Laws of the People's Republic of China

The Ministry of Commerce, the Ministry of Public Security

The Circular of the Ministry of Commerce and the Ministry of Public Security on Relevant Issues concerning the Implementation of the Measures for Administration of Pawn

With a view to better implementing the Measures for Administration of Pawn (Order [2005] No.8 of the Ministry of Finance and the Ministry of Public Security, hereinafter referred to as the Measures) and further strengthening and improving the supervision and administration of pawn industry, relevant issues concerning the implementation of the Measures are hereby notified as follows:

1.

to study hard and implement the Measures

The competent departments of commerce and public security authorities of all levels shall fully comprehend the importance of implementation of the Measures in standardizing the pawn activities, strengthening the supervision and administration on pawn industry and promoting its continuous health development, etc., and shall, based on the overall interest of assuring the economic development and maintaining the social stability, hold precisely the position of pawn industry in the development of social economy; they shall build up the concept of overall outlook, and increase the awareness of responsibility and the consciousness in implementing the Measures. The competent departments of commerce and public security authorities of all levels shall reinforce the training of people in charge of the supervision on local pawn industry, study hard the Measures, comprehend completely and accurately the basic contents and requirements of all provisions, strengthen and improve continuously the supervision on pawn industry, report timely to the Ministry of Commerce and the Ministry of Pubic Security of relevant information and problems in the process of implementing the Measures and attach importance to the self-discipline effect of such intermediary organizations as pawn associations and increase the awareness of paw companies to operate legally.

2.

to enhance cooperation and do a good job in the administration of pawn industry

The competent departments and public security authorities of all levels shall abide by the provisions of the Measures, attend to their respective functions and take practical measures to do a good job in the administration of pawn industry. Firstly, the market admittance shall be guarded in accordance with the laws and regulations such as the Administrative License Law and the Measures, etc. Local competent departments of commerce shall carry out earnestly the preliminary examination of new pawn companies or branches; the public security authority shall earnestly carry out the verification and issuance of the License for Special Industry. The examination and approval shall be standardized in accordance with laws and regulations to insure an open, just and fair process of the examination and approval and to eliminate blind examination and approval and the examination and approval that violates the laws and regulations. Secondly, daily business supervision and public security administration shall be carried out earnestly. The competent departments of commerce shall strictly abide by the Measures to standardize the business activities of pawn industry, establish and implement the systems of periodic examination, aperiodic selective examination, trade statistics and report of material events carry out dynamic supervision and whole process supervision. The acts violating provisions such as operating beyond the business scope and charging interest and fees above the prescribed standard shall be investigated and dealt with timely. The public security authorities shall carry out centralized administration of the public security administration on pawn industry. The security sectors of the public security authorities shall be in charge of the daily public security administration. The public security authorities shall strengthen the preventing measures in the security administration on pawn industry, and strictly require the pawn company that conducts the pledge or pawn business of movable property or property rights to fill in as required by the Measures the Registration Table of Pawned Goods (in the attachment) and to submit it to the public security authorities for future reference; periodic and aperiodic security examination of pawn companies shall be carried out to prevent, find out and fight against, in accordance with laws, the violating acts or crimes in the pawn industry to construct actively an integrative mechanism in prevention and control of security administration of pawn industry and to maintain the security order of pawn industry in accordance with laws and regulations. Where the pawner pawns or redeems a motor vehicle, the vehicle administrative department shall go through the pledge registration procedure of the motor vehicle such as the drive stop or recover procedure, and take back or return the number plate and registration license. The vehicle transfer shall be registered after dead pawn based on the transaction invoice. Thirdly, the administrative job shall be well done. On the one hand, the service awareness shall be enhanced, and the procedure simplification and the changing procedure shall be done timely. On the other hand, the administration on the outside transfer of stocks of the pawn company shall be strengthened to prevent the access of ineligible companies or individuals to the pawn industry, especially to prevent the pawn company from taking the chance to raise funds, attracting deposit in a disguised form or selling the business certificate at a profit.

