Announcement by the Ministry of Commerce and Other Relevant Departments on Issues Related to the Export of Second-hand Cars
Content source - official website of the Ministry of Commerce
【Issuing Unit】Foreign Trade Department
【Document Number】Announcement No. 6 of 2024 by the Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Transport, and General Administration of Customs
【Issue Date】February 5, 2024
To promote the healthy and orderly development of China’s second-hand car export, in accordance with the “Foreign Trade Law of the People’s Republic of China,” the “Road Traffic Safety Law of the People’s Republic of China” and its implementing regulations, the “Customs Law of the People’s Republic of China,” the “Regulations on the Import and Export of Goods of the People’s Republic of China,” the “Regulations on the Management of Motor Vehicle Repair,” and the “Provisions on the Registration of Motor Vehicles,” the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Transport, and the General Administration of Customs have jointly formulated the relevant requirements and procedures for the export of second-hand cars, which are now published.
I. General Provisions
Second-hand cars refer to cars (excluding three-wheeled vehicles and low-speed cargo vehicles, the same below) and trailers that are traded and transferred ownership before reaching the national mandatory scrapping standards after completing the registration procedures.
A second-hand car export enterprise refers to an enterprise registered in the People’s Republic of China that engages in the business of exporting second-hand cars.
The state implements an export permit management system for second-hand cars. The Ministry of Commerce is responsible for the national policy formulation, guidance, coordination, and supervision of the export of second-hand cars. The Ministry of Industry and Information Technology is responsible for the relevant work of the “Announcement of Road Motor Vehicle Production Enterprises and Products.” The Ministry of Public Security guides and supervises the traffic management departments of local public security organs in handling the registration of exported second-hand cars. The Ministry of Transport is responsible for the data collection of the electronic health record system for car maintenance and the query service for second-hand car maintenance records. The General Administration of Customs is responsible for guiding, inspecting, and supervising the customs clearance of second-hand cars in its directly affiliated customs. This announcement applies to the act of exporting second-hand cars to places outside the customs territory of the People’s Republic of China.
II. Enterprise Application Conditions
Second-hand car export enterprises shall comply with national laws and regulations, strictly fulfill their relevant responsibilities and obligations, and meet the following conditions when applying to carry out the export business of second-hand cars.
(1) Production enterprises.
Registered in the People’s Republic of China, with independent legal person status;
The enterprise is listed in the “Announcement of Road Motor Vehicle Production Enterprises and Products” of the Ministry of Industry and Information Technology;
Export products produced by the enterprise;
The enterprise operates legally and in compliance with regulations, meeting the requirements of safety production, environmental protection, taxation, customs, and foreign exchange management laws and regulations, with no unrectified illegal and irregular behaviors, and no serious dishonest behaviors.
(2) Circulation enterprises.
Registered in the People’s Republic of China, with independent legal person status;
Have a fixed business office and second-hand car display and sales premises, with experience in car sales or trade;
Have the ability to appraise second-hand cars and employ at least 3 appraisal professionals;
The enterprise operates legally and in compliance with regulations, meeting the requirements of safety production, environmental protection, taxation, customs, and foreign exchange management laws and regulations, with no unrectified illegal and irregular behaviors, and no serious dishonest behaviors.
III. Enterprise Application Procedures and Materials
1、 The commerce departments at the provincial, autonomous region, and municipality directly under the Central Government levels, and the commerce departments of cities specifically designated in the state plan and the Xinjiang Production and Construction Corps (hereinafter referred to as the provincial commerce departments) are responsible for the review of second-hand car export enterprise application materials.
2、 Enterprises can log in to the “Ministry of Commerce Unified Business System” enterprise end to fill in the application materials and submit them to the provincial commerce department for review. After passing the review, the enterprise can carry out the export business of second-hand cars within one year and needs to reapply the next year.
3、 Provincial commerce departments can log in to the “Ministry of Commerce Unified Business System” management end to review the application materials of enterprises in their administrative region. For application materials that meet the requirements of this announcement, they should be reviewed and approved within 15 working days; for materials that do not meet the requirements, the reasons should be informed in one time.
4、Enterprises applying to carry out the export business of second-hand cars need to submit the following materials:
(1)Application for carrying out the export business of second-hand cars. The content includes but is not limited to:
① Basic information of the enterprise and its investors;
② Business operation situation: including domestic car transactions, car trade, business performance, etc.;
③ Three-year development plan for the export business of second-hand cars; Implementation plan for the export business of second-hand cars: including domestic procurement of second-hand cars, quality assurance, overseas sales, after-sales service, etc.;
④ Copy of the enterprise’s legal person business license (original and duplicate), customs code, and unified social credit code of the enterprise;
⑤ A letter from the legal representative of the enterprise, signed and stamped with the enterprise’s official seal, promising that the materials submitted are true and effective, as well as a commitment letter stating that there are no unrectified illegal and irregular behaviors and no serious dishonest behaviors.
