Upgrading to State Council Regulations Automobile recall regulations introduced this year

China’s legal system for the recall of automobiles will be “upgraded” from departmental regulations to regulations of the State Council. Recently, the Legal Affairs Office of the State Council has issued Regulations on the Administration of Recall of Defective Automobile Products (Draft for Solicitation of Comments), and publicly seek public opinions. This Tuesday, the reporter learned from authoritative sources that the "Regulations on the Recall of Defective Automobile Products" has been included in the State Council's legislative plan and will be introduced this year.

The current "Regulations on the Recall of Defective Automobile Products", which was jointly issued by the AQSIQ and other four departments, was formally implemented on October 1, 2004. Relevant data show that since the implementation of the recall system for cars, China has recalled more than 370 vehicles and more than 6 million vehicles. The "Contract Draft" was drafted on the basis of summarizing the implementation experience of the current "Regulations on the Recall of Defective Automobile Products".

The draft of the Opinions stipulates that automobile manufacturers and operators should confirm the defects of automobile products and immediately stop production, sales, and import of defective automobile products and implement recalls. The refusal to implement a recall of defective products may directly revoke the relevant permit if the circumstances are serious. The Exposure Draft also pointed out that a vehicle manufacturer that violates the “car recall” management rules will be fined not less than RMB 500,000 but not more than RMB 1 million. The implementation of this punishment system will effectively promote the implementation of the mandatory recall system.

In addition, the manufacturer of an automobile product is responsible for the recall of the tires of the truck-mounted equipment when the automobile product leaves the factory, and the manufacturer of the tire is responsible for the recall if there is a defect in the tire of the unaccompanied vehicle. According to industry experts, tires are important accessories and are most likely to endanger the safety of vehicle owners. Therefore, many parties have called for the inclusion of recalls. In addition to the social concerns arising from the incidents such as Kumho Tire, the inclusion of tires in the recall regulations is a matter of course.

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