Measures on Government Pricing Hearings

Measures on Government Pricing Hearings
Measures on Government Pricing Hearings

Order of the National Development and Reform Commission of the People's Republic of China No. 21

December 10, 2018

The Measures on Government Pricing Hearings, which were deliberated and adopted at the director's executive meeting of the National Development and Reform Commission, are hereby promulgated and shall come into effect from January 10, 2019.

Director: He Lifeng

Measures on Government Pricing Hearings

Chapter I General Provisions

Article 1 With a view to regulating government pricing hearings, and enhancing the democracy, scientificity and transparency of government pricing, the Measures on Government Pricing Hearings (the "Measures") are hereby formulated pursuant to the Pricing Law of the People's Republic of China.

Article 2 For the purpose of the Measures, government pricing hearing (the "pricing hearing") means that while a pricing authority lawfully sets (including adjustment, the same below) a government guidance price or government-fixed price or a pricing mechanism, the competent government department of prices seeks opinions from operators, consumers and relevant parties by means of hearing, so as to demonstrate the necessity, feasibility and rationality of pricing.
The pricing authority set out in the preceding paragraph includes the competent department for price or other relevant department of the people's government at or above the level of province, autonomous region or municipality directly under the Central Government (the "provincial level") with pricing right or the people's government of a city or county authorized by the provincial people's government.
The pricing mechanism specified in the preceding paragraph refers to the pricing method, formula and so on directly related to prices of pricing items included into the pricing hearing catalogue.

Article 3 Pricing hearings shall be conducted for setting the government guidance price and government-fixed prices of public utilities related to vital interests of the masses, public welfare services, commodities and services under natural monopoly and so on.
In formulating a pricing mechanism, pricing hearings shall be conducted, or public comments shall be sought. Where a specific price is set as per the pricing mechanism that has already taken effect, pricing hearing may not be necessary.
Specific items of hearings shall be determined by the pricing hearing catalogue. However, regarding prices of commodities easily leading to panic buying or hoarding or abnormal market fluctuation, comments shall be sought by any other means, and they shall not be included into the pricing hearing catalogue.
The pricing Hearing catalogue refers to a list formulated by competent department of prices under the people's government at provincial level or above on goods and service that shall be subject to pricing hearing. The pricing hearing catalogue shall be formulated, revised and published in a timely manner upon soliciting the public comments. Items subject to pricing hearings as stipulated by laws, regulations and rules shall automatically enter into the pricing hearing catalogue.
Where any government guidance price or government-fixed price outside the pricing hearing catalogue is to be formulated, pricing hearing may be conducted, if a pricing authority deems it necessary.

Article 4 The pricing hearing shall follow principles of openness, fairness, justice and efficiency.

Article 5 A hearing shall be conducted in public, with attendance and news coverage allowed, except for that involving any state secret or business secret.
The competent government department of prices may make public contents of hearings in the form of video ,text or pictures via the Internet.

Chapter II Organization of Hearings

Article 6 A pricing hearing shall be organized by the competent government department of prices.
Where a hearing is necessary for the pricing authority at or above the provincial level to set a price, the competent government department of prices at the same level shall organize the hearing.
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