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Provisions of Shanghai Municipality on the Administration of Used Motor Vehicle Trading
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| (Promulgated by the Shanghai Municipal Government on August 1, 1997) Article 1 (Purpose) The present Provisions are formulated in the light of the specific circumstances in this Municipality, for the purposes of strengthening the administration of used motor vehicle trading in this Municipality and of maintaining the trading order. Article 2 (Definition) The used motor vehicles described in these Provisions refer to various kinds of automobiles, motorcycles, tractors, wheeled machine vehicles for special purposes, etc. that have already been registered with the traffic control department of the public security bureau. The trading market of used motor vehicles (hereinafter referred to as the trading market) described in these Provisions refers to the organization, which is approved by the government's competent department, provides place, facilities and information service for the trading of used motor vehicles, and performs its relevant duty. Article 3 (Scope of Application) These provisions apply to the trading activities and administration of used motor vehicles in the administrative region of this Municipality. Article 4 (Administrative Departments) Shanghai Municipal Economic Commission (hereinafter referred to as MEC) together with Shanghai Municipal Planning Committee (hereinafter referred to as MPC) are responsible for the following work concerning used motor vehicle trading and administration in this Municipality: 1. To work out the layout plan of trading markets in this Municipality; 2. To examine and approve the establishment of trading markets in this Municipality; 3. To coordinate the interrelations of the relevant administrative departments in the trading activities of used motor vehicles; The public security, industrial and commercial administrative departments, etc. in this Municipality shall undertake the relevant supervisory and administrative work of used motor vehicle trading in accordance with their respective lawful responsibilities. Article 5 (Centralized Trading) The trading of used motor vehicles shall be carried out in the trading markets approved by the law. Article 6 (Conditions for the Establishment of Trading Markets) The establishment of a trading market shall have the following conditions: 1. According with the layout plan of trading markets in this Municipality; 2. Having space for the trading and parking of used motor vehicles; 3. Having a standard constitution for a trading market; 4. Having qualified business personnel for used motor trading; 5. Being able to provide the services of the handling of trading certificate and license, vehicle inspection and testing, and price appraisal, etc. 6. Other conditions stipulated by laws, rules and regulations. Article 7 (Application, Examination and Approval of the Establishment of Trading Markets) Any unit that wants to set up a trading market shall submit an application to MEC which shall, together with MPC, make a decision within 60 days after receiving the application; the unit that is granted an approval to set up a trading market can start business only after going through the procedures for registration with the municipal administrative department of industry and commerce in accordance with the law. Article 8 (Responsibilities of a Trading Market) The trading market shall have the following responsibilities: 1. To provide trading conveniences and relevant services; 2. To examine the eligibility of the entity engaged in used motor vehicle trading in the market; 3. To formulate the market regulations and trading rules; 4. To mediate any disputes occurring between the two trading parties; 5. To deal with any violations in accordance with the market regulations; 6. To perform other necessary duties in accordance with the law. No trading market shall participate in the used motor vehicle trading activities. Article 9 (Trading Conditions) The used motor vehicles for trading shall meet the following conditions: 1. Meeting the requirements in safety and technology stipulated by the State or this Municipality in the service life, mileage and type of the vehicles; 2. Having passed the test by the traffic control department of the public security bureau. Article 10 (Trading Modes) The following modes can be adopted in the trading of used motor vehicles: 1. Direct transaction between the transferor who has a used motor vehicle (hereinafter referred to as "the transferor") and the transferee who needs a used motor vehicle (hereinafter referred to as "the transferee"); 2. Sale and purchase of used motor vehicles through an agent entrusted in writing by the transferor or transferee; 3. Consignment sale of a used motor vehicle by the transferor in the trading market. Trading of used motor vehicles in the mode of auction shall be carried out in accordance with the provisions of the Law of the People's Republic of China on Auction and the relevant rules and regulations. Article 11 (Qualifications for an Agent) The agent engaged in the used motor vehicle trading activities shall meet the following qualifications: 1. He shall get registered according to the law and have the agent business for used motor vehicle trading; 2. He shall admit and abide by the regulations of the trading market. Article 12 (Main Contents of an Agency Contract) The following contents shall be included in an agent contract signed by the transferor or transferee on the one side and the agent on the other: 1. Conditions of the used motor vehicle; 2. Price and its floating range; 3. Commission; 4. Settlement of a dispute in case of any; 5. Other terms agreed on by both parties. Article 13 (Trading Price) Except for what is stipulated otherwise by the State or this Municipality, the trading price of used motor vehicles in the market shall be decided for themselves by the trading parties. When the transferor or transferee of a used motor vehicle disputes over the trading price of a used motor vehicle, he/she can entrust a qualified appraisal institution with the work of appraising the used motor vehicles, and the appraisal can be regarded by both parties as a reference price. Article 14 (Procedures of Transferring License and Plate Ownership or Changing the Registration Place) Upon the conclusion of a transaction of a used motor vehicle, the trading market shall be responsible for the procedures of transferring certificate and license ownership or changing the registration place of the used motor vehicle. Article 15 (Fees) Upon the conclusion of a transaction of a used motor vehicle, the transferor shall pay a commission to the trading market. The commission rate shall be appraised and approved by the municipal price control department. Article 16 (Disposition of Unauthorized Trading Markets) The administrative department of industry and commerce shall inflict a penalty on anyone who sets up a trading market without authorization. Article 17 (Disposition of Illegal Activities of Trading Markets) Any trading market that fails to do its relevant duty or engages itself in the used motor vehicle trading activities shall be ordered to correct within the time stipulated by the administrative department of industry and commerce; failing to do so, it shall be given a warning, and even a penalty not exceeding 30,000 yuan. Article 18 (Disposition of Transactions Violating Regulations) If a transaction of a used car vehicle is concluded without authorization outside a trading market, the administrative department of industry and commerce shall not allow it to go through the license verification procedures, nor shall the public security department allow it to go through the ownership transfer or registration place transfer procedures. Article 19 (Punishment Procedures) When an administrative punishment is imposed, the administrative department of industry and commerce shall issue a verdict for the administrative punishment. When a penalty is collected, it shall issue a receipt printed by the municipal department of finance. The penalties shall be handed in to the State treasury according to the regulations. Article 20 (Reconsideration and Litigation) Refusing to accept a specific administrative act, the party concerned can apply for an administrative reconsideration or take administrative legal proceedings in accordance with the provisions of the Regulations of Administrative Reconsideration and the Administrative Litigation Law of the People's Republic of China. If the party concerned neither applies for a reconsideration, nor takes legal proceedings, nor carries out the specific administrative act, the department taking that specific administrative act can apply to the people's court for enforcement in accordance with the provisions of the Administrative Litigation Law of the People's Republic of China. Article 21 (Disposition of Relevant Issues after the Provisions Become Effective) If any used motor vehicle trading units set up before these Provisions become effective want to continue their business of used motor vehicle trading, they shall complete the relevant procedures in accordance with these Provisions within the time stipulated by MEC and MPC and carry out their business in the trading markets established according to the law. Article 22 (Department for Interpretation of Application) MEC together with MPC shall be responsible for the interpretation of the implementation of the present Provisions. Article 23 (Date of Implementation) These Provisions shall become effective on November 1, 1997. |
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