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Circular on the Implementation of Trade-in Motor Vehicles

Source: China Association of Automobile Manufacturers Author£ºadmin Hits£º9583 Time£º2009/7/30 11:12:11
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Provinces, Autonomous Regions, Municipalities Directly under the Central Government, Municipalities with Independent Planning Status, and Finance Bureaus authorities in charge of development and reform, industry and information, public security, commerce, industry and commerce, quality supervision of Xinjiang Production and Construction Group:

For the better implementation of the Circular of the General Office of State Council on Forwarding Implementation of Trade-in Motor Vehicles and Appliances in Order to Promote the Expansion of Domestic Demand by Development and Reform Committee and other Departments (Guo Ban Fa [2009] No. 44) and the subsidy policy of Trading-in Motor Vehicles, the Implementation of Trade-in Motor Vehicles is issued to you, and please comply with it.

Ministry of Finance, Ministry of Commerce, Propaganda Department of the CPC Central Committee, Development and Reform Committee, Industry and Information Technology Department, Public Security, Ministry of Environment Protection, Ministry of Transport, Administration for Industry and Commerce, Bureau of Quality and Technical Supervision

July 13, 2009

Implementation of Trade-in Motor Vehicles

Chapter 1: General Principle

Article 1: The present Measures are formulated to for the better implementation of the Circular of the General Office of State Council on Forwarding Implementation of Trade-in Motor Vehicles in Order to Promote the Expansion of Domestic Demand by Development and Reform Committee and other Departments (Guo Ban Fa [2009] No. 44) and the subsidy policy of Trading-in Motor Vehicles.

Article 2: The term “trade-in motor vehicles” refers to claim the end-of-life vehicles and yellow label vehicles and purchase new ones. Yellow label vehicles refer to the gasoline-fueled cars whose emission is below the Nation ¢ñ Emission Standard and vehicles with diesel engines whose emission is below Nation   ¢ó Emission Standard. Three-wheeled and low-speed motor vehicles are not included in the vehicles mentioned above.

Article 3: The term trade-in subsidy for motor vehicles (hereinafter referred to as subsidy) is the special subsidy for the trade-in of motor vehicles arranged from the general budget by central financel.

Article 4: Based on different responsibilities and regulations given in this principle, Ministry of Commerce, together with Ministry of Finance, Propaganda Department of the CPC Central Committee, Development and Reform Committee, Industry and Information Technology Department, Public Security, Ministry of Environment Protection, Ministry of Transport, Administration for Industry and Commerce, Bureau of Quality and Technical Supervision and other related departments, is responsible for the organization of this trade-in project and guidance for the related local departments.

Ministry of Commerce, together with other related departments, is responsible for the organization of this trade-in project and gives instructions to the business competent authorities to recycle the scrapped motor vehicles and sell the new ones.

Ministry of Finance is responsible for financing, distribution, implementation and monitoring of subsidies.

Ministry of Public Security is responsible for guidance and supervision of traffic management departments, whose main tasks are to register new cars and the cancellation scrapped motor vehicles, and issue Deregistration Certificates of Motor Vehicles.

Ministry of Environmental Protection is responsible for the recognition and identification of Yellow label vehicles, and supervision of scrapped vehicles’ dismantling and processing.

Propaganda Department of the CPC Central Committee, Development and Reform Committee, Industry and Information Technology Department, Ministry of Transport, Administration for Industry and Commerce and Bureau of Quality and Technical Supervision should strengthen supervision and management within their authorities.

Article 5: Business competent authorities of Provinces, Autonomous Regions, Municipalities Directly under the Central Government, Municipalities with Independent Planning Status and Xinjiang Production and Construction Group (hereinafter referred to as provincial departments in charge of business), together with departments of finance, public security, environment protection and others, are responsible for specific implementation of trading in motor vehicles.

Chapter 2: Conditions and Standards of Subsidies

Article 6: Conditions: From June 1, 2009 to May 31, 2010, vehicle owners should turn over their motor vehicles in accordance with the following standards to appointed businesses and purchase new ones (the old vehicle’s owner and the buyer should be the same person):

(I) Old mini trucks used less than 8 years and old medium-sized passenger vehicles for rental;

(II) Old medium-sized and light trucks used less than 12 years;

(III) Old medium-sized passenger vehicles used less than 12 years (taxi not included);

(IV) Compared with the service time regulated in Service Time Regulated by Rules for Eliminating the Motor Vehicles (See attachment 1 for details), all Yellow label vehicles scrapped ahead of time;

Owner of yellow label vehicles can log on the Vehicle Emission Control Center to get detailed information, whose website is www.vecc-mep.org.cn.

Useful life of a vehicle begins with its registration date and ends with its cancellation date.

