject to the confiscation of its direct selling products and illegal sales income as well as a fine of less than 20,000 Yuan.
If the circumstances are serious, he shall be imposed a fine of not less than 20,000 Yuan but not more than 200,000 Yuan.
Article 46
Any direct selling company that carries out the vocational training of door-to-door salesmen in violation of the provisions of the
present Regulations shall be ordered by the administrative department of industry and commerce to make corrections, and shall be
subject to the confiscation of its illegal gains as well as a fine of not less than 30,000 Yuan but not more than 100,000 Yuan. If
the circumstances are serious, it shall be imposed a fine of not less than 100,000 Yuan but not more than 300,000 Yuan. And the administrative
department of industry and commerce shall revoke the business license of the branch of the direct selling company that has illegal
business acts till the direct selling license of the direct selling company is revoked by the competent commerce department of the
State Council. The teaching staff members shall be imposed a fine of less than 50,000 Yuan, and if they are the direct selling trainers,
the direct selling company shall be ordered to revoke their qualifications as a direct selling trainer.
If an entity or individual outside a direct selling company organizes the vocational training of door-to-door salesmen, the administrative
department of industry and commerce shall order it/him to make corrections, confiscate its/his illegal gains, and impose upon it/him
a fine of not less than 20,000 Yuan but not more than 200,000 Yuan.
Article 47
Where a door-to-door salesman violates the provisions of Article 22 of the present Regulations, the administrative department of
industry and commerce shall confiscate his/her illegal sales income, and impose upon him/her a fine of less than 50,000 Yuan. If
the circumstances are serious, the direct selling company concerned shall be ordered to revoke his/her qualification as a door-to-door
salesman, and shall be imposed upon a fine of not less than 10,000 Yuan but not more than 100,000 Yuan.
Article 48
Any direct sellin
|
the Ministry of Commerce
Order of the Ministry of Commerce of the People’s Republic of China
No. 16
The Policies for Automobile Trade, which were adopted at the executive meeting of the Ministry of Commerce upon deliberation, are
hereby promulgated and shall be put in force as of the day of promulgation.
Minister of the Ministry of Commerce Bo Xilai
August 10, 2005
Policies for Automobile Trade
Chapter I General Provisions
Article 1
In order to establish a uniform, open, competitive and orderly automobile market, safeguard the legitimate rights and interests of
automobile consumers, advance the sound development of our automobile industry, promote consumption and expand domestic demand, the
present Policies are specially formulated.
Article 2
The state encourages the development of automobile trade and guides the automobile trade industry to work out an overall plan, to
layout in a reasonable way, to adjust the structure to actively employ modern information technologies, logistic technologies and
advanced operational mode, to promote the electronic commerce, to advance the automobile trade and to realize an intensified, scale,
brand and diversified business operation.
Article 3
In order to create a fair and competitive automobile market environment, bring into play the basic role of the market in resource
allocation, we shall uphold the socialist market economy law, further introduce the competition mechanism, further open up both internally
and externally, break regional blockade and promote the free circulation of automobile products throughout the country.
Article 4
We shall guide automobile trade enterprises to carry out their operations on a legal and credit base, to guarantee the quality of
both products and services and to provide satisfactory services to consumers.
Article 5
In order to elevate the level of our automobile trade as a whole, the state encourages those overseas investors with comparatively
strong economic strength, advanced experience of commercial operations, marketing technologies as well as sound international sales
network to invest in the field of automobile trade.
Article 6
We shall bring into full play the functions of industrial organizations, accreditation organizations and inspection institutions as
a bridge or link, establish and improve an independent, impartial and standardized intermediary service system concerning appraisal,
consultation, accreditation and inspection, and actively advance the marketization process of automobile trade.
