Regulation of the People's Republic of China on Road Transport(2019 Revision) Regulation of the People's Republic of China on Road Transport (Promulgated by Order No. 406 of the State Council of the People's Republic of China on April 30, 2004, revised for the first time in accordance with the Decision of the State Council on Amending and Repealing Some Administrative Regulations on November 9, 2012; revised for the second time in accordance with the Decision of the State Council on Amending Certain Administrative Regulations on February 6, 2016; and amended in accordance with the Decision of the State Council to Amend Certain Administrative Regulations on March 2, 2019) Chapter I General Provisions Article 1 The present Regulation is formulated to maintain the order of road transport market, ensure the safety of road transport, protect the legitimate rights and interests of all parties involved in road transport and promote the healthy development of road transport. Article 2 Anyone engaging in road transport business and other operations relating to road transport shall abide by the present Regulation. The term "road transport business" as mentioned in the preceding paragraph shall include business of road passenger transport and business of road freight transport. The term "other operations relating to road transport" shall include the business operations of stations (sites), business operations of motor vehicle maintenance and repair, and training of motor vehicle drivers. Article 3 The principle of lawful operation, honesty and good faith, and fair competition shall be observed by all those engaging in the road transport business and other operations relating to road transport. Article 4 The road transport administration shall be consistent with the principle of fairness, impartiality, openness and facilitating the people. Article 5 The state shall encourage the development of rural road transport and shall take necessary measures to ensure as many towns, townships and administrative villages as possible to have buses so as to satisfy the living and production needs of the farmers. Article 6 The State encourages road transport enterprises to engage in large-scale but intensive business operations. No entity or individual may blockade or monopolize the road transport market. Article 7 The administrative department of communications of the State Council is in charge of the road transport administration of the whole country. The administrative department of communications of the people's government on the county level or above is responsible for organizing and leading the road transport administration within its own administrative area. The road transport administrative department on the county level and above is responsible for carrying out the specific administration of the road transport business. Chapter II Road Transport Business Operation Section I Passenger Transport Article 8 Anyone who wishes to engage in the passenger transport business shall: a. have vehicles that can meet the demand of its business operations and that are found to be qualified upon test; b. have drivers that meet the requirements as described in Article 9 of the present Regulation; and c. have sound rules and bylaws regarding safe operations. Anyone who wishes to engage in route passenger transport business operations shall provide a plan with clear routes and stops. Article 9 A driver who is engaged in the passenger transport business operations shall: a. have obtained a corresponding motor vehicle driving permit; b. have not attained the age of 60 years; c. have no record of serious traffic accidents within the recent three years; and d. have passed the basic knowledge examination of relevant passenger transport laws and regulations, motor vehicle repair and maintenance, and first aid to passengers, as held by the road transport administrative organ on the districted municipality level. Article 10 To apply for engaging in the passenger transport business, the applicant shall, after undergoing the relevant registration formalities with the administrative department for industry and commerce according to the law, file an application under the following provisions and submit the relevant materials as prescribed in Article 8 of this Regulation. a. Anyone who wishes to engage in the passenger transport business operations within the administrative area of county shall file an application with the county-level road transport administrative organ; b. Anyone who wishes to engage in the passenger transport business operations across two or more county-level administrative areas within a province, autonomous region, or municipality directly under the Central Government shall file an application with their common superior road transport administrative organ; c. Anyone who wishes to engage in the passenger transport business operations across different provinces, autonomous regions, and municipalities directly under the Central Government shall file an application with the road transport administrative organ of the province, autonomous region, or municipality directly under the Central Government of the place where it is situated. The road transport administrative organ that receives an application as provided for in the preceding paragraph shall complete the examination within 20 days as of the day when the application is received, and make a decision whether to approve or disapprove. Where it is approved, a road transport business operation license shall be issued to the applicant and a vehicle operation certificate shall be issued to the applicant for the vehicle that is to be used for transport. Where it is disapproved, a written notice shall be given to the applicant to explain the reason. With regard to an application for engaging in the road transport business operations across different provinces, autonomous regions, and municipalities directly under the Central Government, the relevant road transport administrative organ of the provinces, autonomous regions, and municipalities directly under the Central Government concerned shall, prior to issuing a road transport business operation license according to Paragraph 2 of the present Article, discuss with the road transport administrative organ of the destination provinces, autonomous regions, and municipalities