Regulation of the People's Republic of China on Road Transport (2023 Revision)

Regulation of the People's Republic of China on Road Transport (2023 Revision)

(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; revised for the third time in accordance with the Decision of the State Council to Amend Certain Administrative Regulations on March 2, 2019; revised for the fourth time in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulations on March 29, 2022; and revised for the fifth time in accordance with the Decision of the State Council to Amend and Repeal Certain Administrative Regulations on July 20, 2023)

Chapter I General Provisions
Article 1 This 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 this 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 (yard), business operations of motor vehicle maintenance, and motor vehicle driver training.
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 transport department of the State Council shall take charge of road transport administration nationwide.
The transport department of the local people's government at or above the county level shall be responsible for road transport administration within its administrative region.
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 this 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 maintenance, and first aid to passengers, as held by the transport department of the people's government at the districted city level.
Article 10 For being engaged in the passenger transport business, the applicant shall, after undergoing the relevant registration formalities with the market regulatory department in accordance with the law, file an application according to the following provisions, and submit the materials on its satisfaction of the conditions prescribed in Article 8 of this Regulation.
a. For being engaged in the passenger transport business within the administrative region of a county or equivalent or across the administrative regions of adjacent counties or equivalents, the applicant shall file an application with the transport department of the people's government of the county or equivalent where it is located.
b. For being engaged in the inter-provincial, inter-city, or inter-county (excluding administrative regions of adjacent counties or equivalents) passenger transport business, the applicant shall file an application with the transport department of the people's government of the districted city where it is located.
c. For being engaged in the passenger transport business in a municipality directly under the Central Government, the applicant shall file an application with the transport department determined by the people's government of the municipality directly under the Central Government where it is located.
A transport department that receives an application in accordance with the preceding paragraph shall, within 20 days of accepting the application, complete the examination and make a decision to grant or deny the application. If the application is granted, the transport department shall issue a road transport business permit to the applicant, and allocate commercial vehicle permits to the vehicles to be used by the applicant for transport; or if the application is denied, the transport department shall notify the applicant in writing, with an explanation of the reasons for the denial.
A transport department that receives an application for being engaged in the inter-provincial or inter-city passenger transport business shall, before issuing a road transport business permit in accordance with paragraph 2 of this article, consult with the corresponding transport department of the destination of the transport route, and if such consultation fails, report to the transport department of the people's government of the province, autonomous region, or municipality directly under the Central Government for consultation and decision under the applicable procedures. On an application for being engaged in the passenger transport business across adjacent counties within a districted city, the relevant transport departments shall conduct consultation, and if such consultation fails, report to the transport department of the people's government of the city where the applicant is located for decision.
Article 11 If it is necessary for a passenger transport business operator who has obtained a road transport business permit to increase passenger transport business operation routes, it shall go through the relevant procedures in accordance with Article 10 of this Regulation.
Article 12 When transport department of the local people's government at or above 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 transport departments of the local people's government at or above 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 permit, 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 this 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 transport department of the people's government 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 transport department at the districted city 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 For being engaged in the freight transport business, the applicant shall, after undergoing the relevant registration formalities with the market regulatory department in accordance with the law, file an application according to the following provisions, and submit respectively the materials on its satisfaction of the conditions prescribed in Articles 21 and 23 of this Regulation:
a. For being engaged in the freight transport business other than the dangerous goods transport business, the applicant shall file an application with the transport department of the people's government at the county level.
b. For being engaged in the dangerous goods transport business, the applicant shall file an application with the transport department of the people's government at the level of a districted city.
A transport department that receives an application in accordance with the preceding paragraph shall, within 20 days of accepting the application, complete the examination and make a decision to grant or deny the application. If the application is granted, the transport department shall issue a road transport business permit to the applicant, and allocate commercial vehicle permits to the vehicles to be used by the applicant for transport; or if the application is denied, the transport department shall notify the applicant in writing, with an explanation of the reasons for the denial.
For the general freight transport business using general freight vehicles with a gross weight of 4,500 kg or less, an application for a road transport business permit and commercial vehicle permits in accordance with the provisions of this article is not required.
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 transport business operator shall check and verify the said formalities.
Article 26 The state encourages freight transport business operators to adopt the way of closed transport so as to ensure the clean environment and safe freight transport.
A freight transport business operator shall take necessary measures to prevent the goods from falling down, being scattered from the vehicle.
In the transport of dangerous goods, necessary measures shall be taken to prevent inflammation, explosion, radiation and leak.
Article 27 In the transport of any dangerous goods, necessary transport escorts shall be arranged so as to ensure that the dangerous goods are under the supervision of the transport escorts, and an obvious sign for transport of dangerous goods shall be hung.
Anyone who consigns any dangerous goods shall tell the freight transport business operator the name, nature and emergency solutions of the dangerous goods, shall have the dangerous goods packed in strict compliance with the relevant requirements of the state, and shall set up an obvious sign.
Section III. Common Provisions on Passenger Transport and Freight Transport
Article 28 All passenger transport business operators and freight transport business operations shall intensify safety education and professional ethics education to the practitioners so as to ensure the safety of road transport.
All road transport practitioners shall abide by the road transport operating procedures. No one may operate by violating the operating procedures. No driver may drive for more than 4 consecutive hours.
Article 29 An enterprise engaged in manufacturing (refitting) passenger transport vehicles or freight transport vehicles shall, according to......