Laws of the People's Republic of China

National Development and Reform Commission, Ministry of Science and Technology, State Environmental Protection Administration

Announcement of the National Development and Reform Commission, the Ministry of Science and Technology and the State Environmental Protection Administration

No.9

For the purpose of promoting the construction and development of the system of circular economy in China, protecting the environment, enhancing the efficiency of resource utilization, fulfilling the scientific development concept, and realizing the sustainable development of society and economy, the National Development and Reform Commission, the Ministry of Science and Technology and the State Environmental Protection Administration jointly formulated the Technical Policy for the Recovery and Utilization of Automobile Products (hereinafter referred to as this Technical Policy).

This Technical Policy is a guiding document on pushing forward the establishment of the system of discarding and recovery of automobile products in China. It aims at guiding the production and sale of automobiles, initiation of relevant enterprises, carrying out and promoting the design, manufacture, discarding, recovery, and recycling of automobile products, etc. The state will, in good time, establish the relevant systems as mentioned in the Technical Policy and will start to promulgate and implement such systems in a successive manner prior to the year of 2010.

National Development and Reform Commission

Ministry of Science and Technology

State Environmental Protection Administration

February 6, 2006

The Technical Policy for the Recovery and Utilization of Automobile Products

Chapter I General Principles

Article 1

This Technical Policy is formulated for the purposes of protecting the environment, enhancing the resource utilization efficiency, fulfilling the scientific development concept and realizing the sustainable development of society and economy.

This Technical Policy is a guiding document on pushing forward the establishment of the system of discarding and recovery of automobile products in China. It aims at guiding the production and sale of automobiles, and initiation of relevant enterprises, and carrying out and promoting the discarding and recovery of automobile products. The state will, in good time, establish the relevant systems as mentioned in this Technical Policy and will start to promulgate and implement such systems in a successive manner prior to the year of 2010.

Article 2

The term "automobile" as mentioned in this Technical Policy refers to the Classes M and N motor vehicles as prescribed in the Classification of Motor Vehicles and Trailers (National Standards of the People's Republic of China GB/T15089-2001).

Article 3

This Technical Policy shall apply to the scope including design and production of new types of vehicles to be sold and registered within the territory of China, and the repair, maintenance, discarding, dismantlement and recycling of automobiles in using , as well as other links.

Article 4

The recycling of materials in the production, maintenance and dismantlement of automobile products shall be taken into consideration synthetically. It is encouraged to use renewable materials in the manufacture procedure of automobiles, to use recycled component parts in the repair of automobiles, to enhance the recycling rate of materials, to save the resources and utilize the resources efficiently, and give an impetus to the development of circular economy.

Article 5

The rate of recovery and utilization of automobiles refers to the rate of the reutilize of discarded automobile component parts and materials with regenerated energy, which is usually measured on the basis of the percentage of the recoverable and utilizable materials to the complete vehicle kerb mass.

For the recoverable and utilizable rate of automobiles, please refer to the Methods for the Computation of Recyclability and Recoverability of Road Vehicles (GB/T19515гн2004/ISO22628: 2002) and other relevant standards.

Article 6

The state shall gradually integrate the indicator of recoverable and utilizable rate of automobiles into the licensing management system for the market access of automobile products.

Article 7

The management of the responsibilities of automobile producers shall be intensified. A sound management system led by the automobile manufacturing enterprises shall be established in the sectors of production, use, discarding and recovery of automobiles.

Article 8

The competent department of the government shall, in good time, formulate and amend the matching policies and standards, strengthen the guidance and supervision management, and direct the automobile industry of China to formulate a scientific and efficient development plan under the scientific development concept so as to promote the highly efficient utilization of materials and decrease the consumption of energy.

A system shall be established for the classified collection and separated selection of the materials and substances of discarded automobiles, to promote the full and reasonable utilization and innocuous disposal of automobile wastes so as to decrease until eliminate the harm of such wastes, and incessantly to perfect the recovery, treatment and utilization system of renewable resources. By the end of 2012, it shall establish relatively perfect systems of laws and regulations, policy support system, technological innovation system, as well as a effective incentive and restraint mechanism for the recovery and utilization of discarded automobiles, shall establish a system of economic evaluation indicators for the recovery and utilization and shall set forth medium and long term strategic goals and multi-stage promotion plans.

Article 9

The state shall adopt a ratification system for the enterprises to engage in the treatment of discarded automobiles. Any entity to engage in the collection, dismantlement, utilization and disposal of discarded automobiles shall apply for a licence. It is forbidden to engage in the collection, dismantlement, utilization and disposal of discarded automobiles without licence.