Article 7
We shall actively establish and improve the pertinent regulations and systems, accelerate the legalization construction of automobile
trade. The establishment of an automobile trade enterprise shall meet the relevant requirements as prescribed by laws or administrative
regulations. The competent department of commerce of the State Council shall, in conjunction with other relevant departments, deliberate
and formulate and improve the administrative measures, regulations and standards in terms of automobile brand sale, circulation of
second-hand automobiles, circulation of automobile parts and reclamation of discarded automobiles so as to maintain fair competition
in the market.
Chapter II Police Target
Article 8
By way of implementing the present Policies, we shall basically realize the brand sale and services of automobiles, form a circulation
layout of second-hand automobiles with diversified operational subjects and modes, and build up the functions and the system concerning
the sale and after-service of automobiles and second-hand automobiles so that the source, quality and price of automobile parts are
open and transparent, the counterfeit, false and low-quality parts are effectively cracked down, the reclamation and dismantlement
rate of discarded automobiles are increased significantly and a favorable market order of automobile trade takes shape.
Article 9
By 2010, a modern automobile trade system shall be established which is brought in line with the international practice and has its
competitive advantage, and we will have a group of automobile trade enterprises with their own strength, and achieve a considerable
increase in trade volume, a noticeable progress in the level of trade , and a remarkable elevation in the capability of foreign
trade, a coordinated development between the automobile trade and the automobile industry being realized.
Chapter III Sale of Automobiles
Article 10
Automobile manufacturers both home and abroad that sell self-produced automobiles within the territory of China shall establish and
improve their brand sale and service system of automobiles as soon as possible so as to ensure that consumers may receive good service
in the process of purchase and use as well as to maintain the legitimate rights and interests thereof. An automobile manufacturer
may, according to the relevant regulations of the state, make investment by itself or authorize its general distributor to establish
a brand sale and service system.
Article 11
The brand sale and service of automobiles shall be implemented. From April 1, 2005, the brand sale and service shall be implemented
for passenger vehicles. From December 1, 2006, the brand sale and services shall be implemented for all automobiles, with the exception
of special purpose vehicles.
Anyone who engages in the automobile brand sale shall have acquired the authorization from an automobile manufacturer or an authorized
general distributor thereof. The dealers of automobiles (including second-hand automobiles) shall conduct their automobile business
within the scope as verified by the administrative department of industry and commerce.
Article 12
An automobile supplier shall work out a plan for the brand sale and service network of automobiles. In order to safeguard the interest
of consumers, the automobile brand sale network may not be more than 150 kilometers away from its service location that supply automobile
parts and provide after-service.
Article 13
An automobile supplier shall strengthen the management of brand sale and service networks, regulate the sale and service and shall,
after the administrative department of industry and commerce of the State Council puts it on record and promulgate it to the general
public, inform the general public on a periodic basis the name list of the enterprises that engage in the brand sale and service
of automobiles and whose authorization has been granted or abolished, and may not provide any automobile resources to a dealer that
has not been authorized or doesn’t satisfy the relevant conditions of business operations. An automobile supplier shall be responsible
for informing the general public in a timely manner of the automobile type whose production has been ceased and take active measures
to ensure the parts supply within a reasonable time limit.
Article 14
An automobile supplier or dealer shall specify each other’s the rights and obligations by concluding a written contract. An automobile
supplier shall offer guidance and technical support to dealers, may not require a dealer to accept an unequal term for cooperation
or determine the sales quantity or carry out any tie-in sale in a compulsive manner, or terminate the cooperative relation with its
dealer at will.
Article 15
An automobile supplier shall, in accordance with the relevant laws and regulations of the state as well as its promise as made to
consumers, perform the obligation of guaranteeing the quality of automobiles and providing after service.
An automobile dealer shall clearly indicate to consumers in its business place the quality guaranty and after service of automobiles
as promised by the relevant automobile supplier and shall, under the stipulation of the authorization contract and the requirements
of service standards, provide the relevant after service.
