Pricing Law of the People's Republic of China
Pricing Law of the People's Republic of China
Pricing Law of the People's Republic of China
Adopted at the 29th Meeting of the Standing Committee of the Eighth National People’s Congress on December 29, 1997 and promulgated by Order No. 92 of the President of the People’s Republic of China on December 29, 1997
Contents
Chapter I General Provisions
Chapter II Pricing by the Manager
Chapter III Pricing by the Government
Chapter IV Control of the General Price Level
Chapter V Supervision over and Inspection of Pricing
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Chapter I General Provisions
Article 1 This Law is enacted in order to standardize pricing, give play to the role of pricing in rationally allocating resources, stabilize the general level of market price, protect the lawful rights and interests of consumers and managers and promote the sound development of a socialist market economy.
Article 2 This Law shall be applicable to pricing within the territory of the People’s Republic of China.
Pricing as mentioned in this Law covers commodity prices and service prices.
Commodity prices refer to the prices of the various types of tangible products and intangible assets.
Service prices refer to the fees charged for the various types of paid services.
Article 3 The State institutes and gradually improves a mechanism under which prices are formed mainly by the market under the macro-economic control. Prices shall be set in compliance with the law of value, the prices of most commodities and services shall be regulated by the market and the prices of a very small number of commodities and services shall be guided or fixed by the government.
The prices regulated by the market refer to the prices set by the manager on his own and formed through market competition.
The managers as mentioned in this Law refer to the legal persons, other organizations and individuals engaging in production, dealing in commodities or providing paid services.
Prices guided by the government refer to the prices set by managers under the guidance of the government departments in charge of pricing or other relevant departments that, in accordance with the provisions of this Law, shall decide on the standard prices and their floating ranges within the limits of their powers for pricing and the scope of applicable commodities and services.
Prices fixed by the government refer to the prices set by the government departments in charge of pricing and other relevant departments in accordance with the provisions of this Law and within the limits of their powers for pricing and the scope of applicable commodities and services.
Article 4 The State supports and promotes fair, open and lawful market competition, maintains normal order of pricing and exercises administration, supervision and necessary control over pricing.
Article 5 The competent department for pricing under the State Council shall hold unified responsibility for the work of pricing throughout the country. The other relevant departments under the State Council shall, within the scope of their functions and duties, be responsible for the work respectively.
The competent departments for pricing under the local people’s governments at or above the county level shall be responsible for the work of pricing within their administrative regions. The other relevant departments of the said people’s governments shall, within the scope of their functions and duties, be responsible for the work respectively.
Chapter II Pricing by the Manager
Article 6 Commodity prices and service prices, with the exception of those whose prices shall be guided or fixed by the government under Article 18 of this Law, shall be regulated by the market, that is, fixed by the manager on his own in accordance with this Law.
Article 7 The manager shall follow the principles of fairness, lawfulness and good faith in fixing prices.
Article 8 Production and management cost and the market supply-and-demand situation constitute the basis for the manager to fix prices.
Article 9 The manager shall work hard to improve production and management, reduce production and management cost, provide consumers with commodities and services at reasonable prices, and reap lawful profits through market competition.
Article 10 The manager shall establish and perfect the internal price management system in light of his operational conditions, accurately record and verify the production and management cost of commodities and services; he may not resort to deceit.
Article 11 The manager shall enjoy the following rights in pricing:
(1) to fix on his own prices that are regulated by the market;
(2) to fix prices within the range stipulated by the government for its guidance prices;
(3) to set prices for trial sales of new products coming within the scope of products whose prices are guided or fixed by the government, with the exception of specially designated products; and
(4) to inform against or accuse infringements on his right to fix prices on his own according to law.
Article 12 In pricing, the manager shall abide by laws and regulations, accept the prices guided or fixed by the government according to law and carry out the statutory intervention and emergency measures regarding prices.
Article 13 In selling or purchasing commodities and providing services, the manager shall, as required by the government departments in charge of pricing, clearly mark the prices and clearly indicate the name, origin of production, specifications, grade, valuation unit and price of a commodity or service item, charging standards and other related particulars.
The manager may not sell commodities at a premium or charge any fees that are not clearly indicated.