Article 10

The development, application of new technologies and new equipment in each link of the chain of automobile industry shall be intensified according to the "reduction-based, reuse, and resource-based" principles. An economic growth mode, of which the main features are low consumption, low discharge and high efficiency and which is in line with the sustainable development concept, shall be carried out so as to make the recoverability rate of the production and sale of complete vehicle products in China reach the international advanced level.

The goal of the first stage: from 2010, the recoverable and utilizable rate of all home-made and imported vehicles in Classes M2, M3, N2 and N3 shall reach 85% or so, of which the recyclability rate of materials shall not be less than 80%. The recoverable and utilizable rate of all home-made and imported automobiles in Classes M1 and N2 shall reach 80%, of which the recyclability rate of materials shall not be less than 75%. At the same time, except the lead-bearing alloys, storage batteries, lead plating, chromeplating, additives (stabilisers), and mercury for lamps, the use of lead, mercury, cadmium and hexavalent chromium shall be controlled.

From 2008, the automobile manufacturing or distribution enterprises shall start to undertake the register and archival filing for the recoverable and utilizable rate of automobiles, and make preparations for carrying out the multi-stage tasks.

The goal of the second stage: from 2012, the recoverable and utilizable rate of all home-made and imported automobiles shall reach 90% or so, of which the recyclability rate of materials shall not be less than 80%.

The goal of the third stage, from 2017, the recoverable and utilizable rate of all home-made and imported automobiles shall reach 95% or so, of which the recyclability rate of materials shall not be less than 85%.

The low-speed cargo automobiles, three-wheel automobiles, motorcycles and trailers shall also be governed by the provisions on motor vehicles in the Classes M and N, but the specific goal and implementation date shall be determined separately.

Attentions shall be paid to the protection of environment in the links of production, use and discarding of automobiles. The treatment and disposal of the wastes generated from each link shall meet the national environmental protection standards as well as the relevant policy and regulatory requirements, and shall try to diminish and even eliminate the harm of the wastes to the living environment of the mankind.

Chapter II Design and Production of Automobiles

Article 11

In the design and production of any automobile product to be sold in China, the dismantlability and easiness of dismantlement after the discarding of the product shall be taken into full consideration, and the principle of being easy to sort out different kinds of materials shall be followed. Priority shall be given to the adoption of technologies and techniques that can utilize the resources in a highly efficient manner, produce little pollutants, and are conducive to the recovery and utilize of the product after discarding, so as to enhance the level of technologies for the design and production of automobile products.

Article 12

A relevant enterprise shall try its best to adopt small-sized or light weight and renewable component parts or materials, shall try its best to choose recyclable materials as the production materials, and shall incessantly reduce the varieties of materials so as to facilitate the recovery and utilize of materials.

The recoverability rate and recyclability rate of all plastic materials of automobile products shall be raised continuously.

It is forbidden to utilize any materials that will emit toxic substances and do harm to the environment. The relevant enterprises shall reduce and finally stop the use of non-renewable materials, or materials disadvantageous to the environmental protection.

The utilization of lead, mercury, hexavalent chromium and other heavy metals shall be controlled. The aforesaid heavy metals are allowed to be used only in some particular circumstances according to a checklist, which is reviewed regularly.

An enterprise shall attach marks and codes to the component parts containing harmful substances.

Article 13

A supporting enterprise of automobile component parts shall provide the automobile production enterprises with the composition, structural design or dismantlement guide, content and nature of the harmful substances, methods for the disposal of wastes, and other information relevant to the component parts it supplies so as to help the complete automobile production enterprises calculate the recoverable and utilizable rate of their respective products.

Article 14

Where conditions are ripe, the state will encourage the automobile production enterprises or the general agents of imported automobiles to choose distributors and special repair shops of their respective brand to carry out revamp or re-manufacture business relating to the used component parts. The quality of the revamped or re-manufactured component parts shall satisfy the corresponding quality requirements, and such component parts shall be given an indication that they are revamped or re-manufactured.

Article 15

From 2010, an automobile production enterprise or general agent of imported automobiles shall be responsible for the recovery and treatment of the automobile products it sells and their packing articles, or may entrust the relevant institutions or enterprises to be responsible for the recovery and treatment of the automobile products that it produced or sold and their packing articles.

The design and production of packing articles for automobile products shall be in line with the provisions of the state on clean production and shall meet the relevant standards and requirements.

An electric automobiles production enterprise (including hybrid-powered automobiles, etc.) shall be responsible for the recovery and treatment of the storage batteries of the electric automobiles it sells.

