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The plan of Automobie-countryside of would be implemented in March the highest subsidy for vehicle would be 5 thousand RMB per vehicle

Source: Author£ºadmin Hits£º9175 Time£º2009/5/4 20:20:20
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According to "Notice of State Council on printing the plan of adjusting and advancement of the automobile industry” (National Development [2009] 5), “Opinions on invigorating ciculation and expanding the consumption” issued by the General Office ofState Council " and determination on the subsidy channels for regulating the motorbike into vehicles go to the countryside published by 51th executing meeting of the State Council, the embodiment of automobile & autobike -countryside plan is as follows:

First, the objective of policy

The aim of the automobile & motorbike countryside plan is to improve the purchasing power of farmers, improve the living condtion of the farmer, speed up the upgrading of technology of motorbike, achieve the optimization and upgrading of the motorbike industry and realize the coordinated development of internal and external requirements.

Second, the content of the policy

(A) Subsidy behavior and its objects

1,From March 1,2009 to December 31, farmers should scrap the three wheeled vehicle or  low-speed truck and turn to buy light trucks (hereinafter referred to buy light trucks). The Subsidized light trucks are limited to 1 vehicle per family. The owner of the light truck would be the same person with the one who scraps the old vehicle.

2, From March 1st 2009 to December 31, farmers should buy light passenger vehicle which displacement is less than 1.3 Liter. The Subsidized light passenger vehicle are limited to 1 vehicle per family.

3. From March 1st 2009 to December 31, farmers should buy motorbikes. The Subsidized motorbikes are limited to 2 sets per family.

The three wheeled vehicle refers to original three-wheeled farm vehicle; low-speed vehicle refers to original four-wheel agricultural vehicles; the light trucks specified in this program referred to light trucks which total mass is more than 1.8 tons but less than 6 tons, and the loading use vehicle should have at least four wheels; the light passenger vehicle specified in this program referred to light passenger vehicle which displacement is less than 1.3 Liters and the carrying passenger use vehicle should have at least four wheels; (excluding cars).

(B) Determination of subsidized products and enterprises  All the light trucks, light passenger vehicles and motorbikes, which pass the National Compulsory Certification and meet the requirements list in "vehicle manufacturers and product announcement" published by the Ministry of Information Industry, can be used as subsidy models; Manufacturers, which produce the production mentioned above and agreed to be responsible for the product quality, distribution outlets, after-sales service, price, sales statistics, policy propaganda and other works, could take part in the production and selling of the subsidized automobile and motorbike products. The user who change and purchase the subsidized light truck should scrap the three-wheeled vehicle and low speed truck in advance according to relevant National regulations. The owner should provide essential parts of the vehicle and pass the vehicle to incorporated vehicle recycling enterprises for disassemble, then the user would get the recycling certificate of the scraped car and the write off certificate of motor vehicles.

(C) Ratio and the amount of subsidies

1. For the user who scrap the three wheeled vehicle or low-speed trucks and purchase a light truck, the government would give a subsidy which account in 10% of the sales price of the light truck, if the unit price of the light truck is greater than 50,000 RMB, the subsidy would be fixed 5,000 RMB per vehicle. At the same time, a fixed subsidy would be granted to the scrapped three wheeled or low-speed vehicle. The scrapped subsidy granted to three-wheeled vehicle is 2,000 RMB per vehicle while the one granted to scrapped low speed vehicle is 3,000 RMB per vehicle.

2. For the user who purchases a light passenger vehicle, the government would give a subsidy which account in 10% of the sales price of the light passenger vehicle, if the unit price of the light truck is greater than 50,000 RMB, the subsidy would be fixed 5,000 RMB per vehicle.

3. For the user who purchases a motorbike, the government would give a subsidy which account in 13% of the sales price of the motorbike, if the unit price of the motorbike is greater than 5,000 RMB, the subsidy would be fixed 650 RMB per motorbike.

(D) sources of subsidized fund

Subsidies would be beard by central and provincial finance, and 80% of which is beard by the central finance while 20% is beard by provincial finance. As for autonomous regions of ethnic minorities such as Xinjiang, Inner Mongolia, Ningxia, Tibet and Guangxi as well as the 51 disaster counties involved in "5.12 Wenchuan Earthquake", the subsidy which should be beard by local finance would be totally beard by the central finance. Further more, these areas could increase the subsidize ratio of automobiles, motorcycles in accordance with their financial situation.

(E) Declaration of the subsidized funds
The farmer, who scrapped scrap the three wheeled vehicle or low-speed trucks and purchase a light truck, could declare the subsidized funds at local financial department of residence registration. The farmers should provide following information: recycling certificate of the scraped car, the write off certificate of motor vehicles, invoice of the new purchased motor vehicle, Residence book, Identification Card of the buyer, or Resident certification issued by public security organ, savings account passbook of the buyer (it can be substituted with savings account passbook for direct grain subsidy).

