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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II THE ADMINISTRATION ON RECALL OF DEFECTIVE AUTOMOBILES CHAPTER III DUTIES OF THE OPERATORS AND ALL THE RELEVANT PARTIES CHAPTER IV THE REPORT, INVESTIGATION AND CONFIRMATION ON DEFECTS OF AUTO PRODUCTS CHAPTER V PROCEDURES FOR VOLUNTARY RECALL OF DEFECTIVE AUTO PRODUCTS CHAPTER VI THE MANDATORY RECALL PROCEDURE FOR DEFECTIVE AUTO PRODUCTS CHAPTER VII PROVISIONS ON PUNISHMENT CHAPTER VIII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The present Provisions are hereby formulated in accordance with the Product Quality Law of the People's Republic of China and other laws for the purpose of strengthening administration on matters concerning the recall of defective auto products, eliminating the danger caused by defective auto products to the safety of the body and property of users and general public, and maintaining public security, public interests and social economic order. Article 2. The present Provisions shall be applicable to the activities of production, import, sales, leasing and repair of auto products within the territory of the People's Republic of China. Article 3. The manufacturers or importers of auto products shall perform duty of recalling the defective auto products they have produced or imported according to the present Provisions, and bear the expenses for eliminating the defects and the necessary transportation fees. The sellers, leaseholders, and repairers of auto products shall assist the manufacturers in performing their duty of recall. Article 4. Where any auto product having been sold has any defect mentioned in the present Provisions, the manufacturers shall organize to implement the recall of defective auto products in accordance with the requirements for voluntary recall or mandatory recall procedures prescribed in the present Provisions. The state shall, in pursuance of the demand of economic development and requirements for auto industry administration, implement the system of recalling defective auto products step by step according to the kinds of the auto products. The state encourages the auto product manufacturers to carry out recall activities on other quality issues of auto products other than the defects by referring to the present Provisions. Article 5. The "auto products" mentioned in the present Provisions refer to the road vehicles used for carrying passengers or goods, which are driven by power or under traction according to the provisions of state standards. The "defects" mentioned in the present Provisions refer to the irrational danger with the identity characteristic that widely exists in a certain batch, type or class of auto products due to the design or manufacture, which may endanger the safety of body or property, or the circumstances not in conformity with the relevant state standards for auto safety. The "manufacturers" mentioned in the present Provisions refer to the enterprises registered within the territory of China, which manufacture or assemble auto products and in whose name the certificate of conformity is issued, and the foreign enterprises that have sold auto products they produced or assembled to the territory of China. The "importer" mentioned in the present Provisions refers to the enterprise that imports auto products to the territory of China from abroad. The importer shall be regarded as the manufacturer of auto products. The "seller" mentioned in the present Provisions refers to the enterprise that sells auto products, and collects payment for goods and issues invoices. The "leaseholder" mentioned in the present Provisions refers to the natural person, legal person or other organization that provides auto products for the use of other people and collects rent from them. The "repairers" mentioned in the present Provisions, shall refer to the enterprises or individuals that provide maintenance or repair services for auto products. The manufacturers, importers, sellers, leaseholders and repairers mentioned in the present Provisions shall be called by a joint name as "operators". The "owners of vehicles" mentioned in the present Provisions refer to the natural person, legal person or other organization that enjoys by law the ownership or use right of auto products without the purpose of resale. The "recall" mentioned in the present Provisions refers to the process of eliminating the defects of auto products that may lead to personal injuries or property losses by the manufacturers (including the importers, the same hereinafter) by way of repairing, replacing or taking back the defective auto products according to the procedures required by the present Provisions. CHAPTER II THE ADMINISTRATION ON RECALL OF DEFECTIVE AUTOMOBILES Article 6. The State Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to the competent department in charge) shall be responsible for the work of organization and administration of the recall of defective autos nationwide. The National Development and Reform Commission, the Ministry of Commerce, and the Customs General Administration and the relevant departments of the State Council shall cooperate with the competent department in charge to carry out the relevant work concerning the administration of defective autos within the scope of their respective functions. The department of quality and technology supervision of all provinces, autonomous regions, and municipalities directly under the Central Government and all the inspection and quarantine institutions directly under the competent departments in charge (hereinafter referred to the local administration institutions) shall be responsible for the work of supervision over the recall of defective autos within their own administrative districts. Article 7. The term for recall of the defective auto products, in case of assembly, shall be the period from its delivery to the first owner of the vehicle to the period of safety use instructed by the auto manufacturer. If the auto manufacturer fails to clarify the period of safety use, or the period of safety use is less than 10 years, the term shall be 10 years after the date when the seller delivers the auto product to the first owner of the vehicle. The use period