Measures for the Administration of the Circulation of Used Motor Vehicles

Por AaronLi

15 de diciembre de 2025 12 min de lectura

The Measures for the Administration of the Circulation of Used Motor Vehicles is a regulatory framework issued jointly by the Ministry of Commerce, Ministry of Public Security, State Administration for Industry and Commerce, and State Administration of Taxation to strengthen oversight of used motor vehicle markets in China. Its main purpose is to regulate business activities in the used vehicle sector, protect the rights of buyers and sellers, and support the healthy development of the used vehicle circulation system.

Key points include:

Scope and Definitions: The measures apply to all used motor vehicle circulation activities within China. “Used motor vehicles” are defined as vehicles traded and transferred before reaching the mandatory scrapping standard.
Market and Business Entities: It sets legal requirements for used vehicle trading markets and business entities (such as dealers, auction firms, brokers, and appraisers) which must be properly registered and comply with relevant laws.
Transaction Standards: Sellers must provide accurate information on vehicle history, ownership, maintenance, and legal status. Verification of documents and disclosures is required to ensure transparency and consumer protection.
Conduct and Compliance: Operators must follow ethical business practices, lawfully pay taxes, and accept regulatory inspections. Misrepresentation or illegal transactions are subject to legal liabilities.
Supervision and Reporting: Government departments at various levels are responsible for supervising the used vehicle market, collecting transaction data, and sharing information to maintain market order.

Overall, the measures provide a comprehensive legal foundation for managing the used motor vehicle industry, promoting transparency, consumer rights protection, and standardized market operations.

Original : Measures for the Administration of the Circulation of Used Motor Vehicles

(Promulgated by Decree No. 2 of the Ministry of Commerce, the Ministry of Public Security, the State Administration for Industry and Commerce, and the State Administration of Taxation on August 29, 2005; revised in accordance with the Decision of the Ministry of Commerce on Repealing and Amending Certain Rules on September 14, 2017)

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the relevant national laws and administrative regulations for the purpose of strengthening the administration of the circulation of used motor vehicles, regulating the business operations of used motor vehicles, safeguarding the legitimate rights and interests of both parties to used motor vehicle transactions, and promoting the healthy development of the circulation of used motor vehicles.

Article 2

These Measures shall apply to the engagement in business activities related to used motor vehicles or activities associated with used motor vehicles within the territory of the People's Republic of China.

For the purpose of these Measures, "used motor vehicles" refer to motor vehicles (including three-wheeled motor vehicles, low-speed trucks, i.e., the former agricultural transport vehicles, the same below), trailers, and motorcycles that are traded and whose ownership is transferred from the completion of registration procedures to the time before reaching the national mandatory scrapping standards.

Article 3

A "used motor vehicle trading market" refers to a place established in accordance with the law to provide centralized trading of used motor vehicles and related services for both buyers and sellers.

Article 4

A "used motor vehicle business entity" refers to an enterprise registered in accordance with the law by the administrative department for industry and commerce and engaged in the distribution, auction, brokerage, or appraisal and evaluation of used motor vehicles.

Article 5

"Used motor vehicle business operations" refer to the distribution, auction, brokerage, appraisal and evaluation of used motor vehicles, etc.

Used motor vehicle distribution refers to the business activity of a used motor vehicle distribution enterprise purchasing and selling used motor vehicles;
Used motor vehicle auction refers to the business activity of a used motor vehicle auction enterprise transferring a used motor vehicle to the highest bidder through public bidding;
Used motor vehicle brokerage refers to the business activity of a used motor vehicle brokerage institution engaging in intermediation, brokerage, or agency services to facilitate the transaction of used motor vehicles between others for the purpose of collecting commissions;
Used motor vehicle appraisal and evaluation refers to the business activity of a used motor vehicle appraisal and evaluation institution conducting appraisal and evaluation on the technical status and value of a used motor vehicle.

Article 6

"Direct transaction of used motor vehicles" refers to the transaction activity in which the owner of a used motor vehicle sells the vehicle directly to the buyer without going through a distribution enterprise, an auction enterprise, or a brokerage institution. Direct transactions of used motor vehicles shall be conducted in a used motor vehicle trading market.

Article 7

The competent commercial department, the administrative department for industry and commerce, and the tax department of the State Council shall be responsible for the supervision and administration of the circulation of used motor vehicles within their respective functions and responsibilities.

The competent commercial departments, administrative departments for industry and commerce, and tax departments of provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan (hereinafter referred to as "provincial-level competent commercial departments") shall be responsible for the supervision and administration of the circulation of used motor vehicles within their respective administrative regions.

Chapter II Establishment Conditions and Procedures

Article 8

Operators of used motor vehicle trading markets, used motor vehicle distribution enterprises, and brokerage institutions shall meet the conditions for an enterprise legal person and go through registration procedures with the administrative department for industry and commerce in accordance with the law.

