Notice of the Shanghai Municipal Commission of Commerce and the Administrative Bureau of Bonded Areas of the China (Shanghai) Pilot Free Trade Zone Administration on Dynamic Adjustment to the Pilot Enterprises for the Parallel Import of Automobiles in China (Shanghai) Pilot Free Trade Zone

· Area of Law： China (Shanghai) Pilot Free Trade Zone

· Level of Authority： Local Regulatory Documents

· Date issued：04-27-2017

· Effective Date：04-27-2017

· Status： Effective

· Issuing Authority： Shanghai Municipal Committee of Commerce

Notice of the Shanghai Municipal Commission of Commerce and the Administrative Bureau of Bonded Areas of the China (Shanghai) Pilot Free Trade Zone Administration on Dynamic Adjustment to the Pilot Enterprises for the Parallel Import of Automobiles in China (Shanghai) Pilot Free Trade Zone
All relevant entities:
In accordance with the Several Opinions of the General Office of the State Council on Strengthening Import (No. 49 [2014] of the General Office of the State Council), the Reply of the Ministry of Commerce on Issues concerning the Pilot Program of the Parallel Import of Automobiles in China (Shanghai) Pilot Free Trade Zone (No. 869 [2014], Ministry of Commerce), the Several Opinions on Promoting the Pilot Program of the Parallel Import of Automobiles (No. 50 [2016], Ministry of Commerce) issued by eight departments including the Ministry of Commerce, and the Notice of Eight Departments including the Shanghai Municipal Commission of Commerce on Issuing the Implementation Opinions on Promoting the Pilot Program of the Parallel Import of Automobiles in China (Shanghai) Pilot Free Trade Zone (No. 167 [2016], Shanghai Municipal Commission of Commerce), for the purposes of promoting the development of the industry of the parallel import of automobiles in China (Shanghai) Pilot Free Trade Zone (“SHFTZ”) and further enhancing enterprises' enthusiasm of participating in the pilot program, on the basis of the pilot program at the earlier stage, dynamic adjustment shall be made to the identification of enterprises, responsibility requirements, division of responsibilities of various departments, supervision and management and other contents for the pilot program of the parallel import of automobiles, the original pilot enterprises shall be re-identified, and all qualified enterprises may be identified as pilot enterprises. The specific adjustment is as follows:
I. Implementing the pilot program of parallel import of automobiles in SHFTZ means the distribution behavior that a pilot enterprise registered in the bonded areas of SHFTZ (hereinafter referred to as “in the areas”) or a wholly-owned subsidiary or holding company with automobile dealing qualification formed by a pilot enterprise in the areas obtains a license for the automatic import of parallel import automobiles and sells imported automobiles without the authorization of the manufacturer.
II. Under the principles of “steady promotion, standardized and orderly, and controllable risks,” the Shanghai Municipal Commission of Commerce, the Administrative Bureau of Bonded Areas of SHFTZ, the Shanghai Customs, the Shanghai Entry-exit Inspection and Quarantine Bureau, the Shanghai Municipal Administration for Industry and Commerce, the Shanghai Municipal Commission of Economy and Informatization, the Shanghai Municipal Bureau of Public Security, the Shanghai Municipal Transportation Commission, the Shanghai Environmental Protection Bureau and other relevant departments shall, according to their respective functions and duties, carry out work and ensure the steady implementation of the pilot program.
The Shanghai Municipal Commission of Commerce shall, in conjunction with the Administrative Bureau of Bonded Areas of SHFTZ and other departments, promote the pilot program of the parallel import of automobiles in a coordinated manner, be responsible for the recognition and withdrawal of the pilot enterprises, and conduct dynamic management of pilot enterprises. Qualified enterprises shall be encouraged to actively apply for and participate in the pilot program.
III. Enterprises meeting the following conditions may apply for implementing the pilot program of the parallel import of automobiles:
(1) Enterprises that have been engaged in import and sale of automobiles for more than one year and have had certain sales scale.
(2) Pilot enterprises for the parallel import of automobiles shall be wholly-owned subsidiaries or holding companies that are registered in SHFTZ or have automobile dealing qualification in the areas.
(3) Enterprises that have outlets and facilities of maintenance and service and spare parts that are compatible with the scale of operation. Enterprises failing to satisfy the requirements of this article may rely on third parties to provide corresponding services and may only participate in the pilot program after satisfying the requirements.
(4) Enterprises that are reputable and have sound overseas automobile source procurement channels and experience in the automobile sales and service industry.
