Guidebook for Chinese Used Car Export Country Comparative Guide: Chapter1-2

The used car export management system has been continuously improved. Over the past four years，the State Council and various ministries and commissions have launched relevant policies and regulations around the management of used car export enterprises，license application，quality safety and traceability，customs clearance facilitation，transfer registration and cancellation，etc.，have built a complete management system to facilitate the export of used cars，stimulated the vitality of used car export business，and promoted the rapid development of China's used car exports. In February 2024，the Ministry of Commerce(MOFCOM)，Ministry of Industry and Information Technology(MI IT)，Ministry of Public Security(MPS)，Ministry of Transportation(MOT)，General Administration of Customs of China(GACC) and other 5 departments issued the Announcement on Matters Relating to Used Cars Exports，Notice on Further Improvement of Used Cars Exports，which formulated the requirements and procedures relating to used car exports，and made it clear to carryout export business of used cars nationwide.

The Announcement on Matters Relating to Used Cars Exports, which is issued by the MOFCOM and other 4 departments, has made clear regulations on the requirements related to the business of exporting used cars, as shown below:

1.      The conditions for declaring used car export businesses are specified. Complete vehicle manufacturers that meet the conditions can declare directly, while the core declaration conditions for circulation enterprises are having a fixed business office and used car exhibition/sales venue, having experience in car sales or trade, and employing at least three professional appraisal and assessment personnel.

2.      The declaration procedure and materials s for enterprises to apply for conducting used car export business are clarified. Enterprises need to carry out the declaration work for exporting used cars annually. The provincial commerce authorities are responsible for auditing the declaration materials of the used car export enterprises.

For materials that meet the requirements of this announcement, approval should be granted within 15 working days; if the materials do not meet the requirements, the reasons should be informed in one go. The materials for enterprise declaration are basically consistent with the previous requirements for used car export enterprises all over the country.

3.      The process for applying for a used car export license is clarified. It is required that used cars that have been cleared for export cannot be returned, the application for vehicle deregistration should be made within two months after completing the export customs clearance procedures, and the quantity applied in the “A lot a license” should match the actual customs declaration quantity and be cleared in one go. Export enterprises should plan and coordinate well to ensure the smooth development of export business. At the same time, it is clarified that the application for an export license should follow the principle of “who exports, who applies,” and cannot be applied for by other enterprises or individuals on behalf.

4.      The materials required for applying for a used car export license are specified. New additions include a self-declaration by used car export inspection institutions that they have no uncorrected illegal activities and no serious dishonest behavior, and a declaration stamped with the company seal by used car export enterprises that the exported vehicles meet the entry standards of the target export market.

5.      Situations where the export of used cars is prohibited are emphasized. Besides, the Announcement further puts specific requirements for the export of used cars, including:

           i.     Strengthening Organization and Implementation. Local governments are required to establish specialized work mechanisms, clarify responsibilities of all parties，ensure that related work is conducted in an orderly and standardized manner, promoting the healthy and sustainable development of the used car export business.

          ii.     Strictly Ensuring Quality and Safety. Exported vehicles must meet the “Quality Requirements for Exported Used Passenger Cars"(WM/T 8-2022) or the “Quality Requirements for Exported Used Commercial cars and Trailers"(WM/T 9-2022), with product inspection reports issued by third-party testing institutions. If the target country has entry standards, the exporting enterprises must also declare compliance with these local standards. Used car export enterprises are the primary entities responsible for quality traceability and must strictly fulfill obligations such as product testing and truthfully express vehicle information.

         iii.     Enhancing International Business Capabilities. Encourage all localities to construct used car export bases integrating functions such as display and trade, repair and preparation, testing and certification, customs declaration and export, warehousing, logistics, and financial services. Encourage qualified used car export enterprises to establish motor vehicle registration service stations. Guide enterprises to build overseas maintenance service systems through self-construction, resource sharing, or multi-channel cooperation. Enterprises with the capability are encouraged to establish public display, trade centers and overseas warehouses in key markets. Encourage innovation in used car export marketing models, including actively exploring the construction of e-commerce platforms, auction platforms, etc.

         iv.     Strengthening Supervision and Services. Localities must timely track export situations, strengthen supervision and management of all aspects of used car exports，achieve full-process traceability, effectively prevent and control various risks, establish local used car export credit evaluation systems, guide enterprises to comply with laws and regulations, honesty management, strengthen industry self-discipline, standardize competitive behavior, and maintain export order.

The continuous optimization of domestic used car circulation policy environment provides strong support for the development of used car exports. Since 2020, the State Council and various ministries have issued a series of policy documents to promote consumption, making clear and forceful arrangements for the used car industry. Through measures such as promoting cross-regional transactions of used cars，completely canceling relocation restrictions, clarifying the attributes of used cars，eliminating unreasonable restrictions on used car dealerships, and continuing tax reduction policies for used cars. These policies facilitate used car transactions，accelerate the creation of a unified national market for used car transactions, and lay the foundation for the rapid development of the used car export business.