Article 7: Owners who meet the following conditions at the same time must choose one type of subsidy:

(I) Those who accord with the corresponding requirements of the fourth paragraph of Article 6 and one of the first three paragraphs of Article 6;

(II) Those who accord with the third or fourth paragraph of Article 6, and requirements of subsidy standard announcement of trade-in project in 2009 (announcement of Ministry of Finance and Ministry of Commerce, [2009] No.20)

Article 8: Those who have reported the yellow label vehicles as worthless and bought new ones, which have enjoyed that passenger vehicles with 1.6 liters or below shall be levied at the reduced rate of fifty percent that regulated in the Tax on Vehicle Purchases, will enjoy no subsidies.

Article 9: Those who report old motor vehicles and yellow label vehicles as worthless and buy new ones will get subsidies according to the following standards:

(I) Subsidy standards for old scrapped motor vehicles:

6000 yuan for every scrapped medium-sized truck;

5000 yuan for every scrapped light truck;

4000 yuan for every scrapped mini-truck;

5000 yuan for every scrapped medium-sized passenger vehicle

(II) Subsidy standards for old scrapped yellow label vehicles:

6000 yuan for every scrapped medium-sized truck;

5000 yuan for every scrapped light truck;

4000 yuan for every scrapped mini-truck;

5000 yuan for every scrapped medium-sized passenger vehicle;

4000 yuan for every small passenger vehicle (car not included);

3000 yuan for every mini passenger vehicle (car not included);

6000 yuan for every car, heavy truck, large passenger vehicle and special operation car

Provincial departments of finance, together with departments in charge of business, can adjust the subsidy standards of yellow label vehicles based on specific conditions concerning type, service time, city administration and so on of local yellow label vehicles, let the public informed in time and report to Ministry of Finance and Ministry of Commerce for record after getting approved by the provincial government.

Chapter 3: Vehicle Scrapping and Purchasing, and Application, Check and Grant of Subsidy

Article 10:  Enterprises that bear the work of vehicle recycling and dismantling for the trade-in project should be established by law, with vehicle trade-in Information Management System (hereinafter referred to as information management system) entry conditions and the authority to give the Certificate of End-of-life Vehicle Recycling issued by the provincial (autonomous regions and municipalities) authorities in charge of business.

Article 11: Owners who are about to apply for the subsidy should sell the old or yellow label vehicles that accord with Article 10 to the appointed dismantling and recycling enterprises which meet the requirements mentioned in Article 10. The appointed enterprises should put the related recycling information of the scrapped vehicles into the information management system, dismantle the vehicles in time, give owners the Certificate of End-of-life Vehicle Recycling, turn over motor vehicle registration certificate, number plate, driving permits and the Certificate of End-of-life Vehicle Recycling to the public security organs for cancellation registration within 10 working days and deliver Deregistration Certificates of Motor Vehicles to the owners.

Article 12: Certificate of End-of-life Vehicle Recycling issued by enterprises which are responsible for the dismantling and recycling should have information such as the initial registration date, total mass, length, seating capacity and so on given clear indication in the reference column. The subsidiary receipts should be reported to departments in charge of business for record.

Article 13: Owners should ask for invoices or other materials as proof when buying a new vehicle.

Article 14: Departments of all cities (prefectures), together with departments of finance and environment protection, should provide trade-in windows to deal with application for subsidy. Conditional counties, can also establish trade-in joint windows, which should be located in places where the owners can easily go through the formalities of applying and getting the subsidies.

Departments in charge of business are the leaders in running joint windows, mainly responsible for checking the validity of the Certificate of End-of-life Vehicle Recycling, Application for Trade-in Subsidy (See attachment 2 for details) and other materials, checking the related information about scrapped vehicles in information management system, inputting information of applying and subsidy, scheduling, collecting data and other work.

Departments of finance are responsible for checking whether a vehicle meets the requirements and the standards of subsidy or not, and allocating subsidies to the owners who meet requirements.

Departments of environment protection are responsible for checking and reporting whether a vehicle is a yellow label vehicle or not.

Article 15: Owners of old or yellow label vehicles that meet requirements of Article 6 should apply for subsidy at the trade-in joint windows of regions (cities and prefectures) where their scrapped vehicles are registered, and provide following materials:

(I) Application for Trade-in Subsidy, which can be obtained from the joint windows or the website of Ministry of Commerce;

(II) Original of Certificate of End-of-life Vehicle Recycling;

(III) Deregistration Certificates of Motor Vehicles (an original and a copy);

(IV) The sales invoice of the newly purchased motor vehicle (an original and a copy);

(V) Motor vehicle registration certificate (an original and copy);

(VI) Certificate of Vehicle Purchase Tax Payment (an original and copy);

(VII) Certificates to show one’s identification (an original and copy);

(VIII) A copy of passbook of savings account or certificate of basic deposit account of one’s work unit.

Departments of finance should give the owners the subsidy within 15 working days if they report their old or yellow label vehicles worthless and buy new ones according to the regulations. And for the owners who are not in accordance with requirements, departments of commerce should return their application and give clear explanation.