(2)Circulation enterprises need to submit proof of ownership or right to use of the business premises, proof of the appraisal professionals’ capabilities and proof of social security payment by the enterprise, proof of car sales or trade, and a copy of the financial audit report for the previous fiscal year issued by the accounting firm. New registered enterprises should provide the financial statements for the current reporting period and a copy of the financial audit report for the previous fiscal year of the enterprise’s investors.
5、 Enterprises exporting second-hand cars in the form of engineering contracts do not need to apply in advance and can directly apply for an export permit with the winning bid document, the registration form for foreign contracted projects, the contract, and other relevant proof materials.
IV. Export Permit Application Process
(1) Second-hand car export enterprises that have passed the review can apply for an export permit after legally completing the transfer registration procedures for second-hand cars. Vehicles that have completed export customs clearance cannot be returned. Within 2 months after handling the customs export procedures for second-hand cars, apply to the local public security traffic management department or the place of motor vehicle registration for cancellation of registration with the export customs declaration form and other relevant certificates and vouchers required by laws and regulations.
(2) For enterprises that purchase motor vehicles and apply for transfer registration, after returning the original motor vehicle license plate and driving license and inspecting the motor vehicle, the public security traffic management department will note “transfer pending export” on the motor vehicle registration certificate, issue a temporary driving license plate, and the validity period of the temporary driving license plate shall be the same as that of the mandatory traffic accident liability insurance for motor vehicles, but shall not exceed 60 days. Vehicles with “transfer pending export” noted on the motor vehicle registration certificate should promptly handle procedures related to the application for an export permit for second-hand cars, customs clearance, and cancellation of registration.
(3) Second-hand car export enterprises that have passed the review shall, in accordance with the principle of “who exports who applies,” apply for an export permit on the “Ministry of Commerce Unified Business System” enterprise end, and other enterprises or individuals cannot apply on their behalf.
(4) Provincial commerce departments are the issuing agencies and are responsible for the issuance of second-hand car export permits. Provincial commerce departments should issue export permits to enterprises with materials meeting the application requirements within 3 working days. For materials that do not meet the requirements, the reasons should be informed in one time.
(5) The export permit is “one batch, one permit,” and the export enterprise can apply for up to 20 second-hand cars under the same commodity code on the export permit application form. The applied quantity should be consistent with the actual customs declaration quantity and the customs clearance should be completed at one time. If the quantity declared at customs is less than the applied quantity, a new export permit should be applied for.
(6) When applying for an export permit, enterprises can choose between paper-based operations or paperless operations. For paperless operations, an electronic export permit certificate should be applied for in accordance with regulations.
(7) Customs implements online verification of second-hand car export permits and handles customs procedures in accordance with regulations. When applying to customs for procedures for exporting second-hand cars, enterprises should, in accordance with the provisions of customs declaration management, fill in the commodity name as “old + vehicle brand + displacement + model (such as SUV, sedan, etc.).”
(8) Second-hand cars that have undergone transfer pending export procedures may not be traded or transferred ownership within the territory again. In case of special circumstances that prevent the execution of the export contract, the enterprise should coordinate with other importers to sign a new export contract.
V. Export Permit Application Materials
Enterprises applying for a second-hand car export permit need to submit application materials.
(1) Export permit application form. Fill in the vehicle identification number (VIN) in the “VIN Code” column, fill in the name of the second-hand car export enterprise in both the “Exporter” and “Shipper” columns, select “old” in the “Commodity Status” column, and fill in the vehicle brand and model in the “Specifications, Grade” column. The relevant content should be consistent with that in the “Motor Vehicle Registration Certificate.”
(2) Legally effective export contract (including after-sales service content). If the contract is in a foreign language, a Chinese translation should be provided at the same time, and the Chinese translation shall prevail.
(3) Original or scanned copy of the "Motor Vehicle Registration Certificate The vehicle owner in the “Motor Vehicle Registration Certificate” should be the same as the name of the second-hand car export enterprise applying for the permit.
(4) Product inspection report issued by a third-party testing institution and a self-declaration stating that the institution has no unrectified illegal and irregular behaviors and no serious dishonest behaviors. The testing standards are the “Quality Requirements for the Export of Second-hand Passenger Cars” (WM/T8-2022) and the “Quality Requirements for the Export of Second-hand Commercial Vehicles and Trailers” (WM/T9-2022).
(5) A declaration that the exported vehicles meet the market access standards of the export target market, stamped with the enterprise’s official seal.