clearly indicated for the components and parts in the safety components and parts of auto products that are easily damaged shall be the time limit for their recall. And the time limit for recall of the auto tyres shall be 3 years from its being delivered to the first owner of vehicles. Article 8. The following principles shall be included for judging the defects of auto products: (1) The safety capability is not in conformity with the relevant technical regulations and state standards for auto safety after the check by the checking institutions; (2) Having caused a body or property damage to the owner of autos or other persons due to the defects in design or manufacture; and (3) Although it does not cause the body or property damage to the owner of the auto or other person, the defects may possibly lead to the body or property loss under special circumstances after testing, experimenting and reasoning. Article 9. The recall of the defective auto products shall be carried out in light of two kinds of procedures including the voluntary recall by the manufacturer and the mandatory recall by the competent department in charge. In case the defects are found out by the manufacturers themselves, or through internal information system of an enterprise, or through the report and customers' complaints of the sellers, repairers and owners of the automobile on the defects of auto products, or through the relevant notices of competent departments in charge and other ways, the manufacturers may put the recall plan on records at the competent departments in charge and implement recall the defective auto products in accordance with the voluntary recall procedures of the present Provisions. In case the manufacturers know of the existence of the defects but fail to take voluntary recall actions, or the manufacturers conceals the defects of the products purposely, or handle the product defects in an unsuitable way, the competent departments in charge shall require the manufacturers to recall the defective auto products in light of the provisions of the mandatory recall procedures. Article 10. The competent departments in charge shall, together with the relevant departments of the State Council, organize to establish information system for defective auto products, and be responsible for collecting, analyzing or handling information on relevant defects. The operators shall report the relevant information on defects of auto products to the competent departments in charge and to the information reporting system they established. Article 11. The competent departments in charge shall engage experts to form an expert committee, which shall make investigation and accreditation on the defects of auto products. The competent departments in charge may, upon the suggestion of the expert committee, entrust the institutions for inspection of the auto product quality, which are approved by the state, to make technical testing on the relevant defects of auto products. The expert committee shall be responsible for the competent departments in charge. Article 12. The competent departments in charge shall make supervision over the recall process made by manufacturers and deploy the local administration institutions to make supervision over the work of the relevant recall upon the need of the work. Article 13. The manufacturers or the competent departments in charge shall publicize the information concerning the defects that exist in the auto products and that have been confirmed and the relevant information on implementation of recall to the society on the media designated by the competent departments in charge. Article 14. The information on recall of defective auto products issued through the defective auto product information system and by the designated media shall be objective, fair, and complete. Article 15. The competent departments undertaking the administration on recall of defective auto products and the local institutions, expert committee, inspection institutions and the personnel thereof shall abide by the principle of justness, objectiveness, fairness and legality in the process of investigation, accreditation and inspection, shall keep the technical secret of the relevant enterprises and the secrets of the relevant investigation and inspection on defects. No one may reveal the relevant information without permission and approval of the competent departments in charge. CHAPTER III DUTIES OF THE OPERATORS AND ALL THE RELEVANT PARTIES Article 16. The manufactures shall, in accordance with the provisions of the state standard of "Number for Identification of Road Vehicles" (GB/T16735гн16738) , label the permanent vehicle identification number (VIN) for each vehicle before it leaves factory. They shall establish and keep the relevant archives for recording vehicles and owners of vehicles. And the preceding data shall be put on records at the institutions designated by the competent departments in charge at any time (See Attachment I). The manufacturers shall establish management system for collection of product quality issues and for analysis on product defects, and keep the relevant records. The manufacturers shall establish system of notification for technical service information on auto products, specifying the methods for eliminating the relevant vehicle troubles, maintaining or repairing the vehicle, so as to serve the owners of vehicles, sellers, leaseholders or repairers. The contents of notification shall be put on records at the institutions designated by the competent departments in charge. The manufacturers shall cooperate with the competent departments in charge in making investigation into the defects that may exist in their products, provide the relevant data required for the investigation and assist in making necessary technical inspection. The manufacturers shall report the defects of their auto products to the competent departments in charge, and shall not treat the defects of their auto products in improper means. The manufacturers shall provide the documents prescribed in Attachments III and IV of the present Provisions to the owners of vehicles, sellers or leaseholders, so as to make it convenient for them to put forward report on defects of auto products they