Opinions of 8 Ministries (Including the Ministry of Commerce of the People’s Republic of China) on Promoting the Pilot Program on Parallel Imports of Cars

SJF (2016) No.50

The competent departments in charge of commerce, industry and information, public security, environmental protection, traffic & transport, and customs in Tianjin, Shanghai, Fujian Province, Guangdong Province and Shenzhen City as well as all directly subordinate inspection and quarantine bureaus concerned,

The pilot program on parallel imports of cars being launched in the pilot free trade zone (“PFTZ”) is a significant move towards promoting the structural reform in the supply side of the automobile field, accelerating the innovative development of the automobile circulation system and regenerating the automobile market.In order to implement relevant decisions and arrangements of the State Council, accelerate the implementation of policies and measures for the pilot program on parallel imports of cars and promote the substantial results of the pilot program, the following opinions are proposed:

I.Simplifying the application and management system for automatic import license of auto products.The pilot enterprise for parallel-imports cars (the “Pilot Enterprise”) is not required to obtain the authorization of the automobile suppliers during the import of cars and establishment of distribution network and may apply for the automatic import license of auto products based on their actual demands in business activities.The Pilot Enterprise is required to hand over the license to the Customs for examination and go through the declaration formalities in accordance with relevant provisions on the automatic import license management.

II.Deepening the reform in the compulsory product certification of parallel-imported cars. Such cars must meet the compulsory provisions of national relevant safety, energy-saving, quality standards and technical specifications and obtain the compulsory product certification (CCC) stipulated by national laws and regulations.For the Pilot Enterprise establishing a complete family-car “three-guarantee” and recall system, the requirements for providing the authorization documents of the original factory for purpose of application for CCC may be loosened. For those effectively maintaining the consistency of cars, the requirements of certification mode for non-mass-produced cars on the number may be cancelled. For those meeting the industrial policies and customs, inspection and quarantine related provisions, effectively maintaining the consistency of cars and only carrying out the standard compliance corrections in the PFTZ, only the factory inspection may be required for the CCC of the place where the corrections are made in the PFTZ, as the case may be.

III. Further improving the trade facilitation of parallel imports of cars.The procedures for customs declaration, clearance, inspection, etc. of the parallel-imported cars will be optimized; the clearance efficiency will be improved and the clearance costs will be reduced. The price appraisal mechanism for parallel-imported cars will be optimized. In the PFTZ where the pilot program on parallel imports of cars is approved, the Pilot Enterprise will be permitted to develop the finished automobile bonded warehousing business in the special customs supervision areas, with a term of 3 months, without extension permitted.

IV. Actively promoting the disclosure of information on environmental protection and maintenance of parallel-imported cars.The Pilot Enterprise is required to publish the information on pollution control technology for their imported motor vehicles to the public in accordance with the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution and the Administrative Measures for Disclosure of Automobile Maintenance Technical Information, and indicate the level of compliance with the emission standards in China.Vehicles failing to meet the current emission standards in China shall not be imported and sold.

V.Enhancing the registration management services for parallel-imported cars.The public security departments in different regions shall register the imported automobile in strict accordance with the Safety Specifications for Motor Vehicles Operating on Roads (GB7258) as well as other national technical standards for safety, focusing on the inspection of the identification code, product nameplate, odometer, external lighting, signal device, etc. of the parallel-imported cars.In case of any parallel-imported car failing to meet the national standards, the registration shall be refused and a report shall be made to the local commerce department, inspection and quarantine department, etc.For qualified cars, the registration shall be accepted based on optimized services, improved efficiency and simple and convenient procedures.

VI. Focusing on the establishment of quality tracing and after-sales service system.The Pilot Enterprise is the subject of legal responsibility for the quality tracing of parallel-imported cars, fulfilling the obligations of product recall, quality guarantee, after-sales service, family-car “three-guarantee”, average fuel consumption checking, etc. in accordance with laws.The Pilot Enterprise shall improve the after-sales guarantee capability and feasibly guarantee the consumers’ legal rights and interests.The after-sales service (including maintenance) network covering the entire sales area shall be established by means of self-establishment, resources sharing, multi-channel cooperation, etc., so that consumers will enjoy convenient, time-saving and effective after-sales service.

VII.Strengthening supervision effectively.According to relevant documents of the State Council, the local people’s government in the area where the pilot program is launched shall strengthen the organization and leadership, specify the subject of legal responsibility, carefully arrange all pilot work and effectively prevent and control various risks.The after-sales maintenance support capability and compliance with laws shall be taken as important conditions for selecting the pilot enterprises.The supervisory responsibilities shall be fulfilled effectively; the innovation on supervision method shall be made; relevant management provisions shall be well developed; and the in-event and after-event supervision shall be strengthened, so that the pilot work will be carried out orderly to standards.In case of any operation violating laws and regulations, greater efforts shall be devoted to investigation. The pilot enterprise concerned shall be immediately disqualified. The remedial work shall be made.The results shall be kept in the enterprise credit archive and made known to the public.

The pilot areas are required to further deepen their understanding, enhance their work initiative, pertinence and effectiveness, and make innovation on system design and mechanism construction, in a bid to create favorable policy environment for the pilot work.The useful practices should be carefully summed up to provide reproducible and propagable reform and innovation achievements as soon as possible.A timely report on the pilot work progress should be made to the department concerned of the State Council.

Ministry of Commerce     Ministry of Industry and Information Technology

Ministry of Environmental Protection  Ministry of Transport of People’s Republic of China

General Administration of Customs     State General Administration of Quality Supervision, Inspection and Quarantine

Certification and Accreditation Administration of the People’s Republic of China

22.02.16