No automobile supplier or dealer may supply or sell any automobile that does not comply with the state security technical standards
of automobiles and fails to obtain the compulsory product accreditation of the state and be included in the Announcement of Motor
Automobile Manufacturer and Products. Any imported automobile that fails to pass the inspection as prescribed by the Law of the People’s
Republic of China on Import and Export Commodity Inspection and the Rules for Implementation thereof may not be sold or used.
Chapter IV Circulation of Second-hand Automobiles
Article 16
The state encourages the circulation of second-hand automobiles. We shall establish a competition mechanism, open up the circulation
channels, support competent operational subjects, such as automobile brand dealers, to undertake the second-hand automobile business
and establish branches or sub-branches in different places in the form of chain operation.
Article 17
We shall actively create necessary conditions to simplify the procedures for the transaction and transfer of second-hand automobiles,
improve the efficiency of answering any inquiry on the legality and security of automobiles, lower transaction costs, and standardize
the transaction invoice uniformly; we shall intensify the quality management of second-hand automobiles and set an impetus to the
dealers of second-hand automobiles to provide high-quality after service.
Article 18
We shall accelerate the cultivation and buildup of the second-hand automobile market, guide the change in the concept on the second-hand
automobile market, intensify the market administration, and expand the service functions of the market.
Article 19
A voluntary appraisal system of second-hand automobiles shall be adopted. The transaction value of a second-hand automobile shall
be determined through the negotiation of both parties unless it belongs to the state-owned asset. A party concerned may, on a voluntary
basis, entrust a qualified appraisal and evaluation organization of second-hand automobiles to carry out an appraisal for reference.
No entity or department may overtly force them to conduct an appraisal on a traded automobile or do so in any disguised form except
under the provisions of laws or administrative regulations.
Article 20
We shall actively regulate the appraisal and evaluation of second-hand automobiles. An appraisal and evaluation organization shall,
upholding the principle of “being objective, authentic, impartial and open”, carry out the appraisal and evaluation of second-hand
automobiles, produce relevant reports on the appraisal and evaluation of second-hand automobiles and clarify the technical condition
thereof (including such contents as whether the automobile is involved in an traffic accident) according to the relevant laws and
regulations of the state.
Article 21
Where an enterprise that engages in the business operation or auction of second-hand automobiles sells or auctions a second-hand automobile,
it shall provide the authentic information for the buying party, and may not conceal any facts or conduct any fraudulent practice.
An automobile as sold or auctioned shall have the motor vehicle plate, the Registration Certificate of Motor Automobiles, the Operational
License of Motor Automobiles, the valid mark of passing the security technical examination, the policy of insurance of the automobile,
and the proof of payment of relevant taxes and fees.
Article 22
Where an enterprise that engages in the business operations of second-hand automobiles sells a second-hand automobile, it shall make
a promise regarding the quality guaranty and after service to the buying party. Within the warranty period, an automobile supplier
shall, in accordance with the relevant laws and regulations of the state and the promise as made to consumers, commit itself to quality
assurance and after service of automobiles.
Article 23
The business operations concerning auction or appraisal and evaluation of second-hand automobiles shall be subject to the examination
and approval of the administrative department of commerce at the provincial level.
Chapter V Circulation of Automobile Parts
Article 24
The state encourages the circulation of automobile components to develop into large scale, good brand and networked circulation by
way of franchise and chain operation, supports the component circulation enterprises to carry out integration so as to realize the
structural upgrading and improve the economy of scale as well as service quality.
Article 25
A supplier or dealer of automobiles or automobile components shall intensify the quality management and improve the product quality
as well as service quality.
No supplier or dealer of automobiles or automobile components may supply or sell any automobile component that fails to comply with
the relevant laws, administrative regulations, compulsory standards and the requirements of compulsory product certification of the
state.
Article 26
A supplier of automobiles or automobile parts shall inform the general public of the name list of franchised dealers of automobile
parts whose accreditation has been granted or abolished on a periodic basis.