The farmer, who purchases a motorbike or light passenger truck, could declare the subsidized funds at local financial department of residence registration. The farmers should provide following information: vehicle registration certificate or Motor Vehicle Register Certificate issued by vehicle supervision department of public security organ, sales invoice of motor vehicle, Residence book, Identification Card of the buyer, or Resident certification issued by public security organ, savings account passbook of the buyer (it can be substituted with savings account passbook for direct grain subsidy).

When the local financial departments verify the subsidies, in addition to the above-mentioned documents, the user should also provide "Vehicle certificate of leaving the factory of People's Republic of China", which is attached to the vehicle for verification : The vehicle would be verified as " Light Truck" if the first figure list in "vehicle type" is "1" or "3" or "5" and the weight of the truck which listed in "total mass (kg)" is more than 1800kg but less than 6000kg; The vehicle would be verified as " Light Passenger Vehicle" if the first figure list in "vehicle type" is "6" and the displacement of the vehicle listed in "displacement and power (ml / kw) " is less than 1300mL;

(F) allocation of subsidized funds              
The allocation of the subsidized funds should be "reviewed and paid by financial department of township level" or "reviewed by financial department of township level, paid by financial department of county-level".The local government should adopt the first method as possible as it can in prior of ensuring the security of the funds. After verification on the declaration materials provided by the farmer, the subsidy should be allocated to the saving accounts of the purchaser within 15 days after the farmer addressing application which meets the requirements of granting subsidy. If the application is not meet the requirements after verification, the department should immediately notice the purchaser. If the application meets the requirements of granting subsidy and the funds is "reviewed by financial department of township level, paid by financial department of county-level", the application which is verified as meet with the requirements should be submitted to financial department of county-level;  If the application is not meet the requirements after verification, the department should immediately notice the purchaser; Then the financial department of county level should allocate the subsidy to the saving accounts of the purchaser within 15 days. The subsidy which should be beard by the central finance would be "set aside in advance and be liquidated after the granting". The Ministry of finance would allocate 80% of the total budget which should be beard by central finance to the provincial financial department according to the estimated amounts of subsidy of that province. The provincial financial department would then implement the provincial allocation of funds which should be beard by itself, finally, the subsidized funds is allocated to local financial departments within 15 working days. The subsidized funds should be timely allocated and should be no less than 50% of the total amount, the rest funds would be allocated according to needs. The subsidized funds would be verified through information system of Automobile & motorbike-countryside and would be allocated according to relevant regulations on central payments of the national treasure. The provincial financial department should verify local service condition of the subsidized funds and submit the report to the Ministry of Finance for verification and liquidation.

(G) Supervision and Management
Development and reform departments must strengthen supervision on prices of the car and motorcycle, and take part in the joint supervision and inspection in the country side. Industry and information technology department have to strictly manage the attendance of the products and enterprises involved in the plan. Traffic management departments of public security have to provide convenient and speedy service of handling licenses and registration. The business department should strengthen the supervision on vehicle recycling enterprises, avoid actions such as write falsely the recycling certificate of the scrapped vehicle and so on and regulate and improve the establishing and construction of the vehicle recycling site. Industrial and commercial administration departments should implement strict supervision on the sales market of automobile and motorbike involved in the plan, and protect the legal rights of the consumer. The quality supervision department should pay more attention on the products and enterprises involved in the plan, strictly implement the Compulsory Certificate System and abide the relevant regulation about the three guarantees and recall the products which are defective.

The price of the automobile and the motorbike which enjoy the financial subsidy shall not be higher than the market price of similar products in the same period. And the motor vehicle or motorbike could not be transferred within two years. Local departments of various levels relating financial, development and reform, industry and information technology, public security, commerce, industry and commerce, quality inspection should cooperate with each other and strengthen the supervision and custody on capital subsidies, vehicle scrap, purchase, transfer of ownership and the market order, price, product quality management, etc. and prevent actions such as gain the financial by cheating, and effectively protect the legitimate rights and interests of farmers. No unit or individual may retain misuse; misappropriation and delay the payment of subsidize funds for any reason. Any Breach of the relevant provisions should be lawfully dialed with once verified according to “Financial Infringement and Punishment Regulations" (State Council Decree No. 427) and other provisions; as for the action involved in crime should be transferred to judicial authority.

Third Requirements on organization and implementation

The implementation of the automobile & motorbike-countryside plan is to promote the consumption of stimulating domestic demand, it is an important decision-making of dealing with the international financial crisis, and an important measure to promote the healthy development of the automobile industry as well as an important policy of bring tangible benefits to the farmers and make the farmers more powerful. Governments of all level should pay much attention to this work, it is necessary to strengthen leadership and organization, enhance collaboration among departments, establish accountability mechanisms, with each person responsible for specified tasks, firmly and detailed implement the plan and coordinate all aspects. The operating method should be established according to the actual situation of local areas, and the government should instruct the establishment units to orderly carry our the work, better allocate the supporting funds and urge the relevant department to timely allocate the subsidy to the saving accounts of the farmer. It is necessary to establish supervision system to timely find out, deal with and improve the question. Further more, propaganda, basic research and recommendation for improving the policy are also necessary for truly implementing the policy.