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TABLE OF CONTENTS CHAPTER I GENERAL RULES CHAPTER II ARRANGEMENT FOR HEARINGS CHAPTER III PROCEDURES OF HEARING CHAPTER IV LEGAL LIABILITIES CHAPTER V SUPPLEMENTARY RULES CHAPTER I GENERAL RULES Article 1. In order to regulate the hearing on government price decisions, to make government's price decision-making more scientific and transparent and to promote the democratization and standardization of government price decision-making, these Measures are formulated in accordance with the Price Law of the People' s Republic of China. Article 2. The hearing on government's price decisions used in these Measures shall refer to that, before pricing (including price adjusting, hereinafter the same) for the important commodities and services subject to government guiding prices or government fixed prices, the government price authorities shall arrange the relevant circles of the society to demonstrate the necessity and feasibility of the pricing. Article 3. Those subject to hearing on government price decision are the prices of public utilities, public services and commodities under natural monopoly, within central and local pricing catalogs, that have a bearing on the interest of the general public. Government price authorities may determine and promulgate the hearing catalogs according to the limits of their pricing powers. Hearings shall be held for the pricing of the commodities and services included in the hearing catalogs. Hearings may be held for the pricing of other commodities and services that are not included in the hearing catalogs but have a bearing on the interest of general public, if the government price authorities deem necessary. Article 4. Hearing on government's price decisions shall adopt the form of holding hearings. Article 5. Hearing on government's price decisions shall comply with the principles of justice, openness, objectiveness and efficiency. Government's price decision-making shall be based on opinions from all circles of the society. Hearings shall be held publicly unless state secrets or business secrets are involved. Article 6. The course of hearings shall be subject to public supervision. CHAPTER II ARRANGEMENT FOR HEARINGS Article 7. With respect to the pricing of the commodities and services included in the hearing catalogs, the hearings shall be arranged by the government price authorities. With respect to the pricing of the commodities and services subject to pricing by the price authority and other relevant departments under the State Council, the hearings shall be arranged by the price authority under the State Council, among which, for the commodity and service prices implemented within certain areas, the hearings may be arranged by the price authorities of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government upon entrustment. With respect to the pricing of the commodities and services subject to pricing by the price authorities and other relevant departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government, the hearings shall be arranged by the price authorities of the people's governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government, or may be arranged by the price authorities of the people's governments of the cities and counties. With respect to the pricing of the commodities and services subject to pricing by the people's governments of the cities and counties upon authorization by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government, the hearings shall be arranged by the price authorities of the people's governments of the cities and counties. Article 8. There shall be a chairperson in a hearing, and the chairperson shall be assumed by the relevant person-in-charge of the government price authority. Article 9. Delegates to the hearings shall be selected from a wide range and be representative, and generally be made up of operator representatives, consumer representatives, representatives of the relevant government departments, as well as experts and scholars in the relevant aspects of economy, technology and law. Government price authorities shall, according to the particular contents of the hearings, rationally plan and determine the composition and number of the delegates. Article 10. Delegates to the hearings shall be invited by the government price authorities. Voluntary signing-up, entity recommendation, selection by relevant social organizations upon entrustment, or other methods may be employed in the invitation of delegates by the government price authorities. Article 11. Delegates to the hearings may raise inquiries to the applicants, present their opinions on the feasibility and necessity of the pricing and the pricing plans, and consult the records and minutes of the hearings. Article 12. Delegates to the hearings shall attend the hearings in person, truthfully reflect the opinions of the people and all sides of the society on the pricing, observe the hearing disciplines, maintain the hearing order and keep confidential the state secrets and business secrets. Article 13. Citizens may apply to the government price authorities for participation in the hearings held publicly, and may attend as visitors upon approval. CHAPTER III PROCEDURES OF HEARING Article 14. The operators or the departments in charge of them (hereinafter referred to the applicants) that apply for the pricing of the commodities and services provided for in Article 3 of these Measures shall file written applications with the government price authorities pursuant to the limits of pricing powers. The operators may entrust the representative organizations, such as trade associations, to be the applicants. Article 15. Where there is no applicant, if the government price authority or other relevant departments that have the power to set prices (hereinafter referred to price decision-making departments) deem it necessary to price for those provided for in Article 3 of these Measures, they shall propose the pricing plans pursuant to the limits of pricing powers and by referring to the relevant provisions in this Chapter, and the hearings shall be arranged by the government price authority. Article 16. If the consumers or public organizations deem it necessary to set prices for those provided for in Article 3 of these Measures, they may entrust consumer organizations to apply to the government price authority for participation in the hearings. The specific measures shall be formulated separately. Article 17. The written application filed by an applicant shall include the following materials: (1) Name, address and legal representative of the applicant entity; (2) Specific items to be priced; (3) Present prices and proposed prices, adjustment level per unit, adjustment amount per unit and total adjustment amount; (4) Basis and reasons for the pricing; (5) Impact of the proposed prices on the relevant trades and consumers; (6) Business operations of the applicant enterprise of the last three years, number of employees, change of cost, financial statements of final accounting, output value per person, per-capita income, and