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Rules of the Shenzhen Special Economic Zone on Administration of Trading of Used Motor Vehicles

Order of the Shenzhen Municipal People' s Government

 

(No. 30, Issued on June 25, 1994)

 

         Rules of the Shenzhen Special Economic Zone on Administration of Trading of Used Motor Vehicles was deliberated and adopted at the Eightieth Executive Meeting of the Municipal People' s Government on April 23, 1994, and it is now promulgated and take effect as of the date of promulgation.

 

                                                                 Li Youwei

                                                                 Mayor

 

Rules of the Shenzhen Special Economic Zone on Administration

of Trading of Used Motor Vehicles

 

(Promulgated by the Shenzhen Municipal People' s Government on June 25, 1994, Revised at the 122th Executive Meeting of the Second Shenzhen Municipal People' s Government on December 3, 1998)

 

 

         Article 1 In order to strengthen administration of trading markets of used motor vehicles, stop illegal trading, and maintain a normal order in trading of used motor vehicles, these rules are hereby formulated in the light of the special conditions of the Shenzhen Special Economic Zone (hereinafter referred to as the Special Zone).

 

         Article 2 The used motor vehicles referred to in these measures shall mean the automobiles, motorcycles, and other motor vehicles which have legal origins, complete data, and have been used for more than half a year.

 

         Article 3 All units and individuals engaged in trading of used motor vehicles within the Special Zone shall abide by these rules.

 

         Article 4 Used motor vehicles shall be traded within a trading market of used motor vehicles, and private trading out of such a market shall be forbidden.

         A trading market of used motor vehicles shall apply to the Shenzhen municipal (hereinafter referred to as the municipal) department of industry and commerce administration for registration according to law, and business may not be started without registration.

 

         Article 5 The municipal department of industry and commerce administration shall be responsible for daily supervision and administration of trading markets of use motor vehicles, and the municipal departments of public security in charge of traffic control, transportation, customs, etc., shall be well engaged in the supervision and administration according to their respective functions and duties.

 

         Article 6 To apply for establishing a trading market of used motor vehicles, it shall be required to meet the following conditions, in addition to having the documents of approval from the Guangdong provincial departments of public security in charge of traffic control and of materials and equipment management, and having an approved name:

having a fixed site for business and a legitimate, valid certificate for using the site;

having registered capital of more than 10,000,000 RMB;

having a certain number of professional technical personnel who qualify as vehicle price appraisers;

the other conditions stipulated by the municipal government.

If trading of used motor vehicles is done by auction, it shall also meet the conditions

stipulated in Items (2), (3), (4), (5) of the first section of Article 20 of Regulations of the Shenzhen Special Economic Zone on Property Auction.

 

         Article 7 A trading market of used motor vehicles shall provide a site, information, and the related service facilities for trading of used motor vehicles, and take charge of trading between both parties concerned.

         A trading market of used motor vehicles may charge service fees, and the service fee shall not exceed 1% of the total value of a concluded transaction, and be assumed by both parties of trading.

 

         Article 8 The vehicle price appraisers of a trading market of used motor vehicles (hereinafter referred to as appraisers) shall obtain qualifications confirmed by the municipal department of public security in charge of traffic control and the municipal department of industry and commerce administration. When providing an appraisal service for both parties of trading, an appraiser shall be objective, fair, and truthful, may not provide a false appraisal certificate, and may not be engaged in buying and selling of used motor vehicles.

         The appraisal criteria for used motor vehicles shall be set by the municipal department of public security in charge of traffic control jointly with the municipal department of industry and commerce administration, and be made public.

 

         Article 9 Based on the option of the party concerned, a trading market of used motor vehicles may adopt a way to do business such as face-to-face trading on the site, purchasing, procuratorial buying, consignment selling, auctioning, etc.

 

         Article 10 Both parties concerned in trading of a used motor vehicle shall conclude a written trading contract. The trading contract shall include the following items:

the names or titles of both parties concerned in trading;

the make and quantity of vehicles;

the license plate, the serial number of engine and chassis;

the quality of vehicles;

the trading prices and the method of payment;

the name of the trading market of used motor vehicles;

the other items agreed by the parties concerned.

 

Article 11 The following used motor vehicles, after being confirmed as qualified

in a quality and safety appraisal done by the municipal department of public security in charge of traffic control, shall be allowed to enter a trading market of used motor vehicles for sale:

the commodity vehicles;

the imported rebuilt vehicles with valid documents of approval and completed customs formalities;

the duty-free vehicles originally imported by the units of the Special Zone for their own use with documents of approval to be sold out of the Special Zone or approval of the formalities for transferring by the customs;

the vehicles donated or given as gifts by the overseas Chinese, compatriots in Hong Kong and Macao, and compatriots in Taiwan after the original approving offices have agreed to transfer and sell the vehicles, and the customs has also approved to do so through completion of its formalities;

the used motor vehicles proved to be qualified for continual use by a technical inspection done by the department of vehicle administration after rebuilding;

the other vehicles which may be traded according to the rules.