If owners fail to apply for subsidy in time, his application will not be accepted by the department concerned.

Article 16: Before the opening around of Information management system, auditing and granting of subsidies can be carried out with paper-based forms.

Chapter 4: Management of Subsidy

Article 17: The central budget will let the local department be responsible for the project of subsidies until it is completed in accordance with the standards set in Article 9. Financing needed in local adjustment of the subsidy standard of yellow label vehicles should be arranged by the local departments of finance.       

Article 18: Departments of finance should set apart some funds for the project previously after    referring to registered number of local yellow label vehicles.

Article 19: Provincial departments of finance and commerce should report the allocation of subsidy to Ministry of Commerce and Ministry of Finance before July 31, 2010. Ministry of Finance should liquidate with the locals based on the actual allocation of subsidy.

Article 20: The use of the left subsidy should be separately provided for in regulations issued by Ministry of Finance and Ministry of Commerce.

Chapter 5: Assurance Procedures

Article 21: Provincial departments of commerce should make overall planning to co-ordinate and guide the rational distribution of enterprises, improve end-of-life vehicle recycling network, support qualified enterprises to extend to counties to establish recycling branches, encourage enterprises to carry out door-to-door service, facilitate the vehicle owners to deliver vehicles and go through formalities, and timely publicize the enterprises that bear the work of dismantling and recycling end-of-life vehicles in the administrative regions and their network lists.

Local departments in charge of business should guide the enterprises of dismantling and recycling to increase input, carry out standardized innovation in accordance with Enterprise Regulation on Recycling and Dismantling of Discarded Vehicles (GB22128-2008), and improve the level of dismantling.

Article 22: Local departments in charge of business should actively communicate and assort with departments of finance and others. Local departments of finance should arrange funds for the establishment of trade-in joint windows, policy propaganda, training programs, printing of related bills of documents, purchase of necessary equipments and other work.

Article 23: Encourage all regions to make related policies and measures according to specific situations to guide the scrapping of old and yellow label vehicles. All the related local policies should be implemented with the trade-in policy.

Chapter 6: Supervision and Management

Article 24: Ministry of Commerce, together with Ministry of Finance, Development and Reform Committee, Industry and Information Technology Department, Ministry of Public Security, Ministry of Environment Protection, Administration for Industry and Commerce, Bureau of Quality and Technical Supervision and other related departments, is responsible for the supervision and management of this trade-in project.

Article 25: All related departments of local governments should intensify the examination, supervision and management of the implementation of trade-in policy, vehicle scrapping, new vehicle purchasing, allocation of subsidies, collection and report of information and other things within their authorities, to make sure safely and timely allocation of subsidy and smooth implementation of subsidy policy.

Article 26: Provincial departments in charge of business should do a good job in keeping the related materials of applying for subsidy in archives, collecting information, and reporting the monthly situation to Ministry of Commerce and making a copy for Ministry of Finance and Ministry of Environment Protection according to Statistics for Allocation of Trade-in Subsidy (See attachment 4 for details) before the third day of next month. Ministry should timely put related information on the net.

Article 27: Local governments at different levels should not make restrictions on the birthplace, brand, and type and so on of the newly-purchased vehicles.

Article 28: For those who sell, forge and alter the Certificate of End-of-life Vehicle Recycling, assemble vehicles and allow the scrapped vehicles to run on roads or into the society, the relevant departments will do the processing in accordance with Management Rules of Discarded Vehicle Recycling (State Council Decree No. 307).

Article 29: Units or individuals who embezzle or defraud of subsidy will be dealt with according to “Financial Illegal activity Punishment Punishment Rule” (State Council Decree No. 427) and so forth.

Article 30: If enterprises that bear the work of vehicle recycling and dismantling violate the rules of this principle, or do not perform its responsibilities and obligations, departments in charge of business can take different measures as punishment in accordance with the seriousness of the cases. The measures include publicizing the violations, eliminating them from the list of recycling enterprises involved in trade-in project, and withdrawing or suspending the distribution of the Certificate of End-of-life Vehicle Recycling.

Chapter 7: Supplementary Articles

Article 31: This law will go into effect on the day of its promulgation. Provincial departments of finance and business can make detailed rules based on this law and specific local conditions, and report to Ministry of Finance and Ministry of Commerce for record.

Article 32: Applying and distribution of subsidy regulated in the No. 20 circular of 2009 by Ministry of Finance and Ministry of Commerce should be carried out in accordance with this law. Owners concerned should provide related materials, and fill out the Application of Subsidy of Old Vehicles’ Scrapping and Updating (See attachment 3 for details). Locals should report the information in accordance with the Statistics of Subsidy of Old Vehicles’ Scrapping and Updating (See attachment 5 for details).

Article 33: The power to interpret these Measures shall remain with the Ministry of Finance, Ministry of Commerce and other related departments.