find. Article 17. The sellers, leaseholders, or repairers shall report to the manufacturers and the competent departments in charge the relevant information on defects that may exist in the auto products they find, cooperate with the competent departments in charge in making the relevant investigation, provide the relevant data needed for the investigation, and cooperate with the manufacturers in making the recall of the defective auto products. Article 18. The owners of vehicles shall have the right to file customer's complaints to the relevant departments in charge or to the relevant operators or reflect the defects in auto products, and may propose suggestions to the competent departments in charge on the relevant investigation on carrying out defective products recall. The owners of vehicles shall cooperate with the manufacturers positively in making the recall of the defective auto products. Article 19. Any entity or individual shall have the right to report the defects that may exist in auto products to the competent departments in charge and the local administration institutions. Where the competent departments in charge make investigations into the defects that may exist in auto products, the relevant entity or individual shall cooperate with them. CHAPTER IV THE REPORT, INVESTIGATION AND CONFIRMATION ON DEFECTS OF AUTO PRODUCTS Article 20. Where a manufacturer has confirmed that there are defects in its auto products, it shall report to the competent departments in charge in writing (For the format for the written report, please see Attachment II) within five working days. It shall, at the time of submitting the preceding report, notify the seller to stop selling the defective auto products concerned by effective means within 10 working days, and notify the seller of the contents of the report. The overseas manufacturers shall also notify the importers to stop selling the defective auto products by effective means within 10 working days, and submit the contents of the report to the Ministry of Commerce and notify the importers. Where the sellers, leaseholders or repairers find that there may be defects in their auto products, or receive customer's complaints from the owners of vehicles that there may be defects in auto products, they shall report to the manufacturers and the competent departments in charge in time (For the format of the written report, please see attachment III). Where the owners of vehicles find that there may be defects in auto products, they may file customer's complaints or report to the sellers or the competent departments in charge through effective means (For the format of the written report, please see the Attachment IV). Where any other entity or individual finds that there may be defects in auto products, they shall report to the competent departments in charge by referring to the contents and formats of the preceding Attachments. Article 21. The competent departments in charge shall, after receiving the report in conformity with the Attachment II of the manufacturers on defects existing in auto products, handle it according to the voluntary recall procedures for defective auto products prescribed in Chapter V. Article 22. The competent departments in charge shall, on the basis of the analysis, handling the report and suggestions provided by the information system they designate, notify the information on the relevant defects to the manufacturers in writing if necessary, and require the manufacturers to confirm within a prescribed time limit whether there are defects in their products or not, and whether the products need to be recalled. Article 23. The manufacturers shall, after receiving the notice of the competent departments in charge in accordance with the provisions of Article 22, and having confirmed that there are defects in auto products, submit within 5 working days the report to the competent departments in charge in the format of the written report prescribed in Attachment II, and implement recall in light of the voluntary recall procedures for defective auto products prescribed in Chapter V. In case the manufacturers can prove that there is no need to recall their products, they shall provide detailed reasoning report to the competent departments in charge, who shall then continue to make follow-up investigation. Article 24. Where a manufacturer fails to provide sufficient certificate documents in the reasoning report mentioned in Article 23, or the certificate documents it provides cannot sufficiently prove that there are no defects in its auto products, and fails to implement recall voluntarily, the competent departments in charge shall organize the expert committee to make investigation and appraisal, and the manufacturer may send a representative to explain the reason. The competent department in charge may also entrust the auto quality inspection institutions approved by the state to make inspection on the relevant auto products if they believe that there is necessity to do so. Where the competent departments in charge have confirmed that there are defects in the auto products on the basis of the opinions of the expert committee and the inspection conclusions, they shall notify the manufacturer in writing to implement voluntary recall. And the fees for the relevant appraisal or inspection on the defects shall be borne by the manufacturer. If the manufacturer still refuses to recall voluntarily, the competent departments in charge shall order the manufacturer to implement mandatory recall procedures in light of the provisions of Chapter VI. CHAPTER V PROCEDURES FOR VOLUNTARY RECALL OF DEFECTIVE AUTO PRODUCTS Article 25. Where a manufacturer has confirmed that there are defects in the auto products it produces and sells, and decides to implement voluntary recall, it shall report to the competent departments in charge in light of the requirements prescribed in Article 20 or Article 23 of the present Provisions, and shall formulate in time the recall plan which covers the following basic contents, and submit it to and put it on records at the competent departments in charge: (1) Measures for effectively stopping the continuous production of the defective auto products; (2) Measures for notifying effectively the