Deputies of the 11th meeting of the Standing Committee on the revision of the People's Republic of China auction law decisions (August 28, 2004, deputies of the 11th meeting of the Standing Committee) to deputies of the 11th meeting of the Standing Committee decided to People's Republic of China auction law as follows: first, by deleting the fifth paragraph. Bis, by deleting 12th fifth. This decision shall come into force as of the date of. People's Republic of China auction law be modified in accordance with this decision, republished. Attachment: People's Republic of China auction law (2004 revision) (July 5, 1996 meeting of the Standing Committee of the national people's Congress of the 20th through July 5, 1996, People's Republic of China President to 70th release effective as of January 1, 1997, on August 28, 2004 deputies of the 11th meeting of the Standing Committee adopted, on August 28, 2004 People's Republic of China presidential order released 23rd, As of the date of promulgation of the deputies of the 11th meeting of the Standing Committee on revising People's Republic of China decided to auction Law Amendment) contents chapter I General provisions chapter II auction auction parties in chapter III of section I section II section III of the principal bidders auctioneer buyer in the fourth section the fourth auction procedures auction for the first section of Chapter delegates Section II of the auction notice and display section III Commission in implementation of the fourth section of the fifth chapter of the auction legal responsibility for the sixth chapter supplementary articles chapter I General provisions article in order to standardize the auction, maintaining the order of auction to protect auction the legitimate rights and interests of all parties, this law is enacted. Second law applies to People's Republic of China territory auction company auctions. Third auction is in the form of public bidding, specific goods or property rights are transferred to the highest price of the sale. Fourth auction shall abide by the relevant laws, administrative regulations, follow the principle of openness, fairness, impartiality and good faith. The fifth section is responsible for managing the Department under the State Council to supervise and administer the auction industry nationwide. Provinces, autonomous regions and municipalities directly under the people's Government of district and municipal people's Government is responsible for managing the Department to supervise and administer the auction industry within their respective administrative areas. Chapter Sixth auction of the auction shall be owned by trustees or may dispose of the goods or property rights according to law. Seventh law or administrative regulations to prohibit the sale of the goods or property rights, and shall not be used as an auction. Eighth article in accordance with the law or provisions need to be approved by the State Council to transfer the goods or property rights, prior to the auction, shall go through examination and approval procedures. Auction of cultural relics, in front of the auction shall be subject to the Administrative Department for cultural relics identification according to law of the domicile of the auctioneer, licensed. Nineth State executive authorities confiscated goods, offset of taxes, fines and other items, in accordance with the provisions of the State Council shall be consigned for sale, the property is located of the province, autonomous region, municipality directly under the people's Governments and districts specified by the people's Government of the auctioneer to auction. Auction items confiscated by the people's Court, items used to fines, penalties and unable to return recovered items, provisions of the preceding paragraph shall apply. Tenth chapter party section of the auction the auction house auction is defined in accordance with this law and the People's Republic of China company law the establishment of enterprises engaged in auction activities. 11th auction business can be divided into districts in the city. Established auction location of the enterprise must be approved by the provinces, autonomous regions and municipalities are responsible for managing the Department licenses and apply to the Administration for industry and commerce registration to obtain business licenses. 12th article established auction enterprise, should has following conditions: (a) has 1 million Yuan Yuan above of registered capital; (ii) has himself of name, and organization institutions, and residence and articles; (three) has and engaged in auction business phase adapted of auction Division and other staff; (four) has meet this method and other about legal provides of auction business rules; (five) meet state about auction industry development of provides; (six) legal, and administrative regulations provides of other conditions. 13th auction of cultural relics auction business should have registered capital of at least 10 million Yuan, and have staff with expertise in heritage auctions. 14th auction should be presided over by the auctioneer. 15th the auctioneer shall satisfy the following conditions: (a) with a university or college education and professional expertise of auction, (ii) more than two years ' experience in the auction business, and (iii) good. Have been dismissed or auctioneer certificates were revoked for five years, or for deliberately committing a criminal punishment shall not serve as auctioneers. 16th auctioneer qualification examination organized by the auctioning industry association. Qualified through examination by the auction industry associations shall be issued auctioneer qualification certificates. 17th auction industry association was established according to law and corporate social groups, is a self-regulating organization for the auction industry. The auctioning industry association in accordance with this law and in accordance with the Constitution, to supervise the auction enterprises and auctioneers. 