Article 14 The manager may not commit any of the following illegitimate acts in pricing:
(1) colluding with others to manipulate the market price, thus harming the lawful rights and interests of other managers or consumers;
(2) besides disposing of perishable, seasonal and overstocked commodities at reduced prices according to law, dumping commodities at prices lower than production cost in order to drive out rivals or monopolize the market, thus disrupting normal production and operational order and impairing the interests of the State or the lawful rights and interests of other managers;
(3) fabricating and spreading information about price hikes and forcing up prices, thus stimulating excessive commodity price hikes;
(4) using false or misleading prices to deceive consumers or other managers into transacting a deal with him;
(5) while providing the same commodities or services, employing price discrimination against other managers with equal transaction conditions;
(6) forcing up or forcing down prices in disguised form by raising or lowering grades when purchasing or selling commodities or providing services;
(7) making exorbitant profits in violation of the provisions of laws and regulations; or
(8) other illegitimate acts in pricing prohibited by laws and administrative rules and regulations.
Article 15 The various types of intermediate organizations shall abide by the provisions of this Law in collecting charges for the paid services they provide, unless otherwise provided in laws.
Article 16 In selling imported commodities and purchasing export commodities, the manager shall observe the relevant provisions in this Chapter so as to help maintain domestic market order.
Article 17 Organizations of different trades shall abide by laws and regulations concerning prices, enhance self-discipline with regard to prices and accept guidance by the government departments in charge of pricing.
Chapter III Pricing by the Government
Article 18 When necessary, the government may guide or fix the prices for the following commodities and services:
(1) a very small number of commodities that have a vital bearing on the development of the national economy and the well-being of the people;
(2) a small number of commodities for which resources are scarce;
(3) commodities placed under natural monopoly;
(4) important public utilities; and
(5) important public welfare services.
Article 19 The limits of powers and the scope of applicable commodities and services for governments to guide or fix prices shall be based on the central and local pricing catalogues.
The central pricing catalogue shall be compiled and revised by the competent department for pricing under the State Council and published upon approval of the State Council.
The local pricing catalogues shall be compiled by the competent departments for pricing under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government within the limits of their powers for pricing and the scope of applicable commodities and services defined in the central pricing catalogue, which, after being examined and approved by the said people’s governments, shall be submitted to the competent department for pricing under the State Council for examination and approval before being published.
No local people’s governments at levels below the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may compile pricing catalogues.
Article 20 The competent department for pricing and other relevant departments under the State Council shall set government guidance prices and government fixed prices within the limits of their powers for pricing and the scope of applicable commodities and services defined in the central pricing catalogue; among the government guidance prices and government fixed prices, those for important commodities and services shall be set with the approval of the State Council, as required by the regulations.
The competent departments for pricing and other relevant departments under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall set government guidance prices and government fixed prices for their own regions within the limits of their powers for pricing and the scope of applicable commodities and services defined in the local pricing catalogues.
The people’s governments of cities and counties may, as authorized by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government, set government guidance prices and government fixed prices for their own regions within the limits of their powers for pricing and the scope of applicable commodities and services defined in the local pricing catalogues.
Article 21 Government guidance prices and government fixed prices shall be set on the basis of the average cost of relevant commodities or services, the market supply and demand situation, the requirements of the national economic and social development and tolerance of the community and within a reasonable price disparity between purchase and sale, between wholesale and retail sale, between regions and between seasons.
Article 22 Before setting government guidance prices and government fixed prices, the government departments in charge of pricing and other relevant departments shall carry out investigation into prices and costs and listen to the suggestions of consumers, managers and other parties concerned.
When the government departments in charge of pricing are carrying out investigation into prices and costs before setting government guidance prices and government fixed prices, the units concerned shall truthfully report the situation and provide the necessary account books, documents and other material.
Article 23 For the setting of government guidance prices and government fixed prices for public utilities, public welfare services and commodities under natural monopoly that have a bearing on the immediate interests of the masses, a system for evidentiary hearing shall be established which shall be presided over by the government departments in charge of pricing and at which suggestions of consumers, managers and the other parties concerned shall be solicited and expounded as to their necessity and feasibility.
Article 24 The government guidance prices and government fixed prices, after being set, shall be made known to the consumers and managers by the department that sets the prices.
Article 25 The scope of applicable commodities and services under government guidance prices and government fixed prices and the price level shall be readjusted at the right moment on the basis of the economic mechanism, within the limits of powers for pricing and in accordance with the procedures specified.
The consumers and managers may make proposals for readjustment of government guidance prices and government fixed prices.
Chapter IV Control of the General Price Level
Article 26 Stabilizing the general level of market prices is an important goal for the State macro-economic policy.
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