a comparison of the above-mentioned norms with enterprises of the same trade within the same region and other regions; the demand and supply status of the priced products or services within the last 3 years and the future price trend; and (7) Other materials required by the government price authority. Article 18. The applicant shall be responsible for the truthfulness of the submitted materials. If the government price authority holds that the statements on financial status submitted by the applicant need examination, an examination institution with legitimate qualifications may be designated to examine the financial status of the applicant, and the examination institution shall produce a report that can prove the truthfulness and rationality of the materials. Article 19. The governmental price authority shall, after having received the written application, make a preliminary examination and verification concerning the completeness of the application materials. If the application materials are not complete, the applicant shall be demanded to make up within the prescribed time limit. In any of the following cases, the price authority shall reject the application: (1) The price applied for is beyond the limits of pricing power; (2) The basis and reasons for pricing are obviously insufficient; or (3) The price applied for is not covered by the hearing catalog, and the government price authority deems that a hearing is unnecessary. Article 20. If the government price authority holds, after examining the written application, that the conditions for hearing are met, it shall make the decision of arranging a hearing within 20 days from acceptance of the application, and shall coordinate with the relevant departments with pricing powers to prepare for the hearing. Article 21. With respect to a hearing to be held publicly, the government price authority may publicize the time, venue, and main contents of the hearing in advance. Article 22. The government price authority shall hold a hearing within three months after deciding to arrange for the hearing, shall send the letters of invitation and materials about the hearing to the delegates at least 10 days prior to the hearing, and confirm the number of delegates that can participate in the hearing. The hearing may be held only when more than two thirds of the delegates are present. Article 23. A hearing shall proceed according to the following procedures: (1) The chairperson declares the hearing matters and disciplines of the hearing, and introduces the delegates to the hearing; (2) The applicant briefs the plan, basis and reasons for pricing; (3) The government price authority introduces the policies, laws and regulations concerning pricing, preliminary examination opinions and other matters that needs to be specified; (4) In case the government price authority requests an examination institution to examine the financial status of the applicant, the examination institution concerned briefs the basis and opinions of the examination; (5) Delegates to the hearing cross-examine and argue over the pricing plan proposed by the applicant; (6) The applicant makes a statement; (7) The chairperson of the hearing makes a conclusion; and (8) Delegates to the hearing check the records of the hearing and affix their signatures. Article 24. The government price authority shall write minutes of hearing after the hearing, and serve them to the delegates within 10 days. The minutes of hearing shall include the following information: (1) Basic information of the hearing; (2) Brief introduction of the delegates' opinions; and (3) Major opinions of the delegates about the pricing plan. If the delegates have any doubts about the minutes, they may present their opinions to the chairperson of the hearing or the government price authority at the next higher level. Article 25. The price decision-making department shall, when setting the prices, take the opinions of the delegates into careful consideration. If most of the delegates disagree with the pricing plan or have substantially different opinions, the price decision-making department shall ask the applicant to make adjustments, or the government price authority shall arrange for another round of hearing if necessary. All final pricing plans that need to be submitted to the people's government at the same level or to the price authority at the next higher level and that have been demonstrated at the hearing shall be accompanied by the minutes of hearing, the hearing records and other relevant materials. Article 26. The government price authority shall publicize the final results on pricing to the public. Article 27. In order to lower the administrative cost and raise the administrative efficiency, summary procedures may be employed on the premise that the lowering or setting of price has little influence on the public. The specific measures shall be determined separately by the government price authorities at the provincial level and above. CHAPTER IV LEGAL LIABILITIES Article 28. If the price decision-making department sets the price of any of the commodities or services provided for in Article 3 of these measures without holding a hearing, its decision shall be invalidated by the people's government at the same level or the government price authority at the next higher level for violation of the pricing procedures, and the violating department shall be ordered to make corrections. Article 29. If the government price authority or the chairperson of the hearing violates the procedures, practices frauds or seeks private interests through wrongful means, the hearing shall be invalidated by the people's government at the same level or the government price authority at the next higher level, and the violator shall be reported to the relevant departments for administrative liabilities. If the circumstances are serious and wrong decisions have resulted, the relevant persons shall be held to assume legal liabilities. Article 30. If any examination institution issues a false report of examination, the government price authority shall disqualify it and advise to the relevant bodies to investigate for the corresponding liabilities. Article 31. If any applicant submits false materials, the government price authority shall order it to make corrections and advise the relevant bodies to investigate for the corresponding liabilities pursuant to law. CHAPTER V SUPPLEMENTARY RULES Article 32. Hearing expenses may be included in the financial budget of the same level if it is so requested. Article 33. Detailed implementation measures of these measures may be formulated by the price authorities of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government. Article 34. The power to interpret these measures shall remain with the State Development Planning Commission. Article 35. These measures shall come into force as of December 1, 2001. The Interim Measures for Hearing on Government Price Decisions promulgated by the State Development Planning Commission on July 2, 2001 shall be repealed at the same time. |
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