sellers to stop wholesaling or retailing of the defective auto products; (3) Effectively notifying the relevant owners of vehicles of the specific contents with respect to the defects, and the time, place, and method for handling the defects, etc; and (4) Predicting the effect of the recall objectively and fairly. The overseas manufacturers shall also submit the measures for effectively notifying the importers to stop the import of the defective auto products. Article 26. A manufacturer shall, at the time of putting on records at the competent department in charge, notify the defects in its auto products, and the damage they may cause, and safeguard measures and recall plans for them to the relevant importers, sellers, leaseholders, repairers and the owners of vehicles in effective ways immediately, and notify the sellers to stop selling the relevant auto products, notify the importers to stop importing the relevant auto products. The manufacturers shall set up hot lines to answer the questions of all the parties, and publicize the conditions of defects on the websites designated by the competent department in charge for the general public to consult. Article 27. The manufacturers shall, within one month from the date of submitting the report of Attachment II prescribed in Article 25, formulate notice of recall (see Attachment V), and put it on records at the competent departments in charge, and meanwhile notify the sellers, leaseholders, repairers, and the owners of vehicles, and begin to implement the recall plan. Article 28. The manufacturers shall, after completing the recall of defective auto products planned, submit a summary report on recall to the competent departments in charge within one month (see Attachment IX). Article 29. The competent departments in charge shall make supervision over the voluntary recall action taken by the manufacturers, and make appraisal on recall effect, as well as put forward the handling opinions. In case the competent departments in charge believe that the recall made by the manufacturers fails to achieve the anticipated effect, they may notify the manufacturers to make recall again or take other supplementary measures. CHAPTER VI THE MANDATORY RECALL PROCEDURE FOR DEFECTIVE AUTO PRODUCTS Article 30. Where the competent departments in charge have confirmed that there are defects in auto products through investigation, inspection or appraisal in accordance with the provisions of Article 24, but the manufacturers refuse to make recall, they shall issue a notice of mandatory recall to the manufacturers in time (See Attachment VI). The state departments of certification and accreditation supervision and administration shall order the certification organs to suspend or take back the mandatory certificates of auto products. For the auto products produced overseas, the competent departments in charge shall publicize announcement on suspension of the import of such auto products together with the Ministry of Commerce and the Customs General Administration, and the customs shall stop handling the import entry for such defective auto products. Before the issuance of the announcement on suspension of import of the defective auto products, if the products have been transported to our country and are in transit, or have reached our country but the customs formalities thereof have not been gone through, the importers shall go through formalities for canceling the transportation in light of the relevant provisions of the customs. The competent departments in charge shall, according to the extent of severity of the defects and the urgency for eliminating the defects, decide on whether there is necessity to notify the general pubic of the defects in the relevant auto products and the emergency handling methods for avoiding the occurrence of such damage and other relevant information. Article 31. The manufacturers shall, within 5 working days from the date of receiving the notice of mandatory recall of the competent departments in charge, notify the sellers to stop selling the defective auto products, and within 10 working days release information concerning the notice of the competent departments in charge for the defects in the automobiles. The overseas manufacturers shall also notify the importers within 5 working days to stop importing the defective auto products. In case the manufacturers have any objection to the decision of the competent departments in charge and to other concrete administration act, they may apply for administrative reconsideration or file an administrative litigation. During the periods of administrative reconsideration and administrative litigation, the contents of the notice of the competent departments in charge concerning the manufacturers' recall shall not be implemented temporarily, but the manufacturers shall still perform the duties prescribed in the preceding paragraph. Article 32. The manufacturers shall, within 10 working days from the date of receiving the notice of mandatory recall of the competent departments in charge concerning the defective auto products, submit the relevant documents required by Article 25 of the present Provisions to the competent departments in charge. Article 33. The competent departments in charge shall, within 5 working days after receiving the recall plan for the defective auto products, notify the manufacturer of the examination conclusion. If the competent departments in charge have approved the recall plan, the manufacturers shall, within one month from the date of receiving the notice of approval, make notice of recall of the defective auto products (See Attachment V) according to the approved recall plan, and issue the notice of recall to the sellers, leaseholders, repairers and owners of vehicles, and report it to and it put on records at the competent departments in charge. The notice of recall shall be published for three consecutive periods at the newspapers and periodicals designated by the competent departments in charge, and the term for recall shall be issued continuously on the websites designated by the competent departments in charge. In case the competent departments in charge do not approve the recall plan, the manufacturers shall make revision according