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Article 1. In order to regulate the salt price acts, to safeguard the legitimate rights and interests of the consumers and operators, and to promote the healthy development of the salt industry, these Measures are enacted in accordance with the Price Law of the People's Republic of China and the Measures for Salt Monopoly and other relevant laws and administrative regulations. Article 2. All salt price acts occurring within the People's Republic of China shall be governed by these Measures. Article 3. Salt used in these Measures refers to the salt directly edible or used to manufacture food. Article 4. Salt price shall be fixed by the government, which will respectively fix the factory price, wholesale price and retail price for the links of salt production and distribution. Article 5. Salt price shall be subject to unified leadership and level-by-level administration. The department in charge of price under the State Council shall be responsible for fixing or adjusting the factory price and wholesale price of salt, and the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for fixing or adjusting the retail price and the standards for small package cost. Article 6. Fixing and adjusting salt price shall be based on the average social cost for salt production and operation, and the following factors shall be taken into consideration: differences in production and operation conditions, differences in salt types and grades, economic capacity of the consumers, especially of the residents in remote areas, and the price connection among adjoining areas. Article 7. Factory price refers to the tax-included price of the large-packaged salt sold by fixed salt production enterprises, such price consists of cost occurring in the salt production link (including the production cost and period cost), the profits and taxes. Article 8. Production area wholesale price refers to the tax-included price of the salt transferred from salt production areas to salt distribution areas according to the state plan on salt distribution and allocation, such price consists of the factory price, the transfer expenses occurring during the allocation of salt from the production areas, and the taxes. The transfer expenses include the short-distance freight, loading and unloading expenses, station and dock charges, and administrative fees. Article 9. Distribution area wholesale price refers to the tax-included price of the salt sold by salt wholesale enterprises or wholesale entities commissioned thereby to retail entities or food processing entities, such price consists of the factory price or production area wholesale price, and the cost occurring in the wholesale link (including operation cost and period cost), the taxes and profits. The iodized salt fund paid pursuant to state provisions shall be included in the cost of wholesale link. Article 10. The rate of pre-tax profits to gross output value in the production and wholesale of salt shall be fixed by the department of price under the State Council according to the average profit rate level of the society, the needs of development of the salt industry and the economic capacity of the residents. Article 11. Factory price and wholesale price of small-packaged salt shall be respectively fixed on the basis of the factory price and wholesale price of the large-packaged salt of the same type plus the small package cost. The standard for small package expenses shall consist of the purchase cost of the small packages, anti-counterfeiting markers and outer packages, the packaging cost, the taxes and profits. The rate of pre-tax profit to gross output value shall be controlled within 15%, and the loss rate may not exceed 3%. Article 12. Retail salt price refers to the final sale price of the salt on the retail market, which shall be fixed on the basis of the wholesale price plus the difference between wholesale and retail prices. The difference rate shall be controlled within 20%. Article 13. When fixing or adjusting the retail price of salt, the economic capacity of the residents of remote areas shall be given an adequate consideration; salt of the same type shall, in general, be subject to the unified retail price of the whole province (autonomous region or municipality directly under the Central Government). Article 14. When fixing or adjusting the factory price or wholesale price of large-packaged salt, the salt operators shall present written suggestions to the local departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government, and the suggestions shall, after being examined by the departments, be submitted to the department of price under the State Council for examination and approval. The examination report shall include the following contents: (1) The production and operation cost and operation status of the salt production or distribution enterprise in the last three years; (2) The specific scheme on fixing or adjusting the price and the main reasons thereof; (3) Opinions of the salt production or distribution enterprise or other sides; (4) Coordination opinions of the departments in charge of price of the adjoining provinces, autonomous regions and municipalities directly under the Central Government or those associated in production and distribution; and (5) Other matters need to be explained. Where considerable changes occur to the cost of salt production and distribution, prominent price conflicts arise and the society has strong reaction, the department in charge of price under the State Council may directly adjust the factory price and wholesale price of large-packaged salt. Article 15. The contents and format of the written proposal of the salt operators on fixing or adjusting the factory price or wholesale price of large-packaged salt, and the procedures and specific requirements for fixing or adjusting the salt retail price or the standards for small package cost shall be provided for by the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government according to the actual situations of the localities. Article 16. The government price authorities shall make the decision on whether to fix or adjust the price or not within 30 workdays from the receipt of the examination report or written application for fixing or adjusting the salt price. Article 17. When fixing or adjusting salt price, cost investigation shall be carried out, and opinions shall be sought from the consumers and salt operators and other relevant circles. The salt operators shall faithfully reflect the facts, and provide the relevant financial statements, account books and relevant materials. Article 18. The fixed salt production and wholesale enterprises shall, before the end of April of each year, submit the production and operation costs and other relevant materials to the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government. Article 19. An operator may not commit any of the following acts: (1) Actually applying price higher or lower than the price fixed by the government; (2) Moving up or deferring, without permission, the application of the price fixed by the government; (3) Fixing salt price without authorization; or (4) Other acts in violation of these Measures. Article 20. Any operator violating these Measures shall be punished by the price authority pursuant to the Price Law of the People's Republic of China and the Provisions on Administrative Punishment for Illegal Price Acts. Article 21. If the departments in charge of price at various levels or the departments relating thereto, in violation of these Measures, fix or adjust salt price beyond the authority or scope for price fixing, fail to apply, or move up or defer the application of price fixed by government, they shall be ordered to correct the acts and a notice of criticism shall be circulated; the directly responsible person and other responsible personnel shall be given administrative sanctions by the relevant departments. Article 22. In respect of factory price and wholesale price of multi-type salt and salt for sausage casing, the department in charge of price under the State Council shall entrust the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government to fix or adjust according to these Measures. The salt used for fishery and animal raising shall be subject to these Measures, the price thereof shall be fixed or adjusted by the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government. Article 23. Where the departments in charge of price of the provinces, autonomous regions and municipalities directly under the Central Government fix or adjust the retail salt price, standards for small package cost and prices of multi-type salt, salt for sausage casing, salt used for fishery and for animal raising, they shall submit such fixing and adjustment to the department in charge of price under the State Council in 15 workdays in advance before the promulgation and implementation. Article 24. Price of export salt shall be fixed by the operators themselves. Article 25. The power to interpret these Measures shall remain with the State Development Planning Commission. Article 26. These Measures shall come into force on July 1, 2003. |
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