18th auction has the right to require clients to explain the auction of origin and any flaw. The auctioneer shall explain to the bidder auction drawbacks of. 19th auctioneer auction items submitted by the trustee has the obligation of custody. 20th after the auctioneer accept a delegate, without the client's consent and may not authorize any other auctioneer. 21st seller and buyer requirements to keep their identities secret, the auctioneer shall keep secret for him. 22nd auctioneer and their staff shall not participate in organized auction bidder activity, and shall not authorize any other person to bid for them. 23rd in organizing auctions, the auctioneer shall not sold his goods or property rights. 24th after an auction, the auctioneer shall deliver to the client as agreed price of the auction, and in accordance with the agreement will transfer to the buyer of the auction. Section II client 25th client refers to entrust an auctioneer, goods or property rights of the citizens, legal persons or other organizations. 26th principal may deal with the auction procedures or its agent to handle the auction process. 27th the client shall indicate to the auctioneer auctioning origin and any flaw. 28th the client has the right to determine the reserve price of the auction and auctioneer confidential. Auction of State-owned assets, in accordance with the law or in accordance with the provisions of the State Council of needs assessment, shall be subject to an evaluation agency established by law and based on the assessment results determine the reserve price of the auction. 29th a trustee may withdraw an auction before the auction begins. Client withdrew the auction should pay the agreed fee to the auction house; no agreement, shall pay the auctioneer reasonable expenses incurred for the auction. 30th a trustee shall not participate in bidding, nor authorize others to bid for them. 31st in accordance with the contract by the principal transfer of the auction, after the auction is completed, the principal should be handed over to the buyer of the auction. Section III 32nd bidder means a bidder to bid auction of citizens, legal persons or other organizations. The 33rd law and administrative regulations prescribed by the conditions of sale of the lot, the bidder shall meet the prescribed conditions. 34th bidders can participate in bidding, or authorize an agent to participate in bidding. 35th bidders have the right to understand the flaws of the auction, the right to inspect the auction and check out information on the auction. Once the bidding price of the 36th article may not be withdrawn, when other bidders when there is a high price, its price is the loss of binding. 37th among bidders, bidders and auctioneers must not maliciously and damage the interests of others. 38th the fourth section the buyer refers to the highest bidding price the buyer purchases an auction bidder. 39th the buyer shall pay the auction price in accordance with the contract, is not in accordance with the agreed payment shall be liable for breach of, the consent of the seller or the auction house agreed to, will auction the auction again. Auction auction again, the original buyer shall pay the auction for the first time and the principal shall pay the Commission. Price is lower than the original auction price auction again, the original buyer shall make up the difference. 40th buyer who fails to obtain an auction as agreed, and the right to auction or trustee liable for breach of. Buyer does not take delivery of the auction as agreed, and the resulting storage costs shall be paid. Fourth section I of chapter auction procedures auction the seller 41st auction items or property rights, and shall provide proof of identity and auctioneer auction required proof of ownership or proof of law can dispose of the auction and other information. 42nd auctioneer shall be provided by the client concerning documents and data verification. The auctioneers commissioned, should sign a written consignment auction contract with the client. 43rd auction auctioneer thinks need to be identified, may do so. The identification and the consignment auction contract specified does not match the conditions of the auction, the auctioneer entitled to modify or rescind the contract. 44th article delegate auction contract should contains Ming following matters: (a) client, and auction people of name or name, and residence; (ii) auction standard of of name, and specifications, and number, and quality; (three) client proposed of retained price; (four) auction of time, and locations; (five) auction standard of delivered or transfer of time, and way; (six) Commission and paid of way, and term; (seven) price of paid way, and term; (eight) default responsibility; (IX) other matters agreed upon by both parties. Section II of the auction notice and display the 45th auctioneer shall, within seven days before the date of the auction post auction announcements. 46th auction notice shall contain the following particulars: (a) the time and place of the sale; (b) auction, and (iii) display time and place of the auction and (iv) participating in the bidding shall handle formalities (e) other matters need to be announced. 47th auction notice shall be issued through newspapers or other news media. 48th auctioneer shall display auction before the auction and provide viewing conditions of the auction and related information. The display time of the auction shall be not less than two days. Section III implementing the 49th article of an auction the auctioneer shall before an auction announced auction rules and considerations. 50th no reserve price auction, the auctioneer shall make this clear before the auction. Reserve price auction, the bidders when the highest bid does not meet the reserve price, the price shall not be valid, auctioneers auction auction should be discontinued. 51st bidder's maximum bid the auctioneer's hammer or in other manner publicly confirmed the conclusion of the auction. The 52nd after the auction is completed, the buyer and the auctioneer shall sign a confirmation. The 53rd auction the auctioneer, auction record shall be made. Auction record shall be signed by the auctioneer and the recorder; auction, and shall also be signed by the buyer. 