to the opinions put forward by the competent departments in charge, and submit the revised recall plan again within 10 working days after receiving the notice till it is approved by the competent departments in charge. Article 34. The manufacturers shall implement recall from the date of issuing the notice of recall and complete it within the time limit of the recall plan. Where the manufacturers fail to complete the recall within the time limit due to justifiable reasons, they shall apply for extension of the time limit to the competent departments in charge, who may then extend the recall term according to the application of the manufacturers. Article 35. The manufacturers shall, from the date of issuing the recall notice, submit a report once in three months on the periodical progress of the recall meeting the requirements of the present Provisions to the competent departments in charge, who may then determine whether the manufacturers shall take more effective recall measures on the basis of the actual effect of the recall. Article 36. The manufacturers shall keep the recall records that are in conformity with the requirements of the present Provisions for each defective automobile whose recall has been completed. The recall records shall be made in duplicates, one shall be kept by the owners of vehicles, and the other one shall be kept by the manufacturers. Article 37. The manufacturers shall submit the summary report on recall (See Attachment IX) to the competent departments in charge within one month after completing the recall planned. Article 38. The competent departments in charge shall make examination on the summary report on recall submitted by the manufacturers, and notify the manufacturers in writing of the examination conclusion within 15 working days. The examination conclusions shall be publicized to the general public. In case the competent departments in charge believe that the recall made by the manufacturers fails to achieve the anticipated effect, they may order the manufacturers to take supplementary measures to make recall again. If the manufacturers have any objection to the examination conclusion, they may apply for administration reconsideration or file an administrative litigation according to law. The decisions of the competent departments in charge may not be executed temporarily during the period of administrative reconsideration or administrative litigation. Article 39. The competent departments in charge shall publicize relevant information such as the recall of defective automobiles, examination conclusions on recall effect, and other relevant information made by the manufacturers within China in time, and have them publicized on the designated websites so as to provide the inquirers with the relevant data. The competent departments in charge shall circulate a report to the Ministry of Commerce and the Customs General Administration on recall of defective automobiles imported. CHAPTER VII PROVISIONS ON PUNISHMENT Article 40. Where a manufacturer violates the provisions of paragraphs 1, 2, 3, and 4 of Article 16 of the present Provisions, and does not undertake the corresponding duties, the competent department of quality supervision, inspection and quarantine shall order it to correct and give it warnings. Article 41. Where any seller, leaseholder, or repairer violates the relevant provisions of Article 17 of the present Provisions, and fails to undertake the corresponding duties, the competent departments of quality supervision, inspection and quarantine may impose punishment such as giving warnings, ordering it/him to correct by taking the circumstances into consideration. If the circumstances are serious, they shall be imposed upon a fine of 1,000 Yuan up to 5,000 Yuan. Article 42. If the manufacturers are under any of the following circumstances, the competent departments in charge shall order them to recall again and circulate a notice of criticism, and impose a fine of 10 thousand Yuan up to 30 thousand Yuan upon them by the competent departments of quality supervision, inspection and quarantine: (1) The manufacturers purposely conceal the severity of the defects; (2) They try to make use of the voluntary recall procedures for defective auto products prescribed in the present Provisions to evade the supervision of the competent department in charge; or (3) The recall of defective products fails to reach the anticipated purpose due to the faults of the manufacturers, which causes the reoccurrence of damage. Article 43. Where the administration institutions undertaking the function of administration on defective autos and their personnel, and personnel entrusted by the administration institutions to make investigation, inspection and determination on the defects practice favoritism and malpractice for private gains, or violate the confidential provisions, they shall be imposed upon an administrative punishment. In case the directly liable person practices favoritism or malpractice for private gains, takes bribes and bends the law, which constitute a crime, he shall be prosecuted for criminal liabilities according to law. Where the relevant experts give false testimony, or the inspectors issue false inspection report, or fake or disseminate false information, their corresponding qualifications shall be suspended. If their action causes damage, they shall undertake the compensation liabilities. If it constitutes a crime, they shall be prosecuted for criminal liabilities according to law. CHAPTER VIII SUPPLEMENTARY PROVISIONS Article 44. Where the manufacturers have implemented the recall of defective auto products, they shall not be exempted from undertaking other legal liabilities required by the owners of vehicles and other victims for the damage they suffered from the defective auto products. Article 45. The present Measures shall be interpreted by the State Administration of Quality Supervision, Inspection and Quarantine, the National Development and Reform Commission, the Ministry of Commerce and the Customs General Administration within their respective functions. Article 46. The present Provisions shall be implemented as of October 1, 2004. Attachments: omitted |
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