Article 16

An automobile production enterprises or general agent of imported automobiles shall be responsible for the recovery of its products, and treatment or disposal of its products according to the requirements for environmental protection and recovery and utilization, or pay the relevant recovery and treatment fees.

The recovery and treatment fees for different type of automobiles shall be decided and adjusted by the relevant departments on the basis of the technological level of recovery and treatment of discarded automobiles, recycling ability, price, entrusted treatment business and other factors of our country during different periods of time. If the automobile price is changed due to bearing the recovery and treatment fees, the increased part of price shall not exceed the prescribed amount or rate.

The management, incomes, expenses and purposes of the recovery and treatment fees shall be in line with the principle of openness, impartiality and fairness and shall be subject to the supervision of the government, enterprises and the public.

Article 17

An automobile production enterprise shall, on its own initiative, cooperate with the downstream enterprises, provide the recovery, dismantlement and breaking enterprises with a Guiding Brochure for Automobile Dismantlement, relevant technical information and relevant technical training so as to jointly promote the incessant rise of the recoverable and utilizable rate of discarded automobiles.

Article 18

The automobile production enterprises shall closely cooperate with the enterprises engaging in the production or re-manufacturing of component parts, recovery and dismantlement of discarded automobile, and renewal of materials, share the relevant information, track the international advanced technologies and make concerted efforts to tackle the key problems so as to jointly enhance the recyclability rate and recoverable and utilizable rate of automobile products.

The automobile production enterprises or general agents of imported automobiles shall actively support the governmental departments to carry out topic research, policy formulation and other relevant tasks, shall actively carry out tackling key problems on scientific research, technological innovation, equipment renovation and other tasks for the enhancement of the recoverable and utilizable rate of automobile products.

Chapter III Automobile Decoration, Repair and Maintenance

Article 19

During the courses of automobile decoration, repair and maintenance, the relevant enterprises shall choose and use products with a high recoverable and utilizable rate, safety and environment protection as the courses of automobile production..

Article 20

The disassembled and discarded component parts shall be classified into different categories and be properly kept. Where policy permits, it is encouraged to make qualified component parts diverted from the automobiles to re-enter circulation sector as component parts for the repair of automobiles.

The enterprises meeting the requirements for technologies, equipment and testing are encouraged to re-manufacture component parts for the repair of automobiles by making use of the component parts diverted from the discarded automobiles as well as the used component parts replaced in the repair.

The disassembled or discarded accessories and parts, which have lost the originally designed functions and are of no remanufacturing value, shall be respectively delivered to the corresponding materials recycling and treatment enterprises for recycling and shall not be disposed by dumping, spilling, burying or any other way whereby the environment will be harmed.

Article 21

The storage batteries, catalytic converter, waste oil, waste liquid, waste rubber (including tyres) and plastic items generated in the courses of care or maintain of the automobiles shall be recovered, preserved and transported according to different categories, and shall be delivered to the relevant enterprises for treatment, disposal, changing the purpose, or being used for energy renewal.

Article 22

The items containing any toxic substance or any substance harmful to the environment or human body, such as storage batteries, airbags, catalyzer and refrigerants, shall be delivered to qualified enterprises for treatment.

The collection, storage, transport and treatment of hazardous wastes shall be in compliance with the Standards on the Control of Pollution in the Storage of Hazardous Wastes, the Standards on the Control of Pollution When Burying Hazardous Wastes, the Standards on the Control of Pollution When Burning Hazardous Wastes and other safety and environmental protection requirements.

Article 23

The enterprises engaging in the treatment of polluting wastes and toxic substances shall be subject to strict access management. The supervision and inspection over such enterprises shall be intensified so as to diminish and avoid harm to the environment and human health.

No entity may engage in the collection, utilization, storage, transport, treatment or any other business relating to hazardous waste unless it has obtained a business permit from the environmental protection department.

Chapter IV Import of Used Automobiles and Their Component Parts

Article 24

Except that it is permitted to import auto generator, starter and micro-motors for remanufacturing for automobile repair, it is prohibited to directly import any discarded or used automobile component parts for remanufacturing for automobile assembling production or repair.

The import of used motors shall meet the requirements in the Environmental Protection Control Standards on the Import of Solid Wastes as Raw Materials- Discarded Motors (GB16487.8-2005).

Article 25

On the precondition that it does not violate the relevant environmental protection requirements, a materials production enterprise may, according to the relevant provisions, import discarded automobiles (which have already become chipping) and component parts as raw materials of production, but it is prohibited to assemble such imported items into vehicles and to let them enter the circulation link.

