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Auction Management

Original Language Title: 拍卖管理办法

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(December 2, 2004 the Ministry of Commerce released 2004 24th come into force on January 1, 2005) Chapter I General provisions article standard auctions, maintaining the order of auction, promoting the auction industry opening to the healthy development of promoting the auction industry, according to the People's Republic of China auction law (hereinafter referred to as the auction law) and the laws, administrative rules and regulations relating to foreign investment, these measures are formulated.
    Second approach applies to People's Republic of China territory auction company auctions.
    Commercial auction, the auction enterprises should be established by law.
    Article auctions business in these measures refers to legally set up in China engage in business of auctions of a limited liability company or Corporation.
    Fourth Ministry of Commerce auction industry administration, to supervise and administer the auction industry nationwide.
    People's Governments of provinces, autonomous regions and municipalities (hereinafter provincial) and the district municipality (hereinafter referred to as city-level) departments in charge of Commerce auction industry supervise and management within their respective administrative areas.
    Article fifth auction enterprise engaged in the auction, shall comply with the auction law and other relevant provisions of laws and administrative rules and regulations, follow the principle of openness, fairness, impartiality and good faith.
    Chapter II establishment of an auction enterprise, change and termination article sixth application established auction company's investors should have a good reputation, not violate Chinese laws, administrative regulations, and rules of behavior.
    Seventh 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 articles; (three) has fixed of Office places; (four) has three name above made auction industry practitioners qualification of personnel, which at least has one is auction Division; and has and main business close contact of industry practitioners qualification of full-time or part-time personnel; (five) has meet about legal, and administrative regulations and the this approach provides of auction business rules;
    (F) consistent with the commercial Administrative Department of the relevant auction industry development plan.
    Eighth article application established auction enterprise, should submitted following material: (a) applications; (ii) company articles, and auction business rules; (three) business administration organ issued of Enterprise name advance approved notice; (four) intends any statutory representative people resume and effective identity proved; (five) intends appointment of auction Division practice industry qualification certificate and the practitioners of related qualification proved; (six) fixed Office places property proved or rental contract.
    Nineth auction enterprise engaged in the auction of cultural relics shall follow the provisions of laws and administrative regulations relating to heritage auctions.
    National administrative organ law confiscated of items, filling arrived tax, and fine of items, and Court law confiscated of items, filling arrived fine, and fine of items and cannot returned of recovered items and other special State-owned assets, subject matter of auction should by has corresponding auction qualification of auction enterprise bear, specific qualification conditions by provincial business competent sector with about sector according to specification management, and preferred selection of principles developed, and reported Commerce record. Article tenth Enterprise name shall conform to the business name registration of the relevant provisions.
    Auction company name shall be indicated in the "auction". 11th article auction enterprise application established branch, should meet following conditions: (a) meet auction industry development planning; (ii) annual qualified; (three) enterprise of registered capital many Yu 5 million Yuan Yuan and all paid clear, auction enterprise on each branch, needed allocated not less than 1 million Yuan Yuan of funds or real; (four) branch due two name above made auction industry practitioners qualification of personnel, and has and main business close contact of industry practitioners qualification of full-time or part-time personnel; (five) has fixed of Office places
    (Vi) business auction business for more than three years, the last two years of continuous profits, auction exceeded 50 million Yuan a year earlier; or the auction exceeded 200 million Yuan a year earlier.
    12th article auction enterprise established branch, applicants need submitted following material: (a) intends established branch of application report; (ii) enterprise corporate license copy (copies); (three) recently two years by accountants firm audit of annual financial statements; (four) intends any branch head resume and the effective identity proved; (five) intends appointment of auction Division practice industry qualification certificate and the practitioners of related qualification proved; (six) fixed Office places of property proved or rental contract. Article 13th auction enterprises and branch offices, in accordance with the following procedure: apply for the establishment of the auction enterprises and branch offices, must first be approved by corporate or branch is located the municipal departments in charge of Commerce review, approved by provincial-leveled Commerce authorities and auction management issued the certificate of approval.
    Applicants holding auction management certificate of approval to the local administration for industry and commerce registration.
    Provincial-leveled Commerce departments over auction enterprises and branches to set up licensing hearing can be taken.
    Auction management certificate of approval by the Ministry of Commerce printed.
    14th auction enterprises registered with the industrial and commercial administration authorities apply for registration of change currently, should be submitted to the provincial departments in charge of Commerce, and renewal by auction management certificate of approval.