Article 9

The establishment of a used motor vehicle auction enterprise (including a foreign-invested used motor vehicle auction enterprise) shall comply with the relevant provisions of the Auction Law of the People's Republic of China and the Measures for the Administration of Auctions, and go through the procedures as prescribed in the Measures for the Administration of Auctions.

Article 10

Foreign-funded mergers and acquisitions of used motor vehicle trading markets and business entities, and the addition of the business scope of used motor vehicles by established foreign-invested enterprises shall go through the procedures as prescribed in Article 9.

Chapter III Code of Conduct

Article 11

Operators of used motor vehicle trading markets and used motor vehicle business entities shall operate and pay taxes in accordance with the law, abide by business ethics, and accept supervision and inspection conducted in accordance with the law.

Article 12

The seller of a used motor vehicle shall have the ownership or the right to dispose of the vehicle. Operators of used motor vehicle trading markets and used motor vehicle business entities shall verify the seller's identity certificate, the vehicle license plate, the Motor Vehicle Registration Certificate, the Motor Vehicle Driving License, the valid motor vehicle safety and technical inspection qualification mark, the vehicle insurance policy, and the certificates for tax payment, etc.

When state organs, state-owned enterprises, and public institutions sell or entrust the auction of vehicles, they shall hold the asset disposal certificate issued by the entity itself or its superior entity.

Article 13

Those who sell or auction vehicles without ownership or the right to dispose of them shall bear corresponding legal liabilities.

Article 14

The seller of a used motor vehicle shall provide the buyer with true information and details about the vehicle's use, maintenance, accidents, inspection, as well as whether the vehicle has gone through mortgage registration, tax payment, and the scrapping period, etc. If the buyer is unable to go through the ownership transfer registration due to the seller's concealment or fraud, the seller shall unconditionally accept the return of the vehicle and refund the purchase price and other expenses.

Article 15

When selling a used motor vehicle, a used motor vehicle distribution enterprise shall provide the buyer with a quality guarantee and an after-sales service commitment, and clearly display them at its business premises.

Article 16

A contract shall be signed for the transaction of a used motor vehicle. The model text of the contract shall be formulated by the administrative department for industry and commerce of the State Council.

Article 17

If the owner of a used motor vehicle entrusts another person to handle the sale of the vehicle, he/she shall sign a power of attorney with the agent.

Article 18

When entrusting a used motor vehicle brokerage institution to purchase a used motor vehicle, both parties shall proceed in accordance with the following requirements:

The principal shall provide the used motor vehicle brokerage institution with a legal identity certificate;
The used motor vehicle brokerage institution shall select vehicles in accordance with the principal's requirements and promptly inform the principal of market information;
When the used motor vehicle brokerage institution accepts the entrustment to purchase a vehicle, both parties shall sign a contract;
The used motor vehicle brokerage institution shall, in accordance with the principal's requirements, handle the vehicle appraisal and evaluation on behalf of the principal, and the expenses incurred for the appraisal and evaluation shall be borne by the principal.

Article 19

After the completion of the used motor vehicle transaction, the seller shall promptly deliver the vehicle, the license plate, and the statutory certificates and documents of the vehicle to the buyer. The statutory certificates and documents of the vehicle mainly include:

Motor Vehicle Registration Certificate;
Motor Vehicle Driving License;
Valid motor vehicle safety and technical inspection qualification mark;
Vehicle purchase tax payment certificate;
Road maintenance fee payment certificate;
Vehicle and vessel use tax payment certificate;
Vehicle insurance policy.

Article 20

The following vehicles are prohibited from being distributed, traded, auctioned, or brokered:

Vehicles that have been scrapped or have reached the national mandatory scrapping standards;
Vehicles under mortgage or customs-supervised vehicles that are traded without the approval of the customs;
Vehicles that are under seal or detention by the people's courts, people's procuratorates, or administrative law enforcement departments in accordance with the law;
Vehicles obtained through illegal and criminal means such as theft, robbery, or fraud;
Vehicles whose engine number, vehicle identification number, or frame number is inconsistent with the registered number, or shows signs of alteration;
Smuggled vehicles or illegally assembled (built-up) vehicles;
Vehicles without the certificates and documents listed in Article 19;
Vehicles registered with the traffic administrative department of the public security organ outside the administrative area;
Vehicles prohibited from being operated by national laws and administrative regulations.

If operators of used motor vehicle trading markets or used motor vehicle business entities discover that a vehicle falls into one of the categories specified in Items (4), (5), and (6), they shall promptly report to the public security organ, the administrative department for industry and commerce, and other law enforcement organs.

In case of trading illegal vehicles, the operators of used motor vehicle trading markets and used motor vehicle business entities shall bear joint and several liability for compensation and other corresponding legal liabilities.