A dealer of automobile parts shall give clear indications of the names, manufacturers and prices of the automobile parts and any other
automobile articles as sold and shall indicate the parts from original plant, the parts that have been accredited by automobile manufacturer
and the reclaimed articles of discarded automobiles as well as renovated components in a separate way. The product identification
of automobile parts shall meet the requirements of the Law on Product Quality.
Article 27
We shall accelerate the circulation of reclaimed articles of discarded automobiles. For the parts that have been dismantled by an
enterprise that engages in the reclamation and dismantlement of discarded automobiles under the relevant provisions and may be sold
out, the sign “reclaimed articles of discarded automobiles” shall be noticeably indicated on the parts.
Chapter VI Discarding of Automobiles and Reclamation of Discarded Automobiles
Article 28
The state adopts a compulsory automobile discarding system., we shall, in light of the different security technical states and purposes
of automobiles, amend the present Automobile Discarding Standards in effect and formulate different compulsory discarding standards
accordingly.
Article 29
An owner of a discarded automobile shall sell or turn over the discarded automobile timely to an enterprise as qualified to engaging
in the reclamation and dismantlement of discarded automobiles.
Article 30
The local administrative department of commerce shall, in accordance with the relevant requirements of the Measures for the Administration
of Discarded Automobile Reclamation (Order No. 307 of the State Council), work out an overall plan as well as a rational layout for
the discarded automobile reclamation and dismantlement industry.
Anyone who engages in the business operations of reclamation and dismantlement of discarded automobiles shall have the relevant qualifications
as prescribed by the relevant laws and regulations. The administrative department of commerce of the State Council shall inform the
general public of those qualified enterprises that engage in the reclamation and dismantlement of discarded automobiles.
Article 31
An enterprise that engages in the business operations of reclamation and dismantlement of discarded automobiles shall, in strict accordance
with the relevant laws and regulations of the state, carry out its business operations and dismantle the discarded automobiles as
reclaimed in a timely manner. The “five assemblies” of engine, front and rear axles, gearshift, steering gear and frame as dismantled
shall be used as waste iron or steel, which may be sold to an iron and steel works as the raw materials for smelting.
Article 32
The administrative departments of commerce at all levels shall, in conjunction with the relevant public security organs, establish
an information exchange system regarding the management of discarded automobile reclamation, realizing the real-time control in the
reclamation process of discarded automobiles so as to prevent the discarded automobiles or the “five assemblies” from flowing into
the market.
Article 33
In order to use the resources in a reasonable and effective manner, the state shall formulate relevant measures for the administration
of reclamation and utilization of discarded automobiles.
Article 34
We shall improve the measures for the administration of subsidy funds for the discarding and renewal of old automobiles and encourage
the discarding and renewal of old automobiles.
Article 35
The storage, transfer and disposal, etc. of the parts of discarded automobile and other waste, harmful materials (e.g., oil, liquid,
battery and harmful metal, etc.) shall comply with the requirements as prescribed in such laws and regulations as the Environmental
Protection Law and the Law on the Prevention and Control of Atmospheric Pollution so as to ensure that they are safe and pollution-free
(or to minimize the pollution).
Chapter VII Foreign Trade of Automobiles
Article 36
Since January 1, 2005, the state implements the automatic import licensing administration over automobiles, under which no bonded
area at an import port of automobiles is allowed to store automobiles with the purpose of entering the domestic market.
Article 37
The state prohibits the import of any old automobile, or the assembly, parts thereof or any automobile whose steering wheel is on
the right (except for the sample automobiles with a right steering wheel that are imported for the purpose of developing products
for export).
Article 38
Imported automobile shall have obtained the Certificate for China Compulsory Product Certification, be labeled with the China Compulsory
Certification mark (CCC), and have passed the sampling inspection conducted by the inspection and quarantine administration and shall
be accompanied by the instructions in Chinese as well.