    15th auction company and subsidiaries from the date of certificate of approval for collection management, has not received a business license within six months, the auction business approval certificates expire automatically.
    Enterprise and the branch opened six months after the establishment of the auction, or six months in a row after opening without justification does not hold auctions or no business tax certificate, the relevant Department shall revoke its business license, business certificate of approval by the competent departments to recover their auction business.
    16th auction business in accordance with the articles, resolutions of the shareholders ' meeting or other subject matter dissolved; or due to violation of laws, administrative regulations and these rules were ordered to close down; or being unable to repay debts, is declared bankrupt according to law by the relevant departments to log off.
    Chapter auction enterprises established with foreign investment, change and termination article 17th auction auction enterprises with foreign investment may engage in business activities, except as otherwise provided in laws and administrative regulations.
    18th to encourage strong economic strength, auction of advanced technology and management experience, extensive international auctions auctions of foreign investment enterprises established marketing network of foreign investors.
    19th setting up a auction enterprises with foreign investment shall be consistent with this article seventh provided shall comply with the following conditions: (a) meet the registered capital and total investment of the enterprises with foreign investment regulations, (ii) auctions in General, the term of operation of enterprises with foreign investment of no more than 30 years, the term of operation of the auction of foreign investment enterprises established in the Midwest generally does not exceed 40 years.
    20th has approved the establishment of foreign-funded enterprises applying for establishing a branch of the auction, except in accordance with the way 11th section, should also participate in the joint annual inspection of foreign-invested enterprises on time and qualified.
    21st article established foreign investment auction enterprise, applicants except submitted this approach eighth article provides of material outside, also should submitted following material: (a) contract, and articles (foreign auction Enterprise only submitted articles) and annex,; (ii) investment parties of Bank funding letter proved, and registration registered proved (copies); (three) investment parties by accountants firm audit of recently one years of audit report; (four) China investors intends input to Sino-foreign joint venture, and cooperation auction enterprise of State-owned assets of assessment report;
    (E) the proposed auction enterprises with foreign investment list of Board members and investment directors appointed.
    Auctions of foreign investment enterprises to set up branch offices, the applicant in addition to the provisions of article 12th materials should also submit capital verification report. Established by article 22nd auction of foreign investment enterprises and branch offices, in accordance with the following procedures shall be followed: applicants should apply to the Commerce Ministry submitted 20th article material.
    MOFCOM shall from the date of receipt of all application materials in a specified period of time to make a decision on whether to approve, approve the establishment, issuance of certificate of approval for foreign-invested enterprises and auction management certificate of approval, not approved, should explain the reasons.
    The applicant shall receive foreign-invested Enterprise approval certificate and auction management within one month from the date of the certificate of approval to the local administration for industry and commerce registration.
    Auction of Department of foreign investment enterprises and branches of the establishment of licensing hearings can be taken.
    23rd auction enterprises with foreign investment to industrial and commercial administrative organ for change registration item, shall be approved by the Ministry of Commerce, auction and issue operating foreign-invested Enterprise approval certificate and certificate of approval.
    24th auction of foreign investment enterprise and branch was established six months after opening, or for six months after opening without justification does not hold auctions or no business tax certificate, the relevant Department shall revoke its business license, the Ministry of Commerce auction recovery business certificate of approval.
    25th auction of foreign investment enterprises according to the articles, resolutions of the shareholders ' meeting or the Board of directors or other subject matter dissolved; or for violation of laws, administrative regulations and these rules were ordered to close down; or being unable to repay debts, is declared bankrupt according to law by the relevant departments to log off.
    The fourth chapter auction employees and auction 26th State on sale and professional and technical personnel to implement the licensing system, personnel get auctioneer qualification certificates, upon registration, may be conducted by auction.
    Auctioneer in these measures refers to the unified national examinations, access to personnel, the Ministry of Commerce jointly printing, issued by the China Auction Industry Association of the People's Republic of China auctioneer qualification certificates and registration personnel. 27th auction auction enterprises registered in only one industry and not to the auctioneer is personally identifiable in any other auction companies part-time; auction may not be the People's Republic of China auctioneer qualification certificates lends or other units.

    28th the auctioneer may change the certified units.
    Certified auctioneer changes shall be made to the China auction industry association the registration procedures.
    Auctioneers China auction industry association should be registered and changes reported to the Ministry of Commerce on a monthly record.