Article 21

When a used motor vehicle distribution enterprise sells a used motor vehicle or an auction enterprise auctions a used motor vehicle, it shall issue a unified invoice supervised by the tax authority to the buyer in accordance with the provisions.

For direct transactions of used motor vehicles and transactions of used motor vehicles through used motor vehicle brokerage institutions, the operator of the used motor vehicle trading market shall issue a unified invoice supervised by the tax authority to the buyer in accordance with the provisions.

Article 22

After the completion of the used motor vehicle transaction, the current vehicle owner shall go through the ownership transfer registration procedures in accordance with the provisions of laws and regulations on the strength of the unified invoice supervised by the tax authority.

Article 23

Operators of used motor vehicle trading markets shall provide fixed premises and facilities for used motor vehicle business entities, and provide conditions for customers to handle procedures such as used motor vehicle appraisal and evaluation, ownership transfer registration, insurance, and tax payment. Used motor vehicle distribution enterprises and brokerage institutions shall, in accordance with the customers' requirements, handle procedures such as used motor vehicle appraisal and evaluation, ownership transfer registration, insurance, and tax payment on behalf of the customers.

Article 24

The appraisal and evaluation of used motor vehicles shall be conducted on the principle of voluntariness of both the buyer and the seller, and shall not be mandatory; the appraisal and evaluation of used motor vehicles that are state-owned assets shall be conducted in accordance with the relevant provisions of the state.

Article 25

Used motor vehicle appraisal and evaluation institutions shall follow the principles of objectivity, authenticity, fairness, and openness, conduct the business of used motor vehicle appraisal and evaluation in accordance with national laws and regulations, and issue vehicle appraisal and evaluation reports; they shall bear legal liabilities for the contents of the appraisal and evaluation report regarding the technical status of the vehicle, including whether the vehicle is an accident vehicle, etc.

Article 26

Used motor vehicle appraisal and evaluation institutions and their personnel may engage in appraisal and evaluation business for case-related vehicles and accident vehicles in accordance with the relevant provisions of the state.

Article 27

Operators of used motor vehicle trading markets and used motor vehicle business entities shall establish complete archives for the purchase and sale, trading, auction, brokerage, and appraisal and evaluation of used motor vehicles.

Article 28

The establishment of a used motor vehicle trading market and the opening of stores by used motor vehicle distribution enterprises shall comply with the relevant provisions of the local city development and urban commercial development.

Chapter IV Supervision and Administration

Article 29

The supervision and administration of the circulation of used motor vehicles shall follow the principles of breaking monopolies, encouraging competition, promoting development, and being fair, just, and open.

Article 30

A filing system for operators of used motor vehicle trading markets and used motor vehicle business entities shall be established. All operators of used motor vehicle trading markets and used motor vehicle business entities that have been legally registered with the administrative department for industry and commerce and obtained a business license shall file with the provincial-level competent commercial department within 2 months from the date of obtaining the business license. The provincial-level competent commercial departments shall regularly submit the filing information of operators of used motor vehicle trading markets and used motor vehicle business entities to the competent commercial department of the State Council.

Article 31

A system for submitting and publishing information on the circulation of used motor vehicles shall be established and improved. Operators of used motor vehicle trading markets and used motor vehicle business entities shall regularly submit information such as the transaction volume and transaction amount of used motor vehicles to the provincial-level competent commercial department through the local competent commercial department. The provincial-level competent commercial departments shall summarize the above information and submit it to the competent commercial department of the State Council. The competent commercial department of the State Council shall regularly publish information on the national circulation of used motor vehicles to the public.

Article 32

The competent commercial departments and administrative departments for industry and commerce shall take effective measures within their respective functions and responsibilities to strengthen the supervision and administration of operators of used motor vehicle trading markets and business entities, investigate and deal with illegal and irregular acts in accordance with the law, maintain market order, and protect the legitimate rights and interests of consumers.

Article 33

The administrative department for industry and commerce of the State Council, together with the competent commercial department, shall establish a credit file for operators of used motor vehicle trading markets and used motor vehicle business entities, and regularly publish the list of enterprises that have violated the rules.

Chapter V Supplementary Provisions

Article 34

These Measures shall come into force on October 1, 2005. The Circular of the General Office of the Ministry of Commerce on Regulating the Administration of the Appraisal and Evaluation of Used Motor Vehicles (Shang Jian Zi [2004] No. 70), the Circular on Strengthening the Administration of the Used Motor Vehicle Market (Guo Jing Mao Mao Yi [2001] No. 1281), the Measures for the Administration of Used Motor Vehicle Transactions (Nei Mao Ji Zi [1998] No. 33), and all kinds of documents issued on the basis thereof shall be repealed simultaneously.