Hua Ke Gong Shang Xin Gui Zi [2021] No. 1               Issued by: Chen Weiwen

Notice of Huadu District Bureau of Science, Industry, Commerce and Information Technology of Guangzhou Municipality on Issuing the Management Rules of Huadu District forthe Trading of Second-hand Motor Vehicle Parts and Components

　　All units directly under the district government, towns and sub-districts:

　　TheManagement Rules of Huadu District for the Trading of Second-handMotor Vehicle Partsand Components have been approved by Huadu District People’s Government and are hereby issued to you for your implementation in light of the realities. Problems encountered in the implementation shall be directly reported to the Huadu District Bureau of Science, Industry, Commerce and Information Technology.

　　Huadu District Bureau of Science, Industry, Commerce and Information Technology of Guangzhou Municipality

　　November 24, 2021

Management Rules of Huadu District for the Trading of Second-hand Motor Vehicle Partsand Components

Chapter I General Provisions

　　Article 1 (Purpose and basis of formulation)To strengthen the management of the trading of second-hand motor vehicle parts and components in Huadu District and promote the healthy development of the trading market of second-hand motor vehicle parts and components, in accordance with relevant laws and regulations, including the Management Measures for the Recycling of Scrapped Motor Vehicles, the Detailed Rules for Implementing the Management Measures for the Recycling of Scrapped Motor Vehicles and the Management Measures for Circulation of Second-Hand Goods, these Rules are hereby formulated in light of the realities of Huadu District.

　　Article 2 (Applicability) These Rules apply to the business activities involving second-hand motor vehicle parts and components in Huadu District.

　　Article 3 (Definition)The “second-hand motor vehicle parts and components” herein refer to the parts and components of motor vehicles (including automobiles, three-wheeled motorcycles, low-speed trucks, trailers and motorcycles), including the engines, steering machines, transmissions, front/rear axles and frames (collectively “Five Assemblies”), and more.

　　The “operators of second-hand motor vehicle parts and components” refer to the enterprises and self-employed businesses that engage in businesses of second-hand motor vehicle parts and components and have registered with the market regulation administration according to law. Other enterprises, such as the motor vehicle recycling and dismantling companies, motor vehicle repair company, and 4S shops, that conduct businesses of second-hand motor vehicle parts and components shall also abide by these Rules.

　　The “trading market of second-hand motor vehicle parts and components” refers to the venue where buyers and sellers can do centralized trading of second-hand motor vehicle parts and components and enjoy services related thereto.

　　Article 4 (Basic principles)The trading of second-hand motor vehicle parts and components shall follow the principles of being honest, trustworthy, fair and open; illegal acts such as adulteration and falsification are strictly prohibited.

　　Article 5 (Responsibilities)The commerce department of the district is the competent department of the second-hand motor vehicle parts and components industry and, as such, will implement supervision and management of the industry of Huadu District and lead the organization of the implementation hereof.

　　The administrative departments of public security, market regulation, transport and ecological environment as well as the towns and sub-districts shall perform their respective regulatory duties.

　　Chapter II TransactionRules

　　Article 6 (Registration)The operators of second-hand motor vehicle parts and components shall have themselves registered as commercial entities with the department for market regulation according to law.

　　Article 7 (Law-based operation)The operators of second-hand motor vehicle parts and components shall operate and pay taxes according to law and cooperate with the supervision and inspection implemented by the related administrative department, towns and sub-districts.

　　Article 8 (Channels of purchase) The operators of second-hand motor vehicle parts and components shall purchase second-hand motor vehicle parts and components from the qualified motor vehicle recycling and dismantling companies and other legal channels.

　　Article 9 (Sales on consignment) The operators of second-hand motor vehicle parts and components that sell second-hand motor vehicle parts and components on consignment shall have the power of attorney and identity certificate of the consignor.

　　Article 10 (Inspection obligation)The operators of second-hand motor vehicle parts and components shall inspect the components purchased or sold on consignment to confirm the legality thereof and seller’s identity and ensure that the seller indeed possesses the ownership of the right of disposal thereof.

　　Article 11 (Disposal of specific components)The “Five Assemblies” that meet the conditions for remanufacturing may be sold to the enterprises with the capability for remanufacturing according to relevant national regulations to be recycled through remanufacturing; those unqualified for remanufacturing shall be sold to a legal smelting or crushing enterprise as waste metals.

　　Tail gas post-treatment devices and hazardous wastes shall be recorded faithfully and turned over to a qualified enterprise for dismantling and disposal rather than sold or resold to other enterprises.

　　Power storage batteries shall be sold to the batter yrecy cling sites that are set up by new energy vehicle manufacturers, or the enterprises that meet the national requirements for managing the echelon utilization of power storage batteries, or the enterprises that engage in the integrated utilization of waste power storage batteries.

　　The operators of second-hand motor vehicle parts and components shall not purchase or sell the parts and components stipulated herein if they have no qualifications for disposal thereof.

　　Article 12 (Quality standard) Before selling the components other than the “Five Assemblies”, the operators of second-hand motor vehicle parts and components shall make sure that the parts and components meet the compulsory national standard for personal and property safety.

　　Article 13 (Prohibited matters) The following second-hand motor vehicle parts and components shall not be sold:

　　(1)Components that are stolen or smuggled goods or suspected stolen or smuggled goods, that are untraceable, that are from unknown source, and that are under unknown ownership or pledge;

　　(2)Objects that are damaged so seriously as to be irreparable, or cannot reach compulsory national standard after repair;

　　(3)Other components that are prohibited from operation and franchise by laws and administrative regulations.