It is prohibited to use any component parts which are diverted from any imported discarded or used automobiles, directly or upon re-manufacture, in the assembly production or repair of automobiles.

Article 26

It is prohibited to import or process any automobile materials with high energy consumption, low efficiency, severe pollution or high cost, or which are toxic and harmful to the environment.

Article 27

In the international trade relating to the development of resource renewal industry, the import of automobile wastes and other wastes shall be strictly controlled.

On the precondition that the import of automobile wastes and other toxic and harmful wastes is strictly controlled, two markets, two kinds of resources shall be fully used, and the international trade relating to the resource renewal industry shall be developed actively.

Chapter V Recovery and Recycling of Automobiles

Article 28

During the courses of recovery, dismantlement and recycling, the relevant enterprises shall, in accordance with the principles of scientific procedures, work-related environmental protection, highly efficient renewal, low consumption, enhance the renewal quality, expand the renewal scope and decrease the quantities of wastes.

The relevant enterprises shall scientifically carry out the pretreatment, dismantlement, cutting, breaking, treatment of non-metal items (substances which have been confirmed to be used for recycling, or may be used for energy renewal in the future), and shall increase the reuse, recycling and recovery and utilization rates of the component parts and various substances of discarded automobiles.

Article 29

The enterprises manufacturing automobile materials and substances shall actively develop new materials which are recyclable and will do no harm to the environment, especially intensify the development and application of technologies of renewable materials and substitutes, expand the renewable fields of recovered materials, enhance the quality of renewable products and promote the rapid and sound development of circular economy.

The recovery and dismantlement, renewal of materials, and other recovery and utilization enterprises shall incessantly enhance their technologies and management levels and shall, jointly with the enterprises manufacturing automobile products, make concerted efforts to realize the multi-stage goals of our country on the recovery and utilization rate to ensure the social and economic benefits.

Article 30

The discarded automobile recovery and dismantlement, and recovery and recycling enterprises shall meet the requirements of Chapter III concerning the dismantlement of component parts, waste oil, noble metal materials and solid wastes. At the same time, the operating rules formulated by such enterprises shall be in line with the requirements of the laws, regulations, and technical standards and regulations of the state.

Article 31

The recovery and dismantlement enterprises shall have necessary professional technicians and shall have special equipment and places that can meet the needs of their respective treatment capacity.

The recovery and dismantlement and renewal enterprises shall, through structural adjustment, optimization of industry, technological renovation, and other measures, establish necessary conditions, enhance the awareness of economization and environmental protection, improve the treatment facilities, promote the treatment capacity and gradually form professional and mass operations.

Article 32

For the purposes of preventing environmental pollution, and realizing the commitments of automobile production enterprises or general agents of imported automobiles regarding the recovery and utilization rate, the enterprises of recovery and dismantlement of discarded automobiles shall sign agreements with the automobile production enterprises or general agents of imported automobiles for enhancing the ability to dismantle or reuse the discarded or used automobile products.

Where a recovery or dismantlement enterprise does not meet or no longer meets the conditions as stipulated in the recovery and treatment agreement, the corresponding automobile production enterprise or general import agent may abolish this agreement.

Chapter VI Promotion Measures

Article 33

For the purposes of effectively realizing the recovery and utilization of discarded automobile products, the enterprises whose recovery and utilization rate of products has reached or exceeded the current limit as provided for by the current policy in advance, or which has utilized a certain volume of renewable materials in the production, or which has developed and adopted recovery technologies and equipment, or which has introduced any specialized treatment technology and equipment and has developed such technology and equipment domestically shall be given necessary preferential policies by state so as to encourage the automobile product production, and recovery enterprises to increase the recovery and utilization rate of automobile products and to utilize renewable materials actively. ,.

Article 34

The relevant enterprises are encouraged to digest and absorb overseas advanced technologies of product design, production of new materials, dismantlement of discarded automobiles, re-manufacture of used accessories and parts, and of materials recovery and renewal, to develop and apply the advanced monitoring and testing devices and equipment, to establish a new and highly efficient production technology system, and to improve their international competitive ability relating to the automobile recovery and utilization technologies and equipment through the measures of joint venture, cooperation, technology introduction and etc..

Article 35

The competent department of the government shall organize the research, development and popularization of the production techniques and equipment that may reduce the quantities of industrial solid wastes and shall publicize the list of backward production techniques and equipment which bring industrial solid wastes and seriously pollute the environment and which should be eliminated within a time limit,.

