Administrative Regulations on the Recall of Defective Auto Products (Revised in 2019)

Administrative Regulations on the Recall of Defective Auto Products (Revised in 2019)
Administrative Regulations on the Recall of Defective Auto Products (Revised in 2019)

Order of the State Council of the People's Republic of China No.709

March 2, 2019

(Promulgated by Order of the State Council of the People's Republic of China on October 22, 2012; and revised according to the Decision of the State Council on Revising Certain Administrative Regulations on March 2, 2019)

Article 1 These Regulations are enacted for the purposes of regulating the recall of defective auto products, intensifying supervision and administration and protecting personal and property safety.

Article 2 These Regulations shall be applicable to the recall and the supervision administration of automobiles and trailers (hereafter collectively referred to as the "Auto Products") manufactured and sold within the territory of China.

Article 3 In these Regulations, the defects refer to the circumstances not satisfying the national standards or industrial standards of safeguarding personal and property safety or the unreasonable risks endangering personal and property safety that are generally present in a certain batch, type or category of auto products due to reasons attributable to design, manufacturing or logo labeling.
In these Regulations, the recall refers to the activities where the auto products manufacturers take measures to the auto products that have been sold to eliminate defects.

Article 4 Product quality supervision department of the State Council shall be responsible for the supervision and administration of the recall of the defective auto products across the country.
Relevant departments of the State Council shall be responsible for the supervision and administration of the recall of the defective auto products within the scope of their respective functions and duties.

Article 5 Product quality supervision department of the State Council may, according to the work needs, entrust the relevant product quality supervision departments of provinces, autonomous regions and municipalities under direct central government to be responsible for the part of the supervision and administration of the recall of defective auto products.
The defective products recall technical office of the product quality supervision department of the State Council shall, in light of the provisions of the product quality supervision department of the State Council, undertake the specific technical work of the recall of the defective auto products.

Article 6 Any unit or individual has the right to submit complaints on the possible defects in auto products to the product quality supervision departments. The product quality supervision department of the State Council shall promulgate the telephone number, E-mail and mailing address for accepting the complaints to the public in a way to facilitate public knowledge.
The product quality supervision department of the State Council shall establish defective auto products recall information management system, and shall collect, analyze and dispose relevant information on the defective auto products.
The product quality supervision departments, the competent auto products administrative departments, the competent commercial departments, customs, the transportation management departments of the public securities organs, the competent transportation departments and other relevant departments shall establish information-sharing mechanism in the production, sale, import, registration inspection, repair, consumer complaints and recall of the auto products.

Article 7 The product quality supervision departments and relevant departments, institutions and the staff thereof shall not leak the commercial secrets and personal information which are obtained during their performance of the duties as provided by these Regulations.

Article 8 Manufacturers shall recall all the defective auto products in accordance with the provisions of these Regulations; if the manufacturers fail to recall the defective auto products, the product quality supervision department of the State Council shall order such manufacturers to recall the defective auto products in accordance with the provisions of these Regulations.
In these Regulations, the manufacturer refers to the enterprise that is lawfully established within the territory of the People's Republic of China, produces auto products, and issues product quality certificates in its name.
The enterprises that import auto products abroad to China for sale shall be deemed as the manufacturers referred to in the preceding Paragraph.

Article 9 Manufacturers shall establish and keep records on such information as the design, manufacturing, logo labeling and inspection of the auto products and the information of the owners of auto products upon initial sales, and the retention period shall not be less than 10 years.

Article 10 Manufacturers shall file the following information with the product quality supervision department of the State Council for records,
1. Basic information of the manufacturer;
2. Technical parameters of the auto products and the information of the owner of auto products upon initial sale;
3. Information on repairing, replacement and return of auto products due to the faults in the auto products endangering personal and property safety;
4. Information on the recall of auto products carried out abroad; and
5. Other information required to be filed with the product quality supervision department of the State Council for records.

Article 11 Operators that engage in the sale, leasing and maintenance of auto products (hereafter collectively referred to as the "Operators") shall, according to the provisions of the product quality supervision department of the State Council, establish and keep records on relevant information of the auto products, and the retention period shall not be less than five years.
Upon being aware of the possible defects in the auto products, the operators shall immediately cease the sale, leasing and use of such defective auto products and shall assist the manufacturers in implementing the recall.
Operators shall report the information of the possible defects in the auto products to the product quality supervision department of the State Council and circulate such information to the manufacturers.

Article 12 Upon being aware of the possible defects in the auto products, the manufacturers shall promptly organize investigation and analysis, and truthfully report the conclusion of the investigation and analysis to the product quality supervision department of the State Council.
Upon confirming the existence of defects in the auto products, the manufacturers shall immediately cease the production, sale and import of such defective auto products and implement the recall.

Article 13 Upon being aware of the possible defects in the auto products, the product quality supervision department of the State Council shall immediately inform the manufacturers to carry out investigation and analysis. Where the manufacturers fail to carry out investigation and analysis as required, the product quality supervision department of the State Council shall carry out investigation and analysis.
Believing that there may be defects that may cause serious consequence in the auto products, the product quality supervision department of the State Council may directly carry out defect investigation.

Article 14 When carrying out defect investigation, the product quality supervision department of the State Council may access the production and business premise of the manufacturer and the operators to carry out on-site investigation, inspect or copy the relevant information and records, and investigate into the relevant units and individuals for possible defects in the auto products.
Manufacturers shall cooperate with the defect investigation and provide the relevant information, products and specialized equipment required for the investigation. Operators shall cooperate with the defect investigation and provide the relevant information required for the investigation.
The product quality supervision department of the State Council shall not use the information, products and specialized equipment provided by manufacturers and operators for purposes other than technical testing and appraisal as needed by the defect investigation.

Article 15 If the product quality supervision department of the State Council deems certain auto product is defective after investigation, it shall notify the manufacturers to implement the recall.
If the manufacturer believes that the auto product is not defective, the manufacturer may raise the objection together with evidence materials to the product quality supervision department of the State Council within 15 working days from the receipt of the notice. The product quality supervision department of the State Council shall organize experts with no interest with the manufacturers to examine and verify the evidence materials and, if necessary, carry out technical testing or appraisal of the auto products.
Where the manufacturers neither carry out the recall according to the notice nor raise objections within the prescribed time limit as provided in Paragraph 2 of this Article, or where the auto products are confirmed as defective through the examination and verification, technical testing or appraisal carried out by the product quality supervision department of the State Council according to the provisions of Paragraph 2 of this Article, the product quality supervision department of the State Council shall order the manufacturers to implement the recall, and the manufacturers shall immediately cease the production, sale and import of such defective auto products and implement the recall.

Article 16 In implementing the recall, the manufacturers shall formulate the recall plan in accordance with the regulations of the product quality supervision department of the State Council, and submit the recall plan to product quality supervision department of the State Council for the record.
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