The used motor vehicles released from military service shall be traded in compliance

with the related rules of the state.

 

         Article 12 The following vehicles shall be forbidden to be traded:

the smuggled vehicles;

the vehicles of unknown origin;

the vehicles with incomplete formalities;

the vehicles to be discarded according to the rules;

the vehicles pieced together and assembled without authorization;

the other vehicles forbidden to be transferred according to the rules.

 

Article A trading market of used motor vehicles shall comply with the following

procedure in trading:

     (1) The seller shall park the used motor vehicle within the trading market of used motor vehicles and provide the following documents:

1. the identification paper of the unit or individual, the identification paper of the legal representative of the unit;

         2. the surcharge certificate;

3. the certificate of passing of the annual inspection and the certificate of appraisal of used motor vehicles;

4. the certificate of non-duty-free vehicle issued by the municipal department of public security in charge of traffic control if the vehicle is an imported commodity vehicle;

5. the permission of the customs if the vehicle is an imported duty-free vehicle.

     (2) The Buyer shall provide the following documents:

1. the identification paper of the unit or individual, the identification paper of the legal representative of the unit;

2. the documents of approval from the department of processing control and the department in charge of  transportation if the buyer is the unit for which buying a vehicle needs approval from the department of processing control and authorization of the department in charge of transportation concerning how many vehicles the unit is allowed to have;

Selling an imported vehicle out of Guangdong Province shall follow the related rules of the state.

     (3) The trading market of used motor vehicles shall examine the certificates and materials provided by both parties of trading and notify them to make up missed documents if the documents are incomplete. After passing the examination, the both parties of trading shall choose a way on their own to do trading. If the both parties or one party of trading want an appraisal of vehicle price, an appraiser shall do so, and the price decided by the appraisal shall be a price for reference in trading. If a vehicle falls into one of the items of Article 12 of these rules or a vehicle has not passed the appraisal by the municipal department of public security in charge of traffic security, the trading market of used motor vehicles shall not provide services for the seller.

     (4) After both parties of trading have concluded a transaction, they shall go through the formalities for a concluded transaction, receive trading invoices, and pay the service charge according to the rules; the municipal department of industry and commerce administration shall affix a special seal for examination on the invoices.

     (5) The department of public security in charge of traffic control shall process the transfer of titles after examining of the certificates and materials stipulated in Items (1), (2), (3), (4) of this article.

 

         Article 14 If any violation of these regulations by the managerial staff, appraisers of a trading market of used motor vehicles has been found by both parties of trading in the procedure of transaction, a complaint may be filed to the municipal department of industry and commerce administration.

         If the both parties or one party of trading have suffered from a loss because of the mistake of the managerial staff, appraisers of a trading market of used motor vehicles, the trading market and the directly responsible persons shall be held liable for joint and several compensation.

 

         Article 15 The municipal department of industry and commerce administration shall be responsible for investigation and punishment of the following illegal acts:

in case of opening a trading market of used motor vehicles without authorization and registration by the municipal department of industry and commerce administration, correcting illegal activities shall be ordered, and a punishment shall be imposed according to the related rules;

in case of trading a used motor vehicle privately out of the trading market of used motor vehicles, a fine of less than 10% of the value of the vehicle shall be imposed on the party concerned of trading, and complying with the formalities of trading according to the rules shall be ordered.

in case of raising the service charge of trading by a trading market of used motor vehicles in violation of these rules, refunding shall be ordered, and a fine of 3 times of extra charge shall be imposed;

in case of encroachment upon the interests of one party of trading by a trading market of used motor vehicles collaborating with another party of trading, the trading market of used motor vehicles shall be instructed to stop business and make rectification; if the case is serious, the business license shall be suspended; if it has caused a property loss for one party of trading, the trading market of used motor vehicles and another party of trading in collaboration shall be held liable for joint and several compensation.

in case of encroachment upon a client' s interests by an appraiser through practicing fraud in violation of the rules, the appraiser shall be disqualified; if it has caused a loss to the client, the appraiser shall be held liable for compensation.

 

         Article 16 If anyone of the personnel of industry and commerce administration

have neglected duties, practiced favoritism and engaged in irregularities, the responsible department at the higher level shall impose administrative sanctions; if a crime has been constituted, the criminal responsibility shall be investigated into by the judicial department according to law.

        

         Article 17 These rules shall take effect as of the date of promulgation.


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