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Notice of the Ministry of Internal Trade and the Ministry of Public Security on Issuing the Measures for the Administration of Second-hand Goods Circulation (Trial)
Chapter I General Provisions Article 1 These Measures are formulated in order to strengthen the management of secondhand goods circulation, maintain the order of secondhand goods circulation, standardize the behavior of secondhand goods trading, cultivate and develop the secondhand goods circulation industry and protect the legitimate rights and interests of the parties to the transaction. Article 2 All kinds of secondhand goods markets, enterprises dealing in secondhand goods and individual industrial and commercial households shall abide by these measures. Article 3 The second-hand goods mentioned in these Measures refer to articles that have entered the fields of production, consumption and daily consumption, are in a state of reserve, use and idleness, and maintain part or all of their original use value.

The term "second-hand market" as mentioned in these Measures refers to a place where buyers and sellers conduct open, regular or irregular second-hand trading activities and have supporting services such as information, evaluation, settlement, processing, renovation, warehousing and transportation. Article 4 The flea market is divided into national flea market and local flea market according to the business scope.

The national flea market refers to the flea market that attracts investment and operates across provinces (autonomous regions and municipalities directly under the Central Government).

Local flea market refers to the flea market that attracts investment and operates in various provinces (autonomous regions and municipalities directly under the Central Government). Fifth secondhand goods circulation adhere to the principle of public ownership as the main body and the common development of various ownership economies.

Second-hand goods circulation should be planned as a whole, rationally distributed, developed steadily, initially piloted and gradually opened after gaining experience.

Second-hand goods trading activities should follow the principles of voluntariness, fairness, honesty and credit. Article 6 The competent department of commodity circulation in the State Council is the competent department of secondhand goods industry.

The competent department of commodity circulation of the local people's governments at or above the county level shall be responsible for the industry management of the secondhand goods industry within their respective administrative areas.

Public security organs at all levels shall implement special industry management for the secondhand goods circulation industry. Article 7 The second-hand commodity trading association is a legally established social organization as a legal person, a self-regulatory organization of the second-hand commodity industry, and assists the competent commodity circulation departments of the people's governments at all levels in the management of the industry. Chapter II Establishment, Change and Termination Article 8 The establishment of a secondhand goods enterprise shall meet the following conditions:

(1) Having registered capital to meet business needs;

(2) Having full-time employees and managers commensurate with the scope and scale of business activities;

(3) Having a fixed business place, necessary business facilities and automatic management equipment;

(4) The legal representative has no intentional criminal record;

(5) Having articles of association, trading rules, public security system and management system;

(6) meeting other conditions as prescribed by laws and administrative regulations. Article 9 The establishment of a second-hand chain store shall meet the basic conditions for chain operation in addition to the conditions stipulated in Article 8 of these Measures.

Second-hand goods chain store refers to a number of shops that operate second-hand goods and use a unified name. Under the management of the same headquarters, they adopt a unified management model or grant concessions to achieve economies of scale. Article 10 The establishment of a flea market shall meet the following conditions:

(1) Having full-time employees, managers, funds, venues, supporting service facilities and automatic management equipment suitable for the business scale;

(2) Having articles of association, trading rules, public security system and management system;

(3) Conforming to the unified national and local planning and layout;

(4) Meeting other conditions as prescribed by laws and administrative regulations. Article 11 The establishment of second-hand enterprises and second-hand chain stores operating across provinces, autonomous regions and municipalities directly under the Central Government, and the establishment of branches across provinces, autonomous regions and municipalities directly under the Central Government shall be approved by the competent department of commodity circulation of the provincial people's government where the enterprise headquarters and branches are located, and reported to the competent department of commodity circulation of the State Council for approval. Article 12 The establishment of second-hand goods enterprises in counties (cities) below provinces, autonomous regions, municipalities directly under the Central Government and cities (prefectures) shall be approved by the commodity circulation departments of the local cities (prefectures) and provincial people's governments according to the different business scope. Thirteenth the establishment of a national flea market shall be examined and approved by the competent department of commodity circulation of the local provincial people's government (including cities under separate state planning) and reported to the competent department of commodity circulation of the State Council for approval. Article 14 The establishment of a local flea market shall be approved by the competent department of commodity circulation of the local provincial people's government (including cities under separate state planning) and reported to the competent department of commodity circulation of the State Council for the record. Fifteenth enterprises directly under the central government to set up a flea market, need to be approved by the competent department of the enterprise, the provincial (including cities under separate state planning) local people's government department in charge of commodity circulation, and the approval of the competent department of commodity circulation in the State Council. Article 16 To apply for the establishment of a secondhand enterprise, the following materials shall be submitted:

(1) An application report;

(2) Feasibility study report;

(3) Articles of association, trading rules, public security system and management system;

(4) Proof of capital credit, proof of the use of business premises and business facilities;

(5) Names, positions, identity certificates and qualification certificates of the legal representatives and full-time employees.

To apply for approval of the establishment of a second-hand goods chain store, in addition to the materials mentioned in the preceding paragraph, it is also necessary to submit the proof of having multiple stores and the decision of the headquarters to set up wholly-owned and controlled acquisition, processing and renovation centers and stores, or the chain operation contract signed between the headquarters and the stores with equity participation and no assets.