New China Regulations for Transport

October 12, 2018

 

1.  Prohibition of Non-Compliant Car Transport Carriers on Highways

According to the requirements of GB1589, enacted on January 1, 2018, the vehicle transport market will be dominated by two legal models: articulated vehicle transport vehicles and mid-axle vehicle transport vehicles. According to the requirements of the "Car Transporter Vehicle Governance Work Plan", this regulation will be enforced from June 30, 2018. All non-compliant vehicle transporters must be fully renovated and adapted.

 

2.  Reduction of Vehicle Purchase Tax on National Trailers

The Ministry of Finance, the State Administration of Taxation and the Ministry of Industry and Information Technology jointly issued the "Announcement on the Reduction of Vehicle Purchase Tax on Trailers", which states that from July 1, 2018 to June 30, 2021, the purchase tax of trailers has been halved.

 

3.  Cancellation of Blue-Label Truck Qualification and Operation Certificate

On May 16, 2018, the State Council executive meeting proposed to cancel the ordinary freight business qualification certificate and vehicle operation permit for vehicles less than 4.5 tons.  This will further reduce the operating burden of truck drivers and optimize the production and operation environment.

 

4.  Combination of Annual Verification, Annual Inspection and Tail Pipe Inspection for Trucks

On May 16, the State Council further sought to reduce logistics cost. By the end of this year, the annual verification, annual inspection and gas emission inspection of trucks will be combined. The announcement of the policy immediately attracted widespread attention. The Ministry of Transport responded that it would speed up the “three-in-one” inspection of trucks, ensuring that it would be in force by year’s end.

 

5.  Reduction of Import Tariffs on Vehicles and Parts

According to the Ministry of Finance, in order to further promote structural reforms on the supply side, and to encourage the transformation and upgrading of the automobile industry, from July 1, 2018, import tariffs on automobile will be reduced by 15% and tariffs on parts will be reduced by 6%.

 

6.  Ministry of Communications: General Plan for Cancellation of Highway Toll Stations

The Ministry of Transport held a press conference in August to issue the "2017 Toll Road Statistics Bulletin".  This was to announce the potential closure of certain highway toll stations and other relevant information.

 

7.  Regulations on E-commerce Operators to Come In-force

On August 31, 2018, the Fifth Session of the Standing Committee of the 13th National People's Congress voted to pass the Electronic Commerce Law. This law was incorporated into the legislative plan in 2013 by the NPC Financial and Economic Committee and had a 5 year grace period.  

  • The maximum fine that a regulator can penalize a platform is 2 million RMB.

  • If an intellectual property right holder believes that his IP rights have been infringed upon, he/she has the right to notify the operators of the e-commerce platform to take necessary measures such as deleting, blocking, disconnecting, and terminating transactions and services. The notice should include prima facie evidence of the infringement.

  • E-commerce operators shall fulfill their tax obligations in accordance with the law and shall enjoy tax benefits in accordance with the law.

  • E-commerce law should be compatible with international rules and enhance the international competitiveness of China's e-commerce and digital economy.

 

8.  New National Standard of "Express Packaging Supplies" to be Implemented from September 2018

According to the "Labor Daily", with the explosive development of the e-commerce industry, the treatment of the massive "express delivery waste" has become a problem. In the first half of this year, the General Administration of Quality Supervision and the Standardization Administration issued a new revised series of "Express Delivery Supplies" national standards to meet the requirements of “reduction, environmental-friendly and recyclable”. It is understood that the new version of the national standard is a recommended standard, to be implemented from September 1, 2018.

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