(5) Enterprises that have implemented or participated in the pilot program of the parallel import of automobiles in SHFTZ and have records of parallel import in the Shanghai port shall be given priority.
IV. An enterprise applying for the pilot program shall submit the following application materials to the Shanghai Municipal Commission of Commerce or the Administrative Bureau of Bonded Areas of SHFTZ:
(1) An application form for implementing the pilot program of the parallel import of automobiles, including the profile, business operation information, business distribution, maintenance network and other items of the enterprise filing an application; and a plan for implementing the pilot program of the parallel import of automobiles, mainly including the automobile source, import model, after-sales service, supply of spare parts, compliance of the imported automobile products with the national quality standards and the mandatory requirements of technical specifications, certification of mandatory products, etc.
(2) An undertaking for implementing the pilot program of the parallel import of automobiles within three years after an enterprise is identified to be pilot enterprise and for dealing no less than 500 parallel import automobiles as of the end of 2017 after the identification.
(3) A photocopy of the business license for a pilot enterprise legal person.
(4) The financial statements of the previous year issued by an accounting firm.
(5) The certification materials for the industrial and commercial registration of corresponding business distribution network, after-sales service network and other items. Where there are no after-sales service outlets, the after-sales service commission agreement shall be provided.
(6) Relevant proof on the enterprise's overseas parallel import automobile source procurement channels.
(7) Relevant proof that the enterprise has implemented or participated in the pilot program of the parallel import of automobiles in SHFTZ and have been actually engaged in import.
(8) other relevant materials.
V. After being identified, an enterprise applying for the pilot program shall, according to the relevant provisions of the state on the license management of the import of mechanical and electrical products and relevant requirements of the Ministry of Commerce, provide relevant import application materials and apply to the Ministry of Commerce for an automatic import license for parallel import of automobiles.
VI. A pilot enterprise and its wholly-owned subsidiary or holding company with automobile dealing qualification registered in SHFTZ shall be the primary responsible party for the product quality tracing of parallel import automobiles, shall lawfully perform the obligations including product recall, quality assurance, after-sales service, Three Guarantees of automobiles, accounting of average fuel consumption, etc., shall not import used automobiles or illegally refit automobiles, and shall be responsible for eliminating the quality defects by taking the plan licensed by the original manufacturer. Imported automobile products shall comply with the relevant national quality standards and the mandatory requirements of the technical specifications, and satisfy the access requirements for compulsory product certification as prescribed by the state.
VII. Pilot enterprises and their wholly-owned subsidiaries or holding companies with automobile dealing qualification registered in SHFTZ that provide relevant services and carry out business operation activities shall comply with the laws and regulations of the state currently in force and satisfy the relevant requirements of this Notice. Where relevant supervision departments find any behaviors that do not satisfy the requirements of this Notice and there are relevant laws and regulations, relevant departments shall lawfully grant penalties. Where there are no provisions of the laws and regulations, the violators shall be ordered to take corrective action within a prescribed time limit or cease the pilot program.
VIII. Making dynamic adjustment on an annual basis. In accordance with the unified requirements of the Ministry of Commerce, the Shanghai Municipal Commission of Commerce shall, in conjunction with the Administrative Bureau of Bonded Areas of SHFTZ, take the lead in making dynamic adjustment to the pilot enterprises according to enterprises' scale of parallel import of automobiles and business operation level in the current year at the end of each year, and the eliminated enterprises may still participate in the next round of application for the qualification for the pilot program.
Enterprises applying for the pilot program shall submit the application materials to the Shanghai Municipal Commission of Commerce or the Administrative Bureau of Bonded Areas of SHFTZ before Monday, May 8, 2017. It is hereby notified.
Shanghai Municipal Commission of Commerce
Administrative Bureau of Bonded Areas of the China (Shanghai) Pilot Free Trade Zone Administration
April 27, 2017