Domestic and Foreign Automakers to Comply

　　On July 2 the State Administration of Quality Supervision announced that the draft of Auto Products Recall Supervision and Management Regulations had been issued, according to the Jinghua Times. On the basis of Defected Vehicles Recall Regulations, the new policy will make some adjustments.

　　According to the draft of Auto Product Recall Supervision and Management Regulations, domestic and imported car manufacturers have to comply with the new rule. Compared with the previous rules, new regulations increased the penalties. If manufacturers deliberately conceal the defects of auto products or companies fail to order recalls asked by authorities, they have to shoulder criminal liability. The maximum fine may total up to half of the products' price.

　　Specific regulation rules

　　Imported cars are listed into the scope of recalls. The draft identifies the application of the regulations. All the Made-in-China and imported vehicles which are sold in China will be under supervision of the new policy. The recalls and management have to comply with the rules. At the same time, the draft offers a clear definition for the manufacturers, including those domestic manufacturers registered in China which produce products and issue quality certificates, and those foreign companies which sell vehicles to Chinese market. The importers and agents of foreign automakers are also listed as manufacturers. Therefore, the new regulation rule has put foreign automakers which participate in Chinese market under supervision. They should follow the same practice as domestic automakers.

　　Imports of the recalled products suspended

　　The draft of Auto Product Recall Supervision and Management Regulations rule that after producers confirm a defective product or receive recall notice from regulators, they shall immediately stop production, sale, import defective auto products, inform the seller to stop selling, inform the user defects, risk, the safe use advice and preventive measures of products. It is noteworthy that for the ordered recall of defective auto products, national certification and accreditation regulatory department shall order the certification body to suspend or withdraw the mandatory certification of automotive products, and customs should stop declarations for imported vehicles.

　　Refusing to recall can be confiscated half of the money highest

　　Through comparison of old and new recall provisions, we can find in the past if auto companies and the operators fail to perform their recall obligations, the authorities only warn them and request to recall, and the maximum amount of penalty was only 30,000 yuan. Experts said this couldn’t have a powerful deterrent effect on auto manufacturers. The new regulations will have zero tolerance on such a behavior and to increase its penalty on auto manufacturers and operators that don’t default recall obligation once their products have defects.

　　Among them, if producers don’t recall after regulators request them to recall, The draft of Auto Product Recall Supervision and Management Regulations rule that illegal behaviors that violate laws and regulations of product quality, will be punished in accordance with relevant laws and regulations; illegal behaviors that don’t violate laws and regulations of product quality shall be ordered to stop production, sale, import, and fine them according to above 5% and below 50% of goods value that are produced, sold and imported illegally.; If illegal producers have illegal income, it shall be confiscated; For serious cases, illegal sides should be ordered to stop operation. (Translator: Qinghua Wade/Hanxin)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100703/n273253296.shtml