    Article 29th the following banned auctions of goods or property rights: (a) laws and regulations to prohibit the sale, (ii) or disposition of ownership is in dispute, without justice, the right to executive authorities; (c) uncompleted customs procedures for goods under customs supervision.
    30th article auction enterprise should law carried out auction activities, shall not has following behavior: (a) rental, and unauthorized transfer auction right; (ii) on auction standard of for false publicity, to buy by people caused economic loss; (three) employment not law registered of auction Division or other personnel acted as auction Division presided over auction activities of; (four) used malicious reduced Commission proportion or below auction activities cost charged Commission, even not charged Commission (meaning took except) or give client rebate, means for not due competition of;
    (E) other acts that violate laws and regulations.
    31st auction enterprises found with public security authorities in an investigation of auction items or stolen shall immediately report to the local public security organs.
    32nd a bidder on whose behalf the agent bidding, bidder, and shall issue a power of Attorney certified copy of agent.
    Power of attorney should contain the agent's name or designation, representation, delegate permissions, and periods.
    33rd auction before the auction company auctions should be no transaction related issues with the client or client suspension or termination of liability for loss caused by the auction reached a written agreement on such matters.
    Article 34th for the client to send the auction, auction enterprises should be undivided, properly establishing auction system of custody, and the shift on duty, and to take the necessary safety precautions. 35th held auction company auctions should be according to the attributes of the subject matter and nature of the auction, in accordance with the auction law and related laws, administrative regulations, announcement of the date.
    Notice shall be published in the auction location and auction will be held to the commercial Administrative Department of the specified large circulation newspapers or other media that have the same effect.
    Article 36th auction enterprises should show auction prior to the auction, for bidders to view the auction conditions and provide relevant information to bidders.
    Display time should be not less than two days, except for fresh items or other fragile items.
    37th auction companies have the right to identify or require clients to explain the source of the auction in writing and any defects.
    Enterprise shall inform the bidder of their auction knew or should have known that the auction drawbacks.
    Article 38th of laws, administrative rules and regulations special provisions for the assignee of the auction, auction enterprises should be auctioned to comply with laws, administrative regulations and regulatory requirements for bidders.
    Auction is in accordance with the laws and administrative regulations and rules and regulations of administrative licensing qualification and are transferable according to law, the seller shall before the auction should be administrative licensing organ consent.
    39th auction companies may be established in the auction Commission bid on the table, and for all bidders in the auction description.
    40th article has following case one of of, should suspended auction: (a) no bid people participate in auction of; (ii) third people on auction standard of ownership or disposition right has dispute and spot provides effective proved of; (three) client in auction pre-session to due reason written notification auction Enterprise suspended auction of; (four) occurred accident event led auction activities temporarily cannot for of; (five) appeared other law should suspended of case of. Stop sale by auction company announced.
    Suspension of auction cause disappears, auctioning should be restored.
    41st article has following case one of of, should terminated auction: (a) Court, and arbitration institutions or about administrative organ finds client on auction standard of nowhere decentralization and written notification auction enterprise of; (ii) auction standard of was finds for booty of; (three) occurred force majeure or accident event led auction activities cannot for of; (four) auction standard of in auction Qian damage, and out lost of; (five) client in auction pre-session written notification auction Enterprise terminated auction of;
    (Vi) other situations shall be terminated in accordance with law. Terminate the auction announced by the auction company.
    After end of the auction, the principal requirement to continue the auction, should be back for the auction procedures.
    42nd auction of foreign investment enterprises and domestic auction companies combined in the People's Republic of China territory held an auction, the auction shall be in line with laws, administrative regulations and the relevant provisions of these measures.
    The fifth chapter regulatory 43rd on the auction industry developed by Ministry of commerce organizations regulations, policies, and guidance throughout the development of auction industry development plan, shall establish supervision and verification of the auction industry, industry statistics and credit management systems; responsible for the auction industry utilizing foreign capital promotion and management; the auction industry self-regulatory organization for operational guidance.
    44th provincial-leveled Commerce authorities are responsible for the development and implementation of auction industry development plan in the region, and the planning Ministry of Commerce for the record.
