Administrative Measures for Trade of Used Vehicles
Administrative Measures for Trade of Used Vehicles
Administrative Measures for Trade of Used Vehicles
Order of the Ministry of Commerce, the Ministry of Public Security, the State Administration for Industry and Commerce, and the State Administration of Taxation [2005] No. 2
August 29, 2005
Administrative Measures on Trade of Used Vehicles adopted at the 18th meeting of the Ministry of Commerce on December 18, 2004, and is hereby issued upon approval of the Ministry of Public Security, the State Administration for Industry and Commerce, and the State Administration of Taxation with effectiveness as of October 1, 2005.
Attached: Administrative Measures on Trade of Used Vehicles
Chapter I General Provisions
Article 1 In order to intensify the administration of the circulation of second-hand automobiles, regulate the business operations of second-hand automobiles, guarantee the legitimate interests and rights of both parties to transactions of second-hand automobiles and facilitate the sound development of the circulation of second-hand automobiles, the present Measures are formulated in accordance with the relevant laws and administrative regulations of the state.
Article 2 The present Measures shall be applicable to the business operations of second-hand automobiles and the activities involving second-hand automobiles within the territory of China.
The term "second-hand automobiles" as mentioned in the present Measures refers to the automobiles that are traded and whose ownership is transferred in the duration from the completion of the registration formalities to the date when the state compulsory discarding standards are satisfied, including three-wheeled automobiles, low-speed motor trucks (former agricultural transport vehicles, hereinafter the same), trailers and motorcycles.
Article 3 The term "second-hand automobile market" refers to a business place that is established under the law and where centralized transactions of second-hand automobiles are conducted and the relevant services are provided for both parties to a transaction.
Article 4 The term "business operator of second-hand automobiles" refers to an enterprise that has gone through the registration formalities with the administrative department of industry and commerce under the law and undertakes the retail, auction, brokerage, appraisal and evaluation of second-hand automobiles.
Article 5 The term "business operations of second-hand automobiles" refers to such activities as retail, auction, brokerage, appraisal and evaluation of second-hand automobiles.
1. The term "retail of second-hand automobiles" refers to the business activities whereby a retail enterprise of second-hand automobiles purchases and sells second-hand automobiles;
2. The term "auction of second-hand automobiles" refers to the business activities whereby an auction enterprise of second-hand automobiles transfers a second-hand automobile to a bidder that offers the highest price through public bidding;
3. The term "brokerage of second-hand automobiles" refers to the business activities whereby a brokerage entity of second-hand automobiles, for the purpose of collecting commissions, engages in such business activities as intermediary, agency, and brokerage to promote other person's transaction of second-hand automobiles; and
4. The term "appraisal and evaluation of second-hand automobiles" refers to the business activities whereby an appraisal and evaluation organization of second-hand automobiles appraises and evaluates the technical qualities of a second-hand automobile and the value thereof.
Article 6 The term "direct transaction of second-hand automobiles" refers to a transaction whereby the owner of a second-hand automobile sells his automobile directly to a buyer without the assistance of any retail enterprise, auction enterprise or brokerage entity. Any direct transaction of second-hand automobiles shall be conducted in the second-hand automobile market.
Article 7 The administrative department of commerce, the administrative department of industry and commerce and the taxation department of the State Council shall, pursuant to their respective duties, take charge of the relevant supervision and administration work concerning the circulation of second-hand automobiles.
The provincial-level administrative department of commerce (hereinafter referred to as the administrative department of commerce at the provincial level), the administrative department of industry and commerce and the taxation department of the provinces, autonomous regions and municipalities directly under the Central Government and the city under separate state planning shall, pursuant to their respective duties, take charge of the relevant supervision and administration work concerning the circulation of second-hand automobiles within their jurisdiction.
Chapter II Requirements of and Procedures for Establishment
Article 8 A business operator of a second-hand automobile market, a retail enterprise and brokerage entity of second-hand automobiles shall possess the qualification of an enterprise legal-person and shall go through the registration formalities with the administrative department of industry and commerce according to law.
Article 9 An appraisal and evaluation entity of second-hand automobiles shall satisfy the following requirements:
1.
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