The Ministry of Commerce ("MOFCOM") has recently issued, in concert with six other departments, the Implementing Rules of the Administrative Measures for the Recycling of Scrap Vehicles (the "Implementing Rules") for implementation as of September 1, 2020.
According to the Implementing Rules, the State will practice a qualification certification system for enterprises engaged in recycling and disassembling scrap cars. The Implementing Rules add that no entity or individual without the qualification may carry out any activities to recycle or disassemble scrap vehicles. The State encourages motor vehicle manufacturers to engage in the recycling and disassembling of scrap vehicles. Motor Vehicle manufacturers shall assume the producer responsibility in accordance with the relevant national provisions, and provide the relevant technical information such as manuals on the disassembling of scrap vehicles to recycling and disassembling enterprises. Meanwhile, the Implementing Rules specify the code of conduct for recycling and disassembling. Among others, if the "five major parts" of scrap vehicles, exhaust gas after-treatment devices, and power batteries for new energy vehicles are not complete, the owners of such vehicles shall give a written explanation and be responsible for the authenticity. In addition, in terms of recycling, the Implementing Rules propose that "no entity or individual may make use of the five major parts of scrap vehicles to assemble motor vehicles" and other requirements.