Article 39
Any unfair deal in the import of automobiles and the relevant products shall be prohibited. The competent organ of the State Council
shall take anti-dumping and countervailing measures as well as safeguard measures for the automobile industry, organize the relevant
industrial associations to establish and improve an early warning system against any damage in the automobile industry and carry
out investigation and researches on the competitive power of the automobile industry. An automobile supplier or dealer shall be obliged
to offer the relevant information to the relevant department of the State Council in a timely and accurate manner.
Article 40
We shall encourage the foreign trade development of automobiles and the relevant products. We shall support and develop the national
export base of automobiles and parts and components, guide the relevant automobile suppliers and dealers to establish the sales and
service network abroad by diversified means, which may be in the form of joint venture, cooperative business operation or sole investment,
so as to optimize the structure of exported products and expand the access to the international market.
Article 41
We shall support the foreign trade development of automobiles and the relevant products by utilizing the Central Foreign Trade Development
Fund.
Article 42
Suppliers or dealers of export automobiles and the relevant products shall establish a necessary sales and service system according
to the relevant laws and regulations of the destination regions.
Article 43
Intergovernmental consultations shall be intensified, and support shall be provided to exporters of automobiles and related commodities
in their participation of responding to anti-dumping, countervailing and safeguard measures so as to protect the legitimate rights
and interests of China’s exporters of automobiles and related commodities.
Article 44
The automobile industrial association shall intensify the industrial self-discipline and establish competitive and orderly foreign
trade orders for automobiles and related commodities.
Chapter VIII Other Matters
Article 45
The establishment of a foreign-invested automobile trade enterprise shall, in addition to fulfilling the relevant qualifications,
comply with the provisions of the relevant laws and regulations on foreign investment and be subject to the examination and approval
of the administrative department of commerce of the State Council after having passed the preliminary examinations conducted by the
administrative department of commerce at the provincial level.
Article 46
The development of automobile consumption credit shall be accelerated and scale expanded. Support will be provided to the qualified
automobile suppliers for the establishment of automobile financing companies serving the whole industry. And guidance shall be provided
to the automobile financing institutions in their development of cooperative mechanism with other financial institutions, so as to
remarkably elevate the scale of economy and degree of specialization of the automobile consumption credit market and further improve
the risk management system.
Article 47
We shall build up the automobile insurance market, encourage the insurance products to develop toward the direction of individualization
and diversification and improve the automobile insurance service, so as to preliminarily realize a professional and intensified operation
of the automobile insurance industry.
Article 48
All the policies, institutions and regulations as formulated by the people’s governments in all regions concerning automobile trade
shall be in line with the present Policy and shall uphold the principle of being open and transparent. Any discriminative policy
in such respects as the circulation, service and use of the automobiles that are not locally produced or traded may not be adopted.
We shall resolutely prevent anyone from compelling local consumers to buy the locally-produced automobiles or doing so in any disguised
form, or interfering with the choice of an operator on the state licensing production or sale of automobiles by any means.
Article 49
The present Policy shall go into effect as of the day of promulgation. The administrative department of commerce of the State Council
shall be responsible for the interpretation of the present Policy.
Annex:Explanation on the terms as used in the Policies for Automobile Trade
1.
The term “automobile trade” includes the sale of new vehicles, the circulation of second-hand automobiles and automobile parts, the
discarding of automobiles, the reclamation of discarded automobiles as well as the automobile foreign trade.
2.
Unless any automobile brand sale is involved, the term “automobiles” as mentioned in the present Policy includes low-speed product
vehicles, three-wheeled motor car (former agricultural transport vehicles), trailers and motorcycles.
3.
The term “second-hand automobile” refers to an automobile that is traded and whose ownership is transferred in the duration from the
date when the formalities for its registration have been handled to the date when the national compulsory discarding standards are
satisfied.
4.
The term “supplier” refers to a manufacturer of automobiles or automobile parts as well as the general distributor thereof.
5.
The term “dealer” refers to a retailer of automobiles and automobile parts.
|
|