    Provincial departments in charge of Commerce shall establish a local auction company and supervision and verification of the practitioner and industry statistics and credit management systems; responsible for setting up the auction enterprises and branch audit licenses; management and guide the auction industry self-regulatory organization in the region. Provincial-leveled Commerce departments shall create conditions that establish and auction companies and other relevant administrative organs the archival computer systems of the Internet, of the circumstances of the auction business activity monitoring and processing of the results shall be recorded. Annual supervision over auction enterprises issued by the verification opinion.
    Verification failed auction company, shall order the rectification, and verification information to relevant departments. Article 45th auction industry association according to law and according to the regulations, to monitor the auction enterprises and auctioneers.
    Auction Industry Association should be auctioned to industry standards, strengthen industry self-regulation, coordination of member companies and the relevant government departments and the relationship between Member companies, providing services to member companies, maintaining the lawful rights and interests of the Member companies.
    Under the guidance of the Ministry of Commerce of China auction industry association, concrete implementation of a nationwide auction credit management system and auctioneer examination, assessment and qualification work.
    Sixth chapter legal liability article 46th unauthorized business auction business shall, in accordance with relevant regulations of the State shall be banned.
    47th article auction Division violation this approach 26th article, and 27th article provides or has to regulatory sector hide situation, and provides false material, other violations behavior of, provincial business competent sector can will its violations facts and the processing recommends notices China auction industry association, China auction industry association should in accordance with about provides on violations auction Division for processing, and will processing results in 10 a days within written CC auction Division practice industry to provincial business competent sector and industry association.
    48th auction company violates these measures article 29th, losses against the buyer, auction enterprises should be given compensation responsibility belongs to the client, auction companies have the right to recourse against the client.
    49th auction company violated article 30th (a), by the Department of Commerce at the provincial level shall be ordered to correct, and fines of between 30,000 yuan. 50th auction company in violation of this article 30th (c) provided by provincial-leveled Commerce authorities depending on the seriousness of the warning, fined and illicitly acquired more than 1 time times the amount, but not more than 30,000 yuan; no ill-gotten gains, fined 10,000 yuan fine.
    Causing loss to the seller and buyer, auction company shall give compensation.
    51st auction company violates these measures article 30th (ii), (iv) the provision, by the relevant administrative authority shall be legally punished.
    52nd auction company violates these measures stipulated in article 35th and 36th, before the auction announcement or show the violation of, be warned by the provincial-leveled Commerce departments depending on the seriousness, correction, postponed the auction or a fine of 10,000 yuan fine.
    53rd auction enterprise, the client in violation of these regulations 37th article does not explain the drawbacks of the auction, causing damage to the buyer, the buyer is entitled to request an auction Enterprise compensation; responsibility belongs to the client, auction companies have the right to recourse against the client. An auction enterprise, client statement prior to the auction does not guarantee the authenticity or quality of an auction, does not assume liability for warrant of defects (hereinafter referred to as the disclaimer).
    But auction companies, clients clearly knew or should have known that when there is a defect of the auction and disclaimer is not valid.
    54th after the auction is completed, the principal did not assist the buyer in accordance with the law license change, ownership transfer procedures, resulting in loss of buyer or auction companies, the principal shall give compensation.
    Client proposes to suspend or terminate the auction, causes losses to the auction company or the bidder, shall give compensation.
    55th under any of the following circumstances, provincial Commerce authorities or the Ministry of Commerce may revoke the auctioning of enterprises and branch offices to set up licensing decisions: (I) abuse their powers, neglect their duties to make decision on approving an establishment; (b) violations of the auction law and the establishment of conditions to approve the decision as provided herein, and (iii) beyond the statutory authority to approve the establishment of a decision. 56th staff in departments in charge of Commerce and industry associations work abuse, malpractice, negligence, bribe, the person in charge and the persons directly responsible shall be given administrative sanctions constitutes a crime, criminal responsibility shall be investigated according to law.

    57th Business Department staff to know in carrying out their duties the auctioning of enterprises, seller, bidder, buyer requirements for confidentiality of content should be according to the confidentiality provisions for confidentiality, caused leaks, according to relevant regulations.
    Auction businesses confidential materials submission to regulatory authorities, should be marked "confidential" and seal.
    Seventh chapter supplementary articles article 58th wholesale markets for agricultural products, motor vehicle trading markets such as commodities trading market, auctions and Internet auction business management, in principle, in accordance with the measures implemented, specific measures separately.
    59th State-owned auction enterprises should be carried out in accordance with the relevant provisions of the State reform.
    60th explain these measures by the Ministry of Commerce.
              61st these measures come into force on January 1, 2005.