The producers, distributors, importers or users shall, within the time limit as prescribed by the comprehensive administrative department of economy under the State Council jointly with other relevant departments of the State Council, stop using, selling, importing or using the equipment included in the list as mentioned in the preceding paragraph. The enterprises shall stop adopting the production techniques included in the list as mentioned in the preceding paragraph. The equipment washed out under the provisions of the preceding paragraph shall not be transferred to others for use.

Article 36

The competent department of the government shall timely set forth a timetable for the automobile materials limited for use and direct the enterprises to actively adopt materials, which will not do harm to the environment and are favorable for recovery.

Where any automobile production enterprise or importer fails to satisfy the requirements for recovery and utilization rate within a certain time limit, it shall be given a corresponding punishment and be surcharged a sum of environmental protection and treatment fee.

Article 37

The state advocates the living styles and consumption forms that are favorable to saving resources and protecting the environment, and encourage the use of green products, such as products with environmental marks, and products with energy-efficiency marks, etc.

When the government purchases automobile products, it shall give top priority to the products with a high recovery and utilization rate.

The discarded automobile owners and recovery and dismantlement enterprises shall, in strict compliance with the Measures for the Management of the Recovery of Discarded Automobiles (No. 307) promulgated by the State Council in 2001 and other relevant policies and regulations, to deliver, dismantle and dispose the discarded automobiles.

Article 38

The relevant enterprises are encouraged to remanufacture automobile engines and other discarded or used electro-mechanical products and establish a garbage classification and selection system so as to incessantly improve the system of resource recycling, treatment and utilization.

Article 39

The competent departments of automobile production, industry and commerce, environmental protections, etc. shall intensify the supervision and control according to law so as to effectively enhance the actual recovery and utilization rate of automobile products of our country.

Article 40

The recovery and utilization network of discarded automobiles shall be improved, the recovery and treatment of technical route shall be clarified, and various regulations, policies and measures shall be formulated to promote recoverability and recyclability of discarded automobiles.

The relevant governmental departments shall, according to the situation of recovery and utilization of automobile products in China, organize the relevant institutions and enterprises to do deep research into the pertinent policies and regulations, formulate and improve various supporting policies, try to realize the multi-stage goals of the recovery and utilization rate of automobile products of our country.

Appendix:Terms and Definitions

For the terms and definitions as mentioned in this technical policy and work guide, please consult the Road Vehicles Recyclability and Recoverability Calculation Method (GB/T19515- 2004/ISO22628: 2002)

1.

Vehicles mass

The complete vehicle kerb mass as prescribed in GB/T 3730.2-1996

2.

Reuse refers to the act of using the component parts of discarded vehicles on the basis of any of the designed purposes.

3.

Recycling refers to the act of making the discarded materials satisfy the original utilization requirements or be used for other purposes by way of re-processing, excluding the processing course to make such materials generate energy.

4.

Recovery and utilization refers to the act of making the discarded materials satisfy the original utilization requirements or be used for other purposes by way of re-processing, including the processing course to make such materials generate energy.

5.

Dismantlability refers to the ability to dismantle the component parts from the vehicles.

6.

Reusability refers to the ability of the component parts to be diverted from vehicles and to be re-utilized.

7.

Recyclability refers to the ability of the component parts/ or materials to be diverted from vehicles and to be re-utilized.

8.

Recyclability rate refers to the percentage (mass percentage) by mass of a new vehicle, potentially able to be reused and recycled.

9.

Recoverability refers to the potential for recovery of component parts or materials diverted from a discarded vehicle.

10.

Recovery and utilization rate refers to the percentage by mass of a new vehicle, potentially able to be reused and recovered (mass percentage).

11.

Hazardous wastes refer to the wastes included in National Catalogue of Hazardous Wastes or those determined as hazardous wastes under the national standards on the identification standards and approaches.

12.

Treatment refers to the act of decomposing, cleaning, combining, processing, remanufacturing or regenerating discarded or used articles or substances through physical, chemical and other methods so as to make such discarded or used articles and substances satisfy the requirements for reuse, innocuity or harm diminishment and environmental protection.

13.

Disposal refers to burning solid waste and other methods that change the physical, chemical or biological characteristics of the waste in order to reduce its volume, make its cubage shrink, reduce or eliminate its hazardous components, or refers to the final deposition of solid wastes into the places or facilities as required by the environmental protection provisions, and never taking them back.

14.

Automobile products include the complete vehicles, component parts and other substances available for automobiles. An automobile refers to a complete automobile.

15.

The automobile production enterprises refer to enterprises manufacturing (including refitting) complete automobiles. Enterprises manufacturing automobile products include enterprises manufacturing complete automobiles, component parts and other substances available for automobiles.