The competent departments of commerce and public security authorities at all levels shall cooperate with each other to form a combined force to increase the effect of supervision. One is to increase the awareness of coordination, publicize timely the information of market access, daily business supervision, security administration, change and annual examination and do a good job in the link and cooperation of related departments. Two is that the competent departments of commerce shall inform timely the security authorities and handle the transfer procedure if clues of violation or crimes are found in the process of supervision and administration. Three is to fight against the business acts that violate the laws and regulations and that the security authorities shall, in accordance with laws and regulations, put on record and quickly deal with the case of interference with the performance of official duties, especially the case of violent resistance against laws.

3.

the specific issues concerning the implementation of the Measures

(1)

Issues on the preliminary examination of the applying materials of a new pawn company. Before the applying materials for establishing of a pawn company or of a branch of an existing pawn company is submitted to the Ministry of Commerce, the local competent departments of commerce shall transfer the applying materials concerning security administration to the security authority of the people's government at the same level which shall, within 5 workdays after the receipt of the materials transferred by the competent department of commerce, form a preliminary examination and approval opinion and inform the competent department of commerce at the same level (the detail operation procedure is determined by the competent departments of commerce and the public security department or bureaus of all provinces, autonomous regions and the cities directly under central planning). The security sections of the public security department or bureaus of all provinces, autonomous regions and the cities directly under central planning shall submit in written form the preliminary examination opinion to the Security Administration Bureau of the Ministry of Public Security for archival purpose. When preliminarily examining the applying materials, local competent departments of commerce and public security authorities shall, with respect to the security protection measures, attach importance to the examination of the ichnography and the construction structure chart of the business sites and storehouses, the distributing chart of the installation and setting of security prevention measures, related written materials and the written promise made by the applicant.

(2)

Issues concerning the verification and issuance of the License for Special Industry. The verification and issuance of the License for Special Industry of pawn industry is in the charge of the public security authorities of the municipalities that are divided into districts; the verification and issuance of the License for Special Industry of pawn industry in autonomous regions shall be in the charge of the public security authorities of the autonomous regions. The public security authority shall verify and issue the License for Special Industry after the security prevention measures are installed and meet the requirements of checkup and acceptance. Where the applicant does not handle the license for special industry within prescribed time with allowable reasons, the local public security authority may make deferral thereof; with respect to deferral or delayed handling, the public security authority shall require the applicant to give written explanations.

(3)

The scope of senior managers. The "other senior managers" as prescribed in paragraph 4 of article 16 of the Measures shall refer to the directors, supervisors, managers, and the staff in charge of finance. Where a person is separated from the registered permanent residence and resides more than 6 months in the temporary residence, the public security authorities in the temporary residing place shall issue the non-crime record in the temporary residing period besides the attestation by the public security authorities in the registered permanent residence.

(4)

The issues concerning the security standard to be met by existing pawn companies. The competent department of commerce and public security authority shall require the pawn company whose existing security system has not been up to the standard to make reforms in accordance with the provisions of the Measures before August 1, 2005 so as to establish and perfect relevant security systems. Where the buildings, business facilities and security prevention facilities of the pawn company do not meet the requirements of article 10 of the Measures, they shall be disposed of to meet the requirements before April 1, 2006. The public security authority verifying and issuing the License for Special Industry, together with the competent department of commerce, shall organize the pawn companies within respective jurisdiction to carry out the examination and reform.

The information of implementation shall be reported timely to the Department of Market System Construction Department of the Ministry of Commerce by the competent departments of all provinces, autonomous regions, cities directly under central government and Xinjiang Production and Construction Corps; the public security departments, bureaus of all provinces, autonomous regions, cities directly under central government and Xinjiang Production and Construction Corps shall make report thereof timely to the Security Administration Bureau of the Ministry of Public Security.

The linkmen and telephones: Sunyong, Ligang of the Market Construction Department of the Ministry of Commerce, 010-85226396 or 5226395

The Security Administration Bureau of the Ministry of Public Security: Xuyong, 010-65203702

Attachment: the Registration Form for Pawned Goods(omitted)

The Ministry of Commerce

The Ministry of Public Security

May 17, 2005