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REPLY OF THE STATE COUNCIL TO THE NOTICE OF BAN ON ILLEGAL COMPOSING OF AUTOMOBILES AND MOTORCYCLES

    The State Council agrees to the Notice of Ban on Illegal Composing of
Automobiles and Motorcycles. You are allowed to jointly promulgate the Notice
and conduct its implementation.
APPENDIX: NOTICE OF BAN ON ILLEGAL COMPOSING OF AUTOMOBILES AND MOTORCYCLES

    With a view to enforcing the state policy on automobile industry,
protecting the life safety of citizens, rigorously cracking down on illegal
composing of automobiles and motorcycles and maintaining the normal order of
production and marketing of automobiles and motorcycles, the following
provisions are hereby notified:

    1. It constitutes illegal vehicle composition to compose or make
automobiles using imported automobile body (including driver's cab) without
authorization of concerned state departments;

    2. It constitutes illegal vehicle composition to compose or make
motorcycles using imported motorcycle engines (including whole set of engine
components) and frames without authorization of concerned state departments;

    3. In case of illegal vehicle composition, the industrial and commercial
administrative organ, public security organ and the customs shall within their
respective jurisdiction confiscate sales income, vehicles so composed and
imported components not yet sold;

    4. Those confiscated vehicles, which have passed tests on quality and
safety, shall be run by units designated by the state to confiscate illicit
vehicles for enforcement of justice. No other unit or individual may run these
illegally composed automobiles and motorcycles. Whoever intends to buy
automobiles or motorcycles shall make the purchase with state-designated sales
units. In case of violation of these provisions, the industrial and commercial
administrative organ shall confiscate the illegally composed vehicles and
sales income. If the case is serious, the business license of the offender may
be revoked.

    5. Public traffic administrative department may not issue the vehicle
number plate or credential to any illegally composed vehicle except those
disposed of after confiscation according to law, and shall confiscate such
vehicles;

    6. Separate regulations shall be formulated in regard to handling illicit
composition of vehicles using domestic automobile or motorcycle bodies or
components.

    7. In case that violation of the present Notice is serious enough to
constitute a crime, the case shall be turned over to the judicial organ for
investigation into criminal responsibility therein.

    8. The present Notice shall come into force as of the date of promulgation.