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Laws of the People's Republic of China

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Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1985-04-02 Effective Date  1985-05-01  

Measures for the Imposition of Surcharges for Purchases of Motor Vehicles

(Promulgated by the State Council on April 2, 1985)

    Article 1  Highways are infrastructure to serve the whole society. To
speed up the construction
of highways so as to meet the increasing demands
for highways owing to the socio-economic development and the rising living
standards of the people, these Measures are formulated based on the decision
to impose surcharges for purchases of motor vehicles as a special source of
funds for the construction of highways.

    Article 2  Surcharges for purchases of motor vehicles are imposed
nationwide and each vehicle purchased shall be surcharged only once.

    Article 3  A surcharge must be paid for all purchased motor vehicles to
be assembled and used by the purchasers themselves (not including manpowered
vehicles, animal-drown vehicles or bicycles) upon purchase or actual use.

    Article 4  The purchasers or users (including State organs and armed
forces) of the vehicles are obliged to the surcharge (hereinafter referred
to as payers).

    Article 5  Surcharges shall apply to purchases of the following motor

    (1) Domestically manufactured or assembled vehicles for domestic sale
and use (including those manufactured and assembled by various forms of joint
ventures and foreign-capital enterprises). These include buses, mini-buses,
general-purpose freight vehicles, cross-country vehicles, passenger vans,
two-wheel and three-wheel motorcycles, tractor trucks, semi-tractor trucks,
other transport vehicles (including delivery vans, container, trucks, tipper
lorries, tankers, lorries for transporting powdered or particulate cargoes
in bulk, cold storage and heat preservation vans, cattle vans, mail vehicles,
etc.) as well as trailers, semi-trailers and trailers for special usage.

    (2) All imported (new ones and the second-hand) vehicles as listed in
the preceeding paragraph.

    Article 6  The following vehicles shall be exempt from surcharges:

    (1) Vehicles with fixed installations for purposes other than

    (2) Vehicles used by foreign embassies and consulates, representative
offices of the UN organizations and international financial organizations in

    (3) Other vehicles exempt from surcharges as approved by the Ministry
of Communications and Ministry of Finance.

    Article 7  The collection of the surcharge for purchases of motor
vehicles shall be administered by the communications departments and the
surcharges shall be collected on their behalf by the units listed in these

    Article 8  The surcharge for the vehicles manufactured and assembled
domestically shall be collected by the producers or assemblers; the rate of
the surcharge shall be calculated on the basis of the actual sale price. The
surcharge for vehicles assembled and used by the purchaser shall be paid at
the local communications departments and the rate be calculated on the basis
of the local market price of similar vehicles. The rate of the surcharge for
domestically manufactured and assembled vehicles is 10 per cent.

    Article 9  The surcharge for imported vehicles shall be collected by the
Customs. The rate shall be 15 per cent based upon a combined price (i.e.
C.I.F. + duties + the value added tax).

    Article 10  The payers, upon surcharge payment, shall be issued
"surcharge-paid" certificates. The form of certificates shall be devised by
the Ministry of Communications.

    Article 11  Only with "surcharge-paid" certificates can the payers
apply for vehicle licence plates to the communications superintendences or
vehicle control departments of the public security organs, which shall, in
cases of evasion of payment, order the evaders to pay the surcharges at the
local communications departments, with an additional service charge.

    Article 12  Purchasers of the vehicles that are exempt from the surcharge
shall apply to the local communications departments for exemption certificates
before registration with the local communications superintendencies or public
security organs for vehicle license plates.

    Article 13  The incomes from the collection of surcharges for purchases
of motor vehicles shall be deposited with the China Industrial and Commercial
Bank in a special account of Ministry of Communications and shall be
transferred to the account by the Bank's local branches.

    Article 14  The surcharges for purchases of motor vehicles shall be exempt
from the State Fund for Energy and Transportation development.

    Article 15  The entire income of surcharges for purchases of motor
vehicles shall be a source of funds for the country's highway development. The
funds shall be used under the unified arrangement of the Ministry of
Communications according to relevant regulations of the State.

    Article 16  The collection and transfer of the surcharges are administered
and supervised in a unified way by communications departments at various
levels. The collecting units for surcharges for purchases of motor vehicles
shall establish special account books and deposit the money collected in the
special accounts of the Ministry of Communications for surcharge for purchase
of motor vehicles at the local industrial and commercial branch banks. They
shall also fill out relevant forms and statements and submit them to the
communications departments in charge of collecting the surcharges. The
collecting units are entitled to draw 0.3 per cent of the amount collected
as service charge.

    Article 17  The communications departments in charge of the surcharges
have the right to supervise the collecting units with respect to the
conditions of the collection and transfer. Immediate rectification shall be
required for any failure to act upon these Measures; and fines shall be
imposed on surcharge omissions or delayed transfers.

    Article 18  Payers who fail to pay surcharges according to these Measures
shall make up the payment and, in addition, be imposed according to the
circumstances, a fine up to five times or less the amount due. Forgery of
certificates shall be punished according to law.

    Article 19  In cases where disputes occur between the payers and the
collecting departments, the payers shall pay first as demanded and then
apply to higher communications department or finance departments for

    Article 20  Individuals and units that expose or report on cases of
surcharge evasion or certificate forgery shall be awarded.

    Article 21  The Ministry of Communications and the Ministry of Finance
shall be responsible for the interpretation of these Measures and the
formulation of the rules for the implementation thereof.

    Article 22  These Measures shall go into effect on May 1, 1985.

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