　　Article 14 (Obligation for marking)When they are sold, second-hand motor vehicle parts and components shall be marked “Second-hand” at an obvious position. The other second-hand components than the “Five Assemblies” that are received from the motor vehicle recycling and dismantling enterprises shall be marked as “Components Recycled from Scrapped Motor Vehicles” and be sold to buyers who have been notified of such.

　　Article 15 (Establishment of transaction management ledger) The operators of second-hand motor vehicle parts and components shall establish a transaction management ledger, which shall contain detailed record of their basic characteristics, sources and whereabouts, including their names, models, quantities, sources, stocks, time of sales, prices, identity certificates and contact information of sellers, buyers and consignors.

　　Article 16 (Sale services) The operators of second-hand motor vehicle parts and components shall provide consumers with after-sale services according to law.

　　Article 17 (Issuance of invoices) The operators of second-hand motor vehicle parts and components shall issue invoices according to relevant national regulations, which shall indicate the true transaction prices.

　　Article 18 (Management of trading market)The trading market of second-hand motor vehicle parts and components shall have the requisite supporting service facilities and sites, which shall set up eye-catching notice board and supervision hotline and meet the requirements of laws and regulations for environmental protection.

　　Article 19 (Consumers’ duty to take care)The consumers who wish to buy second-hand motor vehicle parts and components shall visit a formal trading venue and trade with a licensed operator; they shall not buy parts and components that are obviously suspected to be illegal or from an unknown source and cannot be used.

　　Article 20 (Reporting of illegal act) An operator and/or consumer of second-hand motor vehicle parts and components who finds any parts and components that are illegal or from unknown source shall promptly report the same to the public security department of the district and cooperate with the investigation there into.

　　Article 21 (Provisions for motor vehicle repair enterprises)A motor vehicle repair enterprise or a 4S shop shall turn over the replaced accessories and the Five Assemblies of motor vehicles to the consignor to be disposed of as it sees fit. A motor vehicle repair operator shall mark the prices of original accessories, accessories of the same quality and repaired accessories separately for users to choose from.

　　Chapter III Supervision and Management

　　Article 22Huadu District Bureau of Commerce is responsible for managing the second-hand motor vehicle parts and components industry, planning the trading market of second-hand motor vehicle parts and components according to law and guiding its construction.

　　Article 23Huadu District Administration for Market Regulation shall investigate and punish the act of unlicensed operation, conduct inspection on the second-hand motor vehicle parts and components commodities, and implement registration, supervision, management and administrative law enforcement for the trading market of second-hand motor vehicle parts and components.

　　Article 24Huadu District Bureau of Transport shall supervise and manage the repair services provided by motor vehicle repair enterprises.

　　Article 25 Huadu Sub-branch Branch of Guangzhou Municipal Bureau of Public Security shall investigate and punish the illegal acts of failing to provide detailed records of second-hand goods that reflect their basic characteristics, sources and whereabouts and shall crack down on illegal transactions.

　　Article 26 Huadu Sub-branch of Guangzhou Municipal Bureau of Ecology and Environment shall supervise and manage the prevention and cure of the environmental pollution of the operation sites for second-hand motor vehicle parts and components.

　　Article 27 Towns (sub-districts) shall strengthen the everyday inspection of the operation sites of second-hand motor vehicle parts and components and set up the corresponding management body under the principle of territorial jurisdiction, which will be responsible for supervising and managing the operation sites for second-hand motor vehicle parts and components within their local jurisdiction.

　　Chapter IV Legal Liability

　　Article 28 The market regulation department shall investigate and punish the business activities involving second-hand motor vehicle parts and components that are carried out without registration for establishment according to the Measures for Investigating and Punishing Unlicensed Operationsand other relevant laws and regulations.

　　Article 29The public security authority and the market regulation department of the district shall investigate and punish the sale of the second-hand motor vehicle parts and components that are from unknown source, cannot be traced and have no ownership or right of disposal, or the failure to set up the transaction management ledger and record relevant information truthfully and accurately in accordance with relevant laws and regulations, including the Management Measures for Circulation of Second-Hand Goods (For Trial) and the Detailed Rules for Implementing the Management Measures for Recycling of Scrapped Motor Vehicles.

　　Article 30The market regulation department of the district shall investigate and punish the sale of“ Five Assemblies” that are unqualified for remanufacturing, parts and components other than the “Five Assemblies” that are unable to be used, and parts and components other than the “Five Assemblies” that are not marked as “Components Recycled from Scrapped Motor Vehicles” in accordance with relevant laws and regulations, including the Quality Law of the People’s Republic of China, the Management Measures for Recycling of Scrapped Motor Vehiclesand the Detailed Rules for Implementing the Management Measures for Recycling of Scrapped Motor Vehicles.

　　Article 31 The market regulation department of the district shall investigate and punish the acts of selling second-hand motor vehicle parts and components as new products, fakes as genuine components and bad components as good ones in accordance with the Quality Law of the People’s Republic of Chinaand other relevant laws and regulations.

　　Article 32The transport department shall investigate and punish the operators of motor vehicle repair that use fake and shoddy parts in accordance with the Management Regulations on the Repair of Motor Vehiclesand other relevant laws and regulations.

　　Chapter V Supplementary Provisions

　　Article 33 (Interpretation)The Huadu District Bureau of Science, Industry, Commerce and Information Technology shall join the other related departments in the interpretation of these Rules.

　　Article 34(Effective Date)These Rules shall be implemented on the date of promulgation and shall remain in force for three years.