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Article 1. The present Rules are formulated according to the Price Law of the People's Republic of China for the purpose of regulating the pricing activities of governments, making the pricing activities of governments more scientific, impartial and transparent, and protecting the legitimate rights and interests of consumers and business operators. Article 2. Where the administrative department of pricing or other relevant departments of the people's government at or above the provincial level or the people's government at the municipal or county level authorized by the provincial people's government (hereinafter referred to the pricing organ) sets or adjusts, according to law, the prices of goods and services subject to government-guidance prices or government-set prices (hereinafter referred to pricing activities), it shall be governed by the present Rules. Where it is otherwise prescribed by any law or regulation, such law or regulation shall prevail. Article 3. The state shall implement and gradually improve the market-based pricing mechanism under the control of the macro economy. The scope of government pricing shall be determined according to Article 18 of the Price Law and shall be based on the central and regional pricing catalogues in practice. The pricing catalogues shall be adjusted at an appropriate time according to the social and economic development and shall be publicized to the general public in a timely manner. The pricing activities of the government at the municipal or county level which has been authorized by the corresponding provincial government shall be put under the charge of its inferior affiliated administrative department of pricing. The pricing organ shall set prices according to its legitimate authority and shall not overstep its power in any pricing activities. Article 4. The principles of fairness, openness, impartiality and efficiency shall be upheld in the pricing activities. Article 5. The pricing activities shall be based on the social average cost of relevant goods and services, the market situation of demand and supply, the requirements for national economy and social development as well as social acceptability. Where the price of any good or service is closely related to its counterpart in the international market, the international price shall be referred to. The administrative pricing department of the State Council and its counterparts of the provincial people's governments may, according to different industrial features, determine the concrete principles of and measures for pricing. Article 6. The pricing organs shall set prices at a proper time according to the situation of economic and social development as well as the feedbacks from all social walks. Article 7. Where the pricing organ sets any price, it shall, according to law, go through procedures such as investigation into prices (costs), solicitation for social opinions, collective deliberation, decision on pricing, and announcement. The cost supervisions and inspections, expert argumentations and price hearings required by law shall be carried out according to the relevant provisions. Article 8. Consumers, business operators and the other parties concerned (hereinafter referred to advisors) may put forward suggestions on pricing to the relevant administrative pricing organ. Article 9. The pricing organ may, when setting prices, require the relevant business operators and industrial organizations to provide the relevant materials required by the pricing. Article 10. The pricing organ shall, when setting prices, carry out an investigation into the situation of market supply and demand as well as social acceptability, and make an analysis on the resulting impacts on the relevant industries and consumers. Article 11. The pricing organ shall, when setting prices, carry out an investigation into prices and costs. Where any cost supervision is required according to law, it shall be implemented according to the relevant provisions thereon. Article 12. In the process of setting a price for a commodity or service featured by high professional and technical requirements, the pricing organ shall employ the relevant experts to hold an argumentation. Article 13. Where the pricing organ sets any price and if a hearing is thus required according to law, the pricing department of the government shall hold the hearing and solicit for the opinions of consumers, business operators and the other parties concerned. The specific contents of a hearing shall be governed by the relevant provisions on pricing hearings. Where a hearing is not required by law, the pricing organ may solicit the opinions of consumers, business operators and the other parties concerned by holding a seminar, in written form or via the Internet. Article 14. The pricing organ shall, after performing the procedures prescribed in Articles 10 through 13 of the present Rules, formulate a pricing scheme, which shall indicate the following contents: (1) The prevailing price, the proposed price and the adjustment level per unit; (2) The basis of and reasons for pricing; (3) Where any cost supervision is carried out, a report on cost supervision is thus attached; (4) Where a price is set, the impact thereof on the relevant industries and consumers; (5) Where an experts' argumentation is held, a Summary of Experts' Argumentation Opinions is thus attached; (6) The opinions of consumers, business operators and the relevant parties concerned; (7) Where a hearing is held, A Summary of the Hearing is thus attached; and (8) The time and range for implementing a price. Article 15. A collective deliberation system shall be adopted for pricing, as the general principle. A collective deliberation may be held in the form of deliberation by the price deliberation committee or deliberation by the executive meeting. The form of collective deliberation, composition of personnel and working principles shall be formulated by the pricing organ at or above the provincial level. Article 16. Where the administrative pricing department of the State Council or any other department sets the price of any important commodity or service, it shall be reported to the State Council for approval according to the relevant provisions. Article 17. Where the pricing organ is an industrial administrative department, it shall solicit the opinions of the administrative pricing department at the same level in written form before any decision is made. Article 18. Where a pricing plan has been collectively deliberated and if the relevant pricing is deemed as necessary, the pricing organ shall, at a proper time, make a decision on pricing, which shall indicate the following contents: (1) The item subject to pricing and the proposed price; (2) The basis for pricing; (3) The time and range for implementing the price; and (4) The name of the pricing organ that makes the decision and the day where the decision is made. The seal of the pricing organ that makes a decision on pricing shall be affixed onto a Decision on Pricing. Article 19. Unless any state secret is involved, where a decision on pricing is made, the pricing organ that has made the decision shall publicize it to the general public on the designated newspapers and websites. Article 20. The pricing organ shall establish and improve an internal supervision and restriction mechanism for pricing. The administrative pricing department at a higher level shall take charge of supervision over the pricing activities of its inferior administrative pricing departments. Any pricing activity conducted by the administrative industrial department shall be subject to the supervision of the administrative pricing department at the same level. Article 21. In case any advisor is involved in a pricing activity, the pricing organ shall, in a proper way, inform the relevant advisor of the treatment on his advice. Article 22. Where any decision on pricing is implemented, the pricing organ shall conduct follow-up investigation and supervision on the implementation of the relevant pricing decision. The follow-up investigation and supervision shall include the following contents: (1) The implementation of the price and the existing problems thereabout; (2) The business operation, costs, productivity and the impact on the price incurred from the fluctuation of the market situation of supply and demand; (3) The market situation of supply and demand of the relevant goods or services as well as the price fluctuation; and (4) The opinions of all social walks on the price set. Article 23. Where the pricing organ has any law-breaking act, the administrative pricing department of the government shall carry out the corresponding investigation and punishment according to the Price Law. Article 24. Where any functionary of the pricing organ has any law-breaking act in the pricing activity and thus constitutes a crime, he shall be subject to criminal liabilities according to law. Where a crime is not constituted, he shall be given an administrative sanction according to law. Article 25. The pricing organ shall, according to the administrative rules for archival filings, establish pricing files and put them on record. Article 26. The administrative pricing department of a province, autonomous region, or municipality directly under the Central Government may, according to the present Rules and in combination of the local situation, formulate the detailed rules for implementation. Article 27. The power to interpret the present Rules shall remain with the National Development and Reform Commission. Article 28. The present Rules shall come into force as of May 1, 2006. The Government Pricing Activities Rules (Trial) promulgated by the National Development and Reform Commission on December 16, 2001 shall be simultaneously abolished. |
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