VI. Prohibited Export Situations
The following second-hand cars are prohibited from being exported:
(1) Vehicles that meet the scrapping standards specified in the “Regulations on the Compulsory Scrapping of Motor Vehicles” and vehicles within one year (including one year) before the specified scrapping period;
(2) Vehicles under mortgage, pledge, or within the customs supervision period;
(3) Vehicles seized or detained by supervisory, judicial, procuratorial, and law enforcement departments;
(4) Vehicles obtained through theft, robbery, fraud, and other illegal means;
(5) Vehicles whose registration information does not match the “Motor Vehicle Registration Certificate”;
(6) Smuggled or illegally assembled vehicles;
(7) Vehicles with incomplete legal proof and certificates;
(8) Vehicles that fail inspection;
(9) Vehicles with unresolved traffic safety violations and accidents;
(10)Other vehicles prohibited from trading and exporting by laws and regulations.
VII. Responsibility Requirements
In the work of second-hand car export, the provincial commerce departments, industry and information technology departments, public security traffic management departments, transportation departments, customs, export enterprises, and testing institutions shall all bear corresponding responsibilities.
1、 Responsibilities of provincial commerce departments.
Provincial commerce departments should establish a special working mechanism, do a good job in reviewing second-hand car export enterprises and issuing export permits for second-hand cars, strengthen supervision, and effectively prevent and control various risks. Establish a credit record system and record the dishonest behaviors of export enterprises in the credit file. If any enterprise in their administrative region is found to have dishonest behaviors, they should promptly report to the Ministry of Commerce and relevant competent departments such as industry and information technology, public security, transportation, and customs.
2、 Responsibilities of industry and information technology departments.
Industry and information technology departments should perform their functions in the access management of road motor vehicle production enterprises and products, and do a good job in the access and supervision of road motor vehicle production enterprises and products.
3、 Responsibilities of public security traffic management departments.
Public security traffic management departments should legally handle the transfer and cancellation of registration procedures for exported second-hand cars, and promptly inform the commerce departments of enterprises with illegal and irregular behaviors.
4、Responsibilities of transportation departments.
The Ministry of Transport shall guide the technical support units to provide second-hand car export enterprises registered with the commerce department with maintenance record data query services through the electronic health record system for car maintenance.
5、 Responsibilities of customs.
Customs should promptly inform the commerce and public security departments and other relevant departments when enterprises export vehicles explicitly prohibited by this announcement.
6、 Responsibilities of export enterprises.
Second-hand car export enterprises are the main responsible parties for quality traceability. They must strictly abide by the “Foreign Trade Law of the People’s Republic of China” and the “Regulations on the Import and Export of Goods of the People’s Republic of China” and other relevant regulations, fulfill their obligations to truthfully indicate vehicle mileage, repair conditions, and other vehicle information, and conduct export product testing. They should timely provide maintenance technology and spare parts support and coordinate to solve major issues in overseas quality and after-sales service. Export enterprises are encouraged to provide maintenance records of exported vehicles in the “National Car Maintenance Electronic Health Record System.”
Export enterprises shall not engage in the following behaviors:
(1)Export vehicles explicitly prohibited by this announcement;
(2)Provide false vehicle conditions, fail to fulfill quality assurance obligations, and refuse government regulation;
(3)Forge, alter, or trade export permits;
(4)Forge, alter, or use forged or altered “Motor Vehicle Registration Certificates”;
(5)Submit false materials for vehicle transfer registration, export, and cancellation;
(6)Fail to apply for export in accordance with the prescribed procedures and fail to cancel the vehicle within the prescribed time limit;
(7)Export products that have major quality and safety incidents overseas and have a significant adverse impact on China’s exports;
(8)Other violations of laws and regulations.
Enterprises with the above behaviors will be recorded in the credit file by the provincial commerce departments, and those suspected of illegal activities will be investigated for legal responsibilities according to law.
7、 Responsibilities of testing institutions.
Testing institutions should issue objective, fair, scientific, and accurate testing reports in accordance with relevant standards.
VIII. Supplementary Provisions
This announcement shall come into effect on March 1, 2024. The relevant provincial commerce departments should guide the enterprises in their localities that have been approved to carry out the second-hand car export business before the release of this announcement to re-complete the application and review in accordance with the requirements and procedures of this announcement within 6 months from the implementation date. The “Notice of the Ministry of Commerce on Matters Concerning the Application for Second-hand Car Export Permits” (Shangmao Banbian [2019] No. 854), the “Notice of the Ministry of Commerce and the General Administration of Customs on Paperless Operations for Second-hand Car Export Permit Applications” (Shangmao Tongsu Han [2019] No. 297), and the “Notice of the Ministry of Commerce, the Ministry of Public Security, and the General Administration of Customs on Accelerating the Work on Second-hand Car Exports” (Shangmao Tongsu Han [2019] No. 335) where provisions are inconsistent with this announcement, this announcement shall prevail.
Ministry of Commerce
Ministry of Industry and Information Technology
Ministry of Public Security
Ministry of Transport
General Administration of Customs
February 5, 2024
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