54th auctioneer shall keep relevant business activities of the complete book, auction record and other related information. Books, prescribed in the previous auction record retention period and other relevant information, since the date on which the consignment auction contract terminated, shall not be less than five years. 55th auction of certificates of need according to the subject of change, ownership transfer procedures, seller and buyer shall hold a certificate from the auctioneer sold certificates and related materials, in continued with the relevant administrative authority. Fourth Commission article 56th seller and buyer can contract with the auction house Commission rate. Seller and buyer and the auctioneer Commission percentage, no agreement the conclusion of the auction, the auctioneer can contribute to the seller and a buyer the charge does not exceed the price 5% Commission. Charging the Commission rate determined according to the principle of equal is inversely proportional to the auction. Auctions of unsold, the auctioneer may collect from the trustee agreed costs; no agreement, you can charge the client reasonable expenses incurred for the auction. 57th auction transactions concluded on the Nineth items under this law, the auctioneer may collect from the purchaser does not exceed the auction Commission of 5%. Charging the Commission rate determined according to the principle of equal is inversely proportional to the auction. Not sold by auction, the provisions of this law shall apply to the 56th article. Fifth chapter legal liability article 58th sixth of the principal in violation of the law stipulates that auction not ownership or shall not dispose of goods or property rights, shall bear the responsibility. Auctioneer auction clearly knowing that the client's goods or property rights or ownership shall not be punished according to law, shall bear joint and several liability. The 59th State organs in violation of the provisions of article Nineth, shall entrust the property is located of the province, autonomous region, municipality directly under the people's Government or city divided into districts designated by the people's Government of auctioneer to dispose of the goods, directly responsible to the head of personnel and other persons directly responsible shall be given administrative punishments, causes losses to the State, should also be liable. 11th of the 60th article violates this law provides that unauthorized auction enterprises registered, by the Administrative Department for industry and commerce shall be banned, confiscated and illegal gains more than 1 time fined not more than five times. Violation of the 18th article 61st of auctioneers, the principal article, the provisions of article 27th, did not explain the drawbacks of the auction, causing damage to the buyer, the buyer has the right to demand compensation from the auctioneer; responsibility belongs to the client, the auctioneer shall be entitled to recourse against the client. Auctioneers, clients that cannot guarantee an auction before the auction the authenticity or quality, and does not assume liability for warrant of defects. Not declared by the flaws of the auction, request compensation for the limitation period of one year, the party knew or should have known that the right to be counted from the date of injury. Auction defects cause personal injuries or property damages indemnity limitation period, application of the People's Republic of China product quality law and other relevant provisions of the law. 62nd auction and its staff shall violate the provisions of this article 22nd, participate in bidding or authorize any other person to bid, given a warning by the Administrative Department for industry and commerce the auction house, auction Commission fined a maximum of five times more than 1 time times in serious cases, revoke their business licenses. 63rd in violation of provisions of this law 23rd, in organizing auctions, the auctioneer sold his goods or property rights, by the industry and commerce administration confiscated the proceeds. 30th of the 64th article violates this law stipulates that clients participate in bidding or authorize any other person to bid, industrial and commercial administration sector clients at the auction can be fined not more than 30%. 37th of the 65th in violation of this law stipulates that between bidders, malicious collusion between bidders and the auction house, harm is done to others the auction invalid, shall bear the liability for damages. By the Administrative Department for industry and commerce should the bidder involved in malicious collusion at the highest price of 10% more than 30% of fine involved in malicious collusion at the highest price of the auction house 10% up to 50% the fine. 66th in violation of the fourth chapter of this law provisions relating to the percentage of Commission in the fourth section, the auctioneer shall return that part in excess of seller and buyer. Price control Department auctioneers auction commissions more than 1 time times can be fined not more than five times. The sixth chapter supplementary articles article 67th foreigner, foreign enterprise and organization in the People's Republic of China territory of auction or participate in bidding, this law shall apply. 68th the auction enterprises established before the implementation of this law, does not have the conditions prescribed by this law, shall meet the provisions of this law within the prescribed time limit conditions fails to meet the conditions laid down in this law, by the Administrative Department for industry and commerce to cancel the registration, collection of business license. Specific measures for implementation shall be formulated separately by the State Council. 69th article this law shall enter into force on January 1, 1997.