directly under the Central Government. If no agreement is reached after discussion, it shall be reported to the administrative department of communications of the State Council to decide. Article 11 If it is necessary for a passenger transport operator who has obtained a road transport business operation license to increase passenger transport business operation routes, it shall go through the relevant procedures in accordance with Article 10 of the present Regulation. Article 12 When the road transport administrative organ on the county level examines the passenger business operation applications, it shall take into consideration the status of demand and supply in the passenger transport market, universal services, facilitating the public, and other factors. When there are 3 or more applicants applying for one route, a decision of approval may be made by way of bidding. Article 13 The road transport administrative organs on the county level shall regularly announce the status quo of demand and supply in the passenger business operation market. Article 14 The route passenger transport business operation period shall be 4 – 8 years. If it is necessary to extend the route passenger transport business operation period when it expires, a new application shall be filed. Article 15 When a passenger transport business operator wishes to terminate the passenger transport business, it shall inform the original approval organ within 30 days prior to the termination. Article 16 A road passenger business operator shall provide passengers with a good environment, shall keep the vehicles clean and tidy, and shall take necessary measures to prevent the occurrence of any illegal act that would trespass the passengers' personal or property safety. Article 17 A passenger shall have a valid ticket to take a vehicle, observe the order, be polite and clean, shall not carry any dangerous articles or other prohibitive articles as provided for by the state. Article 18 After a route passenger transport business operator has acquired a road transport business operation license, it shall continuously provide transport services to the general public, shall not suspend, terminate or transfer the route passenger transport business without approval. Article 19 Anyone engaged in chartered passenger transport business, it shall operate according to the stipulated places of departure, destinations and routes. Anyone engaged in tourist transport business shall operate within the tourist areas according to the routes for tourism. Article 20 No passenger transport business operator may force any passenger to take its vehicle, deny or extort any passenger, change the transport vehicles without permission. Section II Freight Transport Article 21 Anyone who wishes to engage in freight transport business shall: a. have vehicles that can meet the demand of its business operations and that are found to be qualified upon test; b. have drivers that meet the requirements as described in Article 22 of the present Regulation; and c. have sound rules and bylaws regarding safe operations. Article 22 A driver who is engaged in freight transport business operations shall: a. have obtained a corresponding motor vehicle driving permit; b. have not attained the age of 60 years; c. have passed the basic knowledge examination of relevant freight transport laws and regulations, motor vehicle maintenance, and loading and safekeeping of goods, as held by the road transport administrative organ at the districted city level (excluding a driver who uses a general freight vehicle with a total mass of 4,500 kg or less). Article 23 Apart from the above mentioned conditions, anyone who applies for engaging in freight transport business operations involving dangerous cargoes shall: a. have 5 or more vehicles and equipment exclusively destined to dangerous cargo transport that can meet the demand of its business operations and that are found to be qualified upon test; b. have drivers, managerial personnel for loading and unloading goods and transport escorts who have passed the examination held by the local road transport administrative organ on the districted municipality level and have obtained corresponding post license; c. equip the vehicles exclusively destined to dangerous cargo transport with necessary telecommunication tools; and d. have sound rules and bylaws regarding safe operations. Article 24 To apply for engaging in the freight transport business, an applicant shall, after undergoing the relevant registration formalities with the administrative department for industry and commerce according to the law, file an application under the following provisions and respectively submit the relevant materials as prescribed in Article 21 and Article 23 of this Regulation. a. Anyone who wishes to engage in the freight transport business operations other than those involving dangerous cargoes shall file an application with the county-level road transport administrative organ; b. Anyone who wishes to engage in freight transport business involving dangerous cargoes shall file an application with the road transport administrative organ on the districted municipality level. The road transport administrative organ that receives an application as provided for in the preceding paragraph shall complete the examination within 20 days as of the day when the application is received, and make a decision whether to approve or disapprove. Where it is approved, a road transport business operation license shall be issued to the applicant and a vehicle operation certificate shall be issued to the applicant for the vehicle that is to be used for transport. Where it is disapproved, a written notice shall be given to the applicant to explain the reason. Whoever intends to engage in the general freight business with a general freight vehicle with a total mass of 4,500 kg or less is not required to apply for a road transport business permit and a vehicle operation certificate in accordance with the provisions of this Article. Article 25 No freight transport business operator may transport any goods banned by any law or administrative regulation. With regard to the goods banned from being transported unless the pertinent formalities as provided for in law